This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 105 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 105 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the primary benefit of international trade for a country's economy? A) International trade leads to decreased efficiency and economic decline. B) International trade has no impact on a country's economy. C) International trade only benefits other countries and not the country engaging in trade. D) International trade allows countries to specialize in the production of goods and services where they have a comparative advantage, leading to increased efficiency and economic growth. Show Answer Correct Answer: D) International trade allows countries to specialize in the production of goods and services where they have a comparative advantage, leading to increased efficiency and economic growth. 2. What is invisible trade? A) Trading in goods. B) Trading in commodities. C) Trading in service. D) None of these. Show Answer Correct Answer: C) Trading in service. 3. How does international trade contribute to the exchange of cultural ideas and diversity? A) International trade has no impact on cultural exchange and diversity. B) International trade promotes cultural exchange and diversity by facilitating the sharing of goods, services, and ideas between different cultures and countries. C) International trade is solely focused on economic benefits and has no relation to cultural exchange and diversity. D) International trade only promotes cultural exchange and diversity through the exchange of traditional artifacts and artworks. Show Answer Correct Answer: B) International trade promotes cultural exchange and diversity by facilitating the sharing of goods, services, and ideas between different cultures and countries. 4. Travel abroad is cheaper for American tourists. A) Appreciation. B) Depreciation. Show Answer Correct Answer: A) Appreciation. 5. Exchange rates among the currencies of the world change ..... A) Constantly. B) Rarely. C) Annually. D) Slowly. Show Answer Correct Answer: A) Constantly. 6. The following is an activity that causes a foreign exchange of a country to increase ..... A) Provide foreign loans. B) Exporting goods abroad. C) The government sells foreign currency in order to stabilize the exchange rate. D) Selling goods domestically. Show Answer Correct Answer: B) Exporting goods abroad. 7. French people on holiday in Ireland are an example of A) Visible export. B) Invisible export. C) Invisible import. D) Visible import. Show Answer Correct Answer: B) Invisible export. 8. Which is NOT one of the reasons international trading is important? A) Expand United States affairs. B) Unrestricted flow of goods. C) Cheaper availability. D) Easier trading practices. Show Answer Correct Answer: A) Expand United States affairs. 9. Who controls the UN? A) China. B) England. C) USA. D) Russia. Show Answer Correct Answer: C) USA. 10. Why do dome countries try to limit imports? A) Negative balance of trade. B) Price of goods from foreign countries are lower. C) Traders are not available. D) Balance of trade get improved. Show Answer Correct Answer: A) Negative balance of trade. 11. Which of the following is NOT a feature of free trade? A) Increase in world output. B) Comparative cost advantage. C) Trade specialization. D) Protectionism. Show Answer Correct Answer: D) Protectionism. 12. Which is NOT a type of settlement in international trade? A) Counter Trade. B) Payment in Advance. C) Open Account. D) Cash on Delivery. E) Consignment Method. Show Answer Correct Answer: D) Cash on Delivery. 13. The trade deficit is an economic condition in which a nation imports more than it exports. A) False. B) True. Show Answer Correct Answer: B) True. 14. Trade agreement between two nations A) Multilateral trade agreements. B) International trade agreements. C) Regional Trade Agreement. D) Bilateral trade agreement. Show Answer Correct Answer: D) Bilateral trade agreement. 15. If free trade will benefit all nations in the long run, why do nations so often establish barriers, like tariffs, to make free trade impossible? A) Treaties forbid free trade. B) International organizations, like the World Trade Organization (WTO), forbid free trade. C) Nations often seek to protect their firms and their workers from competition. D) Nations fear that other nations will become too rich if they can trade freely. Show Answer Correct Answer: A) Treaties forbid free trade. 16. ..... are given by government to ensure its products produced in their country would cost less and are more competitive than those from other countries. A) Quota. B) Standards. C) Exchange control. D) Subsidies. Show Answer Correct Answer: D) Subsidies. 17. For the ..... advantage to accrue, undertaking the business activity must be more profitable overseas than undertaking it locally. A) Location. B) Internalization. C) Home country. D) Ownership. Show Answer Correct Answer: A) Location. 18. ..... involves investments offunds abroad in exchange for financialreturn. A) Contract manufacturing. B) Foreign investments. C) Licensing. D) Manufacturing. Show Answer Correct Answer: B) Foreign investments. 19. Which of the following is one way that a few firms can gain some control over their market? A) Secretly cooperate with one another. B) Bribe government officials to have prices set by law. C) Threaten to stop producing. D) Use advertising to increase demand. Show Answer Correct Answer: A) Secretly cooperate with one another. 20. What would not be included in the current account of the balance of payments? A dividends earned from a firm in another country B imports of TVs from another country C purchase of a house in another country D rents paid to owners of land in another country A) B. B) C. C) A. D) D. Show Answer Correct Answer: B) C. 21. Trade is a manifestation of economic activity since it involves these activities except A) Supply and demand between nations in international market. B) Competitions between firms for bigger control in market. C) Regulation to protect local market from product invasions. D) Labour and capital mobility across border. Show Answer Correct Answer: C) Regulation to protect local market from product invasions. 22. Headquarter of ASEAN is ..... A) Minsk, Belarus. B) Jakarta, Indonesia. C) Kathmandu, Nepal. D) Vienna, Austria. Show Answer Correct Answer: B) Jakarta, Indonesia. 23. Items transported into a country from a foreign country A) Surplus. B) International Trade. C) Imports. D) North American Free Trade Agreement. Show Answer Correct Answer: C) Imports. 24. Roughly how many species does CITES protect total? A) 24, 000. B) 34, 000. C) 1, 000. D) 36, 000. Show Answer Correct Answer: D) 36, 000. 25. True or False:Factor endowments are not static and can change over time. A) True. B) False. Show Answer Correct Answer: A) True. 26. Corporations such as Ford Motor Company, Shell Oil Company, and British Petroleum, which produce and sell products in different countries, are called A) Multinational. B) Globals. C) Industries. D) Mega companies. Show Answer Correct Answer: A) Multinational. 27. Mercantilism is an economic philosophy advocating that countries should simultaneously encourage imports and discourage exports. A) True. B) False. Show Answer Correct Answer: B) False. 28. Product differentiation in economics is known as ..... A) Process of setting up the price. B) Process to make the product unique. C) Process of distinguishing a product or service from others. D) None of above. Show Answer Correct Answer: C) Process of distinguishing a product or service from others. 29. With international trade, it is best for a country to have a A) The trade fails. B) Trade surplus. C) A displacement of workers. D) None of the above. Show Answer Correct Answer: B) Trade surplus. 30. International trade will bring more unemployment issues due to the local producers close their operation because not being abble to compete with the imported goods. A) ALWAYS TRUE. B) ALWAYS FALSE. C) MIGHT BE NOT. D) None of above. Show Answer Correct Answer: C) MIGHT BE NOT. ← PreviousNext →Related QuizzesInternational Economics QuizzesEconomics QuizzesInternational Trade Quiz 1International Trade Quiz 2International Trade Quiz 3International Trade Quiz 4International Trade Quiz 5International Trade Quiz 6International Trade Quiz 7International Trade Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books