This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 106 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 106 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What does import mean? A) Selling goods to another country. B) Selling goods to another business. C) Buying goods from another country. D) Buying goods from another business. Show Answer Correct Answer: C) Buying goods from another country. 2. Australia's top export category is: A) Services. B) Manufacturing. C) Mineral fuels. D) Agriculture. Show Answer Correct Answer: C) Mineral fuels. 3. Trade agreement with more than two nations who have similar trade interests A) International Trade Agreements. B) Multilateral Trade Agreement. C) Protectionism. D) Bilateral Trade Agreement. Show Answer Correct Answer: B) Multilateral Trade Agreement. 4. If a country allows trade and the domestic price of a good is higher than the world price: A) The country will become an exporter of the good. B) The country will become an importer of the good. C) The country will neither import nor export. D) Additional information about demand is needed to determine whether the country will export or import the good. Show Answer Correct Answer: B) The country will become an importer of the good. 5. Which country has been banned from doing business with the United States? A) Cuba. B) Atlanta. C) Canada. D) Jamaica. Show Answer Correct Answer: A) Cuba. 6. Explain 4 types of method in international trade A) Current account, saving account, documentary credit and documentary collection. B) Advance payment, current account, documentary credit and documentary collection. C) Open account, advance payment, documentary collection and documentary credit. D) Closed account, advance payment, documentary collection and documentary credit. E) All the above. Show Answer Correct Answer: C) Open account, advance payment, documentary collection and documentary credit. 7. Country A is giving good price for your raw material but transport cost is very high.Country B is charging slightly higher price but transportaion charges are very less.Which country would you prefer A) A because price is very low. B) B because its better quality and lesser transportation charge. Show Answer Correct Answer: B) B because its better quality and lesser transportation charge. 8. Positive-Sum Game is a situation in which a gain by one country results in a loss by another. A) True. B) False. Show Answer Correct Answer: B) False. 9. MFN and NT principles apply in: A) GATT. B) GATS. C) TRIPS. D) All are correct. Show Answer Correct Answer: D) All are correct. 10. Select the features of International trade A) Foreign currency. B) Different Political system. C) Heterogeneous customer. D) All of the above. Show Answer Correct Answer: D) All of the above. 11. Goods and services bought from other countries A) Balance of Trade. B) Surplus. C) Import. D) Export. Show Answer Correct Answer: C) Import. 12. There is a chance that MNCs can be able to explore and exploit new markets that are not yet tapped or discovered. As a result, they could be able to market their products at a higher price. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 13. The wholesaler buys goods in a ..... quantity A) Less. B) More. C) Medium. D) None of the above. Show Answer Correct Answer: B) More. 14. What is the main reason consumers and firms buy abroad, as mentioned in the text? A) The product is of better quality abroad. B) The product is cheaper abroad. C) All of the above. D) The product is not available domestically. Show Answer Correct Answer: C) All of the above. 15. An agreement between nations or a group of nations in which all parties agree to a set of terms for the exchange of goods and services A) Free Trade. B) Globalization. C) International Trade. D) Trade Agreement. Show Answer Correct Answer: D) Trade Agreement. 16. Items transported out of a country to a foreign country A) North American Free Trade Agreement. B) International Trade. C) Exports. D) Imports. Show Answer Correct Answer: C) Exports. 17. The subsidy categories based on the SCM Agreement are, except: A) Non-prohibited subsidies. B) Actionable subsidies. C) Non-actionable subsidies. D) Prohibited subsidies. Show Answer Correct Answer: A) Non-prohibited subsidies. 18. Why do businesses change their location in other countries? A) To reduce raw material availability. B) To access new markets of customers. C) To decrease competition from local firms. D) To increase transport costs. Show Answer Correct Answer: B) To access new markets of customers. 19. Which of the following trade barriers is a block on trade with another country? A) Tariff. B) Embargo. C) Quota. D) Standards. Show Answer Correct Answer: B) Embargo. 20. What is one way that a negative trade balance can be converted into a $ 0 balance of payments? A) The negotiations of trade agreements. B) The imposition of tariffs. C) The use of import quotas. D) The funding of public works projects. Show Answer Correct Answer: B) The imposition of tariffs. 21. According to the factor-endowment model of Heckscher and Ohlin, if China is heavily endowed with land, this country will ..... A) Export products that are land-intensive. B) Import products that are land-intensive. C) Devote excessive amounts of resources to agricultural production. D) Devote insufficient amounts of resources to agricultural production. Show Answer Correct Answer: A) Export products that are land-intensive. 22. A formal agreement to cooperate together towards a common goal is A) Organization. B) Alliance. C) Abbreviation. D) None of above. Show Answer Correct Answer: B) Alliance. 23. Could we reach a ..... on this matter? Let's take a vote. A) Agreement. B) Negotiation. C) Consensus. D) Compliance. Show Answer Correct Answer: C) Consensus. 24. An exchange of internally produced good and services within a country. A) Domestic Trade. B) International Trade. C) Wholesale Trade. D) Home Trade. Show Answer Correct Answer: A) Domestic Trade. 25. The amount of one country's currency that is equal to one unit of another country's currency. A) Subsidies. B) Protectionism. C) Exchange rate. D) Barriers to trade. Show Answer Correct Answer: C) Exchange rate. 26. A theory which is based on opportunity cost. A) Absolute advantage. B) Mercantilism. C) Factor proportions. D) Comparative advantage. Show Answer Correct Answer: D) Comparative advantage. 27. International trade does not help provide more jobs to people. A) True. B) False. Show Answer Correct Answer: B) False. 28. What is capital? A) Money. B) Trade. C) Investments. D) Market. Show Answer Correct Answer: A) Money. 29. Which of the statements below does NOT support a free trade policy? A) Countries can specialize in goods and services to produce them at a lower cost at a higher quality. B) It allows companies in both countries to succeed and grow their economy without unnecessary competition. C) Improves diplomatic relations between countries. D) Helps prevent other countries from interfering in our economy. Show Answer Correct Answer: D) Helps prevent other countries from interfering in our economy. 30. What is the impact of investments on a nation's balance of payments? A) Capital enters the country, enabling imports and economic growth. B) Capital leaves the country, causing trade deficits and economic decline. C) Capital has no impact on the balance of payments. D) Capital only affects the financial markets. Show Answer Correct Answer: A) Capital enters the country, enabling imports and economic growth. ← 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