This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 108 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 108 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The Government's approach to innovation and science fosters globally competitive businesses and institutions that provide better paying jobs. A) False. B) True. Show Answer Correct Answer: B) True. 2. What is the main goal of a free trade agreement? A) To increase tariffs on imported goods. B) To restrict trade between countries. C) To eliminate trade barriers and promote economic cooperation. D) To encourage trade imbalances. Show Answer Correct Answer: C) To eliminate trade barriers and promote economic cooperation. 3. Which of the following is the value of the output produced by a unit of labor or capital? A) Creativity. B) Exports. C) Imports. D) Productivity. Show Answer Correct Answer: D) Productivity. 4. The condition that exists when someone can produce a good or service using fewer resources than someone else. A) Comparative Advantage. B) Absolute Advantage. Show Answer Correct Answer: B) Absolute Advantage. 5. The Philippines is the world's second-largest producer of ..... Hence, our country has the absolute advantage in Asia when it comes to producing this product. A) Banana. B) Pineapple. C) Coconut. D) None of above. Show Answer Correct Answer: C) Coconut. 6. The followings are true statements about the relation between interest rate and trade balance except A) An increase in interest rate can lead to an increase in the price of exports. B) When trade deficits rise, the interest rates also go up. C) Higher interest rates mean a stock market that declines in value. D) Higher interest rates tend to attract foreign investment, decreasing the demand for and value of the home country's currency. Show Answer Correct Answer: D) Higher interest rates tend to attract foreign investment, decreasing the demand for and value of the home country's currency. 7. A quantity of goods or services a country can sell A) Need. B) Want. C) Supply. D) Demand. Show Answer Correct Answer: C) Supply. 8. The Chinese government gave billions of RMB to support the e-car industry. What type of trade barrier is it? A) Standard. B) Quota. C) Subsidy. D) Tariff. Show Answer Correct Answer: C) Subsidy. 9. The United States buys coffee beans from Brazil. This is an ..... A) Import. B) Export. Show Answer Correct Answer: A) Import. 10. State activities to bring in goods or services from abroad are called..... A) Importer. B) Export. C) Impor. D) Exporter. Show Answer Correct Answer: C) Impor. 11. An invisible Export is ..... A) A physical good that has been brought in from another country. B) A physical good that has been sold to another country. C) A service that has been brought in from another country. D) A service that has been sold to another country. Show Answer Correct Answer: D) A service that has been sold to another country. 12. A major cost of freer trade from poor nations is that they will A) They will get more stuff. B) Environmental damage. C) Get cheaper stuff. D) Greater variety of stuff. Show Answer Correct Answer: B) Environmental damage. 13. The activity of selling goods from within the country to abroad is called..... A) Importer. B) Exporter. C) Export. D) Impor. Show Answer Correct Answer: C) Export. 14. Japan can produce either 90 cars or 110 pounds of soybeans and South Korea can produce either 50 cars or 80 pounds of soybeans. Which of the following statements is true? A) South Korea has the comparative advantage in cars and should specialize in producing cars. B) South Korea has an absolute advantage in both cars and soybeans and should specialize in both. C) Japan has the comparative advantage in cars and should specialize in producing cars. D) Japan has the comparative advantage in soybeans and should specialize in producing soybeans. Show Answer Correct Answer: C) Japan has the comparative advantage in cars and should specialize in producing cars. 15. What encourages international specialisation? A a foreign exchange shortage B diseconomies of scale C free trade D quotas A) B. B) D. C) A. D) C. Show Answer Correct Answer: D) C. 16. The driving factor for international trade for a country is..... A) Prosperity for society. B) Looking for maximum profit. C) Import Restrictions. D) Low quality of natural resources. Show Answer Correct Answer: A) Prosperity for society. 17. Which of the following can be done with international trade? A) Food. B) Machinery. C) All of the above. D) Consumer goods. Show Answer Correct Answer: C) All of the above. 18. Following is the reason underlying trade between nations: A) The unequal distribution of natural resources. B) The differences in their productivity level. C) Both of the above. D) None of the above. Show Answer Correct Answer: C) Both of the above. 19. Based on GATT provisions, a product is said to be dumped when..... A) The price value of goods being marketed is above the price of similar products. B) The price value of the goods being marketed is the same as the value of similar priced products. C) The price value of goods marketed is below the price of similar products. D) The value of the marketed goods rises periodically. Show Answer Correct Answer: C) The price value of goods marketed is below the price of similar products. 20. Why was the Chinese steel industry facing a crisis? A) Surplus of steel with decrease of steel demand. B) Natural disasters. C) Unemployment rates. D) Increase of demand. Show Answer Correct Answer: A) Surplus of steel with decrease of steel demand. 21. Formulates overall policies and strategies for Small and Medium Enterprises (SMEs) and coordinates the implementation of SME development programmes across the Ministries and Agencies. A) MSI. B) SME BANK. C) SME CORP. D) MAY. Show Answer Correct Answer: C) SME CORP. 22. An invoice is issued by the seller to the buyer. A) True. B) False. Show Answer Correct Answer: A) True. 23. How many regions of the world are included in the Perroni-Whalley model? A) 6. B) 8. C) 7. D) None of above. Show Answer Correct Answer: C) 7. 24. How can the benefits of international trade extend beyond the buyers and sellers in trade transactions and benefit a whole country? A) By increasing access to physical capital and export markets. B) By reducing the cost of imported goods. C) By providing job opportunities for domestic workers. D) By increasing government revenue through tariffs. Show Answer Correct Answer: A) By increasing access to physical capital and export markets. 25. The first assumption in Comparative Advantage Theory:The world consists of ..... nations, each using ..... input to produce ..... commodities. A) Two-two-two. B) Two-one-multiple. C) Two-a single-two. D) Two-multiple-multiple. Show Answer Correct Answer: C) Two-a single-two. 26. An economy's ability to produce a particular good or service at a lower opportunity cost than its trading partners. A) Globalization. B) Absolute Advantage. C) Comparative Advantage. D) Balance of Trade. Show Answer Correct Answer: C) Comparative Advantage. 27. Policy in which governments do not place restrictions on imports and exports A) Trade Failure. B) Free Trade. C) Trade Dependency. D) Exports. Show Answer Correct Answer: B) Free Trade. 28. It is the authority of organization that controls the flow of goods in and out of a country. A) Customs. B) Duty. C) Both are correct. D) None of above. Show Answer Correct Answer: A) Customs. 29. What are the main objects of transport insurance? A) 3. B) 4. C) 5. D) 6. Show Answer Correct Answer: C) 5. 30. The first trade didn't occur during the 15th century but instead during 1400's since the first to discover the fur are not the Europeans but only mere fishermen and travelers. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. ← 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