This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 113 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 113 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Example:In 1963, President Kennedy issued sanctions, which prohibited all trade with Cuba. A) Quota. B) Tariff. C) Embargo. D) None of above. Show Answer Correct Answer: C) Embargo. 2. Who is the US's biggest trade partner? A) India. B) Canada. C) Mexico. D) China. Show Answer Correct Answer: B) Canada. 3. What is most likely to discourage international specialisation and trade for an economy? A) Increasing oil prices. B) Decreasing labour supply. C) Increasing trade barriers. D) Decreasing transport costs. Show Answer Correct Answer: C) Increasing trade barriers. 4. Smith's absolute cost advantage failed to explore in any comprehensive manner the ..... between two or more countries. A) Causes for trade. B) Case for trade. C) Basis for trade. D) Factors influencing trade. Show Answer Correct Answer: D) Factors influencing trade. 5. To focus on producing one thing to improve opportunity costs and efficiency is known as: A) Specialization. B) International trade. C) Absolute Advantage. D) Supply and Demand. Show Answer Correct Answer: A) Specialization. 6. The headquarters of WTO is at ..... A) Delhi. B) Geneva. C) London. D) Singapore. Show Answer Correct Answer: B) Geneva. 7. The price at which a currency can be bought or sold is its A) Exchange rate. B) Market rate. C) Export rate. D) Foreign rate. Show Answer Correct Answer: A) Exchange rate. 8. Trade between two states in an economy is known as ..... A) External. B) Internal. C) Both. D) None. Show Answer Correct Answer: B) Internal. 9. Excess, greater amount than necessary A) Surplus. B) Dumping. C) General Agreement on Tariffs and Trade. D) EFTA. Show Answer Correct Answer: A) Surplus. 10. 3 types of trade barriers include: A) Tariffs, quotas, embargo. B) Tariff, blocs, trade. C) Embargo, race, ethnicity. D) WTO, IMF, ICC. Show Answer Correct Answer: A) Tariffs, quotas, embargo. 11. How does international trade contribute to the efficiency of countries? A) International trade leads to unemployment and economic decline. B) International trade allows countries to specialize and increase efficiency. C) International trade only benefits large corporations and not the overall economy. D) International trade has no impact on economic growth. Show Answer Correct Answer: B) International trade allows countries to specialize and increase efficiency. 12. Cost advantages associated with large-scale production. A) Economies of scale. B) Economies of scope. C) None of the above. D) None of above. Show Answer Correct Answer: A) Economies of scale. 13. What is an essential government role in market economies? A) To control prices and costs. B) To prevent monopolies and collusion. C) To provide luxury items. D) To make goods and services. Show Answer Correct Answer: A) To control prices and costs. 14. A synonym of oversee A) Manage. B) Organize. C) Supervise. D) None of above. Show Answer Correct Answer: C) Supervise. 15. "Free trade is beneficial only if your country is strong enough to stand up to foreign competition." This statement belongs to what misconception in international economics? A) Productivity and Competitiveness. B) The Pauper Labor Argument. C) Exploitation. D) Economies of Scale. Show Answer Correct Answer: A) Productivity and Competitiveness. 16. In the coming years, Vietnam is expected to grow on: A) 3.7%. B) 2.5%. C) 5.7%. D) 22.5%. Show Answer Correct Answer: C) 5.7%. 17. An agreement among countries to reduce trade barriers is called: A) Economic integration. B) Common market. C) European Union. D) International trade. Show Answer Correct Answer: A) Economic integration. 18. In 2018, India lifted a ban on bean imports from Myanmar and allowed a limited number of beans to be imported each year A) Tariff. B) Quota. C) Standard. D) Subsidy. E) Embargo. Show Answer Correct Answer: B) Quota. 19. ..... is the amount by which the value of a country's exports exceeds the cost of its imports. A) Exchange rate. B) Protectionist policy. C) Trade surplus. D) Fails to deliver. Show Answer Correct Answer: C) Trade surplus. 20. Which of the following is not an argument in favour of trade protection? A) Protection for infant industries. B) Protection against dumping. C) Government revenue using tariffs. D) Correcting a balance of payments surplus. Show Answer Correct Answer: D) Correcting a balance of payments surplus. 21. Trade facilitation refers to: A) The impossibility of doing business if there are illegal practices. B) Protection to non discrimination practices and dumping. C) The simplification, harmonisation and automation of international trade procedures. D) Release of tariffs to boost trade between countries, including reduction of taxes and duties. Show Answer Correct Answer: C) The simplification, harmonisation and automation of international trade procedures. 22. Most Governments intervene in international trade by implementing policies that promote A) Cheaper goods and services for buyers/consumers. B) Barriers like protectionism, tariffs and manipulating exchange rates. C) Tax-free zones where multinational corporations are encouraged to maximise profits. D) Free trade agreements that eliminate barriers to trade (ie. tariffs). Show Answer Correct Answer: D) Free trade agreements that eliminate barriers to trade (ie. tariffs). 23. The difference in implementation between MFN and NT lies in..... A) Regional reach for the treatment given. B) Time period for the treatment given. C) The object being treated. D) Subjects who provide treatment. Show Answer Correct Answer: C) The object being treated. 24. It tries to ensure that regulations, standards, testing and certification procedures do not create unnecessary obstacles. A) Non-tariff. B) Rhetoric. C) Technical Barriers to Trade Agreement. D) Protectionism. Show Answer Correct Answer: C) Technical Barriers to Trade Agreement. 25. What is the main responsibility of the Canadian Border Services Agency (CBSA)? A) To enforce strict import regulations on member countries. B) To collect applicable duties and taxes on imported goods. C) To promote isolationism and reduce international trade. D) To regulate e-commerce transactions within member countries. Show Answer Correct Answer: B) To collect applicable duties and taxes on imported goods. 26. Problems faced in performance appraisal include..... A) Assessment implications are difficult to achieve. B) No response from the other party. C) The content of the assessment is very difficult. D) Assessment accuracy is difficult to achieve. Show Answer Correct Answer: D) Assessment accuracy is difficult to achieve. 27. Which of the following is not a benefit of trade barriers? A) Trade barrier can provide income for the government. B) Trade barrier provide jobs for a country's industries. C) Trade barrier protects a country's homeland from competition. D) None of the above. Show Answer Correct Answer: D) None of the above. 28. On June 24, 1497, Cabot spotted land and felt sure he had discovered a very quick route to India. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 29. USA decided to buy coconut products from the Philippines. This is an example of: A) Export. B) Free Trade. C) Import. D) Purchasing. Show Answer Correct Answer: C) Import. 30. The firm's value creation is measured by the difference between value of product to an average customer and cost of production per unit. 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