This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 114 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 114 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The principles in the Multilateral Trading System (MTS) are..... A) MFN. B) NT. C) TRN. D) All true. Show Answer Correct Answer: D) All true. 2. Goods imported from abroad are called..... A) Merchandise. B) Export commodities. C) Imported commodities. D) Export premium. Show Answer Correct Answer: C) Imported commodities. 3. What does effects of international trade within countries does the Ricardian Model assumes away? A) Specialization. B) Economies of Scale. C) Resources. D) Distribution of Income. Show Answer Correct Answer: D) Distribution of Income. 4. An ..... economy is the economy of a developing nation. A) Emergency market. B) Existing market. C) Enriching market. D) Emerging market. Show Answer Correct Answer: D) Emerging market. 5. The practical application of techniques and knowledge is called A) Economics. B) Competition. C) Technology. D) Marketing. Show Answer Correct Answer: B) Competition. 6. Assume the real interest rate in country x increases relative to other countries. What will happen to the value of the currency and net exports in country x? A) The currency will appreciate and net exports will decrease. B) The currency will depreciate and net exports will increase. C) The currency will stay the same and net exports will stay the same. D) The currency will appreciate and net exports will increase. E) The currency will depreciate and net exports will decrease. Show Answer Correct Answer: A) The currency will appreciate and net exports will decrease. 7. There are many ..... you can fly to from Middle East. A) Destinations. B) Networks. C) Goods. D) None of above. Show Answer Correct Answer: A) Destinations. 8. What is important to review when generating a tariff invoice? A) Minimum and maximum amounts. B) Account balance. C) Supplier invoice. D) Tax rate. Show Answer Correct Answer: A) Minimum and maximum amounts. 9. What are tariffs and how do they affect international trade? A) Tariffs are restrictions imposed on exported goods, making them difficult to sell in international markets. They can affect international trade by limiting the availability of goods and promoting self-sufficiency within countries. B) Tariffs are subsidies given to imported goods, making them cheaper for consumers. They can affect international trade by increasing the demand for those goods and promoting trade agreements between countries. C) Tariffs are taxes imposed on imported goods, making them more expensive for consumers. They can affect international trade by increasing the cost of imported goods, leading to a decrease in demand for those goods and potentially causing trade disputes between countries. D) Tariffs are incentives given to foreign companies to encourage them to export more goods. They can affect international trade by boosting the economy and creating more job opportunities in importing countries. Show Answer Correct Answer: C) Tariffs are taxes imposed on imported goods, making them more expensive for consumers. They can affect international trade by increasing the cost of imported goods, leading to a decrease in demand for those goods and potentially causing trade disputes between countries. 10. Which of the following does not belong to the arguments in favor of trade barriers? A) Military self-sufficiency. B) Protects the standard of living. C) Helps maintain local employment. D) Affects type of goods and services which enter the world trade. Show Answer Correct Answer: D) Affects type of goods and services which enter the world trade. 11. One legal effort that can be taken to restore/improve a situation as a quick (unilateral) response to the impact of losses due to the implementation of subsidies is: A) Imposition of income tax. B) Imposition. C) Imposition of countervailing duties. D) All wrong. Show Answer Correct Answer: C) Imposition of countervailing duties. 12. Whereas in a closed economy ..... an open economy is one where ..... A) Imports equal exports / imports are usually greater than imports. B) Saving is equal to investment / saving is not equal to investment. C) There is no international trade / there is international trade. D) There is no government intervention in the market / there is substantial government intervention. Show Answer Correct Answer: C) There is no international trade / there is international trade. 13. About how much of the total federal budget does foreign aid account for? A) 5%. B) 15%. C) 1%. D) 10%. Show Answer Correct Answer: C) 1%. 14. The currency of most countries within the European Union A) Currency. B) Euro. C) Exchange rate. D) Eurozone. E) Exchange. Show Answer Correct Answer: B) Euro. 15. The purchase of a foreign service is an example of A) Invisible import. B) Visible export. C) Visible import. D) Invisible export. Show Answer Correct Answer: A) Invisible import. 16. To overcome the negative impacts of international trade can be done by..... A) Promote foreign products. B) Bringing foreign labor. C) Providing subsidies to small industries. D) Importing branded goods. Show Answer Correct Answer: C) Providing subsidies to small industries. 17. A governmental action that is the opposite of privatization is ..... A) Militarization. B) Governmentalization. C) Publicization. D) Nationalization. Show Answer Correct Answer: D) Nationalization. 18. It is a classical theory today when a country's goal is to achieve and maintain a trade surplus A) Mercantalist. B) Neo mercantilism. C) Trade mercantilism. D) Mercatilism. Show Answer Correct Answer: B) Neo mercantilism. 19. The incorrect statement below regarding Certificate of Origin (COO) is..... A) Documents required as a condition for exemption from import duties for imported products originating from countries that have entered into an agreement with the Indonesian government. B) This document can be issued by institutions or agencies that do not have the authority to issue COO. C) A document explaining the original certificate. D) Document that explains the country of origin of an imported or exported item. Show Answer Correct Answer: B) This document can be issued by institutions or agencies that do not have the authority to issue COO. 20. When the dollar strengthens it pushes the balance of trade toward a A) Shortage. B) Equilibrium. C) Surplus. D) Deficit. Show Answer Correct Answer: C) Surplus. 21. Assume that the terms from trade are 1 coffee for 1 tea. Who benefits from this trade? A) Peru. B) Colombia. C) Neither. D) Both. Show Answer Correct Answer: A) Peru. 22. Japan has a 100% tariff on Corvette imports. If a Corvette costs $ 80, 000.00 in the United States, how much would a Japanese person pay for it? Would this increase or decrease U.S. exports to Japan? A) $ 160, 000.00 increase. B) $ 160, 000.00 decrease. C) $ 80, 000.00 decrease. D) $ 80, 000.00 increase. Show Answer Correct Answer: B) $ 160, 000.00 decrease. 23. Pineapples grown in Eleuthra sold in Hawaii A) Export. B) Import. Show Answer Correct Answer: A) Export. 24. Which of the following would appear as a credit item in the UK current account balance? A) Money sent by UK residents to their relatives abroad. B) Expenditure by the British Government in maintaining foreign embassies overseas. C) The expenditure of Japanese tourists on holiday in Britain. D) None of above. Show Answer Correct Answer: C) The expenditure of Japanese tourists on holiday in Britain. 25. Countries use several different techniques to protect industries from the harmful effects of trade ..... Tariffs are one of the most common barriers to trade. A) True. B) False. Show Answer Correct Answer: A) True. 26. A ..... is a group of countries that eliminate all tariffs on trade among themselves but maintain a common external tariff on trade with countries outside the union A) Free-trade area. B) Tariff. C) Trade agreement. D) Custom Union. Show Answer Correct Answer: D) Custom Union. 27. This theory explains what has happened for products like photocopiers and a number of other high technology products developed in the US in the 1960s and 1970s. A) Comparative Advantage. B) Absolute Advantage. C) Product Life Cycle. D) Mercantilism. Show Answer Correct Answer: C) Product Life Cycle. 28. Look at the table enclosed. Which of the following has been incorrectly matched. A) 4. B) 5. C) 2. D) 1. Show Answer Correct Answer: B) 5. 29. Which issues are coverred under scope of trade liberlization under WTO Agreements A) Trade in Goods. B) Trade in Service. C) Trade Related Intellectual Property. D) All the above is correct. Show Answer Correct Answer: D) All the above is correct. 30. An expansionary fiscal policy would take these measures except A) An increase in government revenues. B) A reduction in taxation. C) A reduction in government expenditure. D) An increase in government spending. Show Answer Correct Answer: A) An increase in government revenues. ← 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