This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 115 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 115 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A country is encouraged to produce those goods or services where they have an absolute advantage or comparative advantage A) False. B) True. Show Answer Correct Answer: B) True. 2. U.S. exports provides/sells about ..... of world's total exports. A) 8.5%. B) 85.5%. C) 50.5%. D) None of above. Show Answer Correct Answer: A) 8.5%. 3. Financial sector relates to Australia's trade with other nations. A) True. B) False. Show Answer Correct Answer: B) False. 4. Which mean is less expensive? A) Airfreight. B) Ocean freight. Show Answer Correct Answer: B) Ocean freight. 5. The Sri Lankan government decides to offer financial support to local firms. Of what is this an example? A a quota B a subsidy C a tariff D exchange control A) D. B) C. C) B. D) A. Show Answer Correct Answer: C) B. 6. Economies of scale are the reduction in costs of production achieved through increased output. A) True. B) False. Show Answer Correct Answer: B) False. 7. The Vent/ Outlet for Surplus' doctrine of Adam Smith can have serious adverse repercussions on the growth process of the ..... that do not sell their surplus produce in foreign markets but are constrained to export despite domestic shortages for the reasons of neutralising their balance of payments deficit. A) Developed countries. B) Backward countries. C) Traditional countries. D) Advanced countries. Show Answer Correct Answer: B) Backward countries. 8. The volume of products remained fairly ..... until the mid 1980s. A) Low. B) Average. C) Medium. D) None of above. Show Answer Correct Answer: A) Low. 9. Exchange of goods and services is called A) International Trade. B) Trade. Show Answer Correct Answer: A) International Trade. 10. Provides defense for a group of countries within a region against tariffs and other trade barriers Canada-European Free Trade Associationfree trade agreement among Canada and the EFTA countries A) European Union. B) General Agreement on Tariffs and Trade. C) Trade Bloc. D) Regional Trade Agreement. Show Answer Correct Answer: C) Trade Bloc. 11. What would happen if the European Union (E.U.) put a quota on American jeans and only allowed their countries to import 5, 000 pairs of jeans? A) Nothing, because European countries dislike American products. B) American jeans would become very expensive and desirable in the EU. C) American jeans would be less desirable in the EU and there would be no demand. D) French jeans would be more popular than any jeans and America would stop importing jeans to Europe. Show Answer Correct Answer: B) American jeans would become very expensive and desirable in the EU. 12. Price quoted to the buyer, signifying the buyer pays separately for insurance A) Tax. B) C&H. C) Tariff. D) C&F. Show Answer Correct Answer: B) C&H. 13. This theory is also known as the Factor Endowment Theory A) Leontief Paradox Theory. B) Product Life Cycle Theory. C) Heckscher-Ohlin Theory. D) None of above. Show Answer Correct Answer: C) Heckscher-Ohlin Theory. 14. What is the collection documents in International trade? A) Commercial documents" under URC522 include invoices, transport documents, documents of titles or other similar documents, or any other documents which are not financial documents and instruments used for obtaining the payment of money. B) Commercial documents" under URC522 include cash, transport files, papers of titles or other similar papers, or any other papers which are not financial documents and instruments used for obtaining the transfer of money. C) Commercial documents" under URC522 include taxes, insurance documents, papers of titles or other similar insurance documents, or any other bnm documents which are not financial documents and instruments used for obtaining the payment of transport. D) All the above. Show Answer Correct Answer: A) Commercial documents" under URC522 include invoices, transport documents, documents of titles or other similar documents, or any other documents which are not financial documents and instruments used for obtaining the payment of money. 15. Protectionism is part of free trade, some of the time. A) True. B) False. Show Answer Correct Answer: B) False. 16. Which organization settles exchange rate problems? A) International Development Association. B) International Monetary Fund. C) World Bank Group. D) None of these. Show Answer Correct Answer: C) World Bank Group. 17. When choosing the appropriate terms of delivery, deciding factors which seen from the seller's perspective include:except A) Capital. B) Procedures. C) Transportation route. D) Mode of transport. E) Competitive situation. Show Answer Correct Answer: A) Capital. 18. The United States sends a shipment of pineapples to France, who then sends a shipment of tea to the United States. Which of the following correctly identifies Imports and exports of the United States? A) The United States imported pineapples and exported tea. B) The United States imported both pineapple and tea. C) France was the only country to deal with imports and exports. D) The United States imported tea and exported pineapples. Show Answer Correct Answer: D) The United States imported tea and exported pineapples. 19. T or F:international trade allows countries to expand their markets A) False. B) True. Show Answer Correct Answer: B) True. 20. Which of the following is an example of a trade agreement? A) Export subsidies. B) World Trade Organization (WTO). C) Import quotas. D) Trade tariffs. Show Answer Correct Answer: B) World Trade Organization (WTO). 21. Which of the following would NOT benefit from the protectionism policy? A) Unemployed. B) Government. C) Domestic industries. D) Importer. Show Answer Correct Answer: D) Importer. 22. A group of countries which come together because they share a common goal is a A) Abbreviation. B) Alliance. C) International Organization. D) None of above. Show Answer Correct Answer: C) International Organization. 23. A balance of payments surplus on the current account is significant because it may mean the economy may have to A) Deplete their foreign exchange reserves. B) Resist the pressure on their currency to depreciate. C) Deal with demand-pull inflationary pressures. D) Ensure they borrow the equivalent amount of the surplus from overseas. Show Answer Correct Answer: C) Deal with demand-pull inflationary pressures. 24. What percentage of Australia's income is sourced from exports? A) 46%. B) 24%. C) 30%. D) 15%. Show Answer Correct Answer: B) 24%. 25. International trade is most likely to generate short-term unemployment in: A) Industries in which there are neither imports nor exports. B) Import-competing industries. C) Industries that sell to domestic and foreign buyers. D) Industries that sell to only foreign buyers. Show Answer Correct Answer: B) Import-competing industries. 26. ..... may not be a benefit of trade. A) Increased economic development. B) Reduced possibilities of war. C) A source of foreign exchange. D) Economies of scale. Show Answer Correct Answer: A) Increased economic development. 27. The major international economic problem is winners and losers in the trade industry A) True. B) False. Show Answer Correct Answer: B) False. 28. In charge of handling used or damaged goods A) Reverse logistics. B) Cross-docking. C) Transshipment. D) None of above. Show Answer Correct Answer: A) Reverse logistics. 29. Which of the following is a tax levied on land and buildings, and sometimes boats and cars? It is also a key source of revenue for local governments. A) Ownership Tax. B) Property Tax. C) Sales Tax. D) Income Tax. Show Answer Correct Answer: B) Property Tax. 30. According to economists like Adam Smith, who benefits from free trade? A) Only sellers. B) Only buyers. C) No one. D) Both buyers and sellers. Show Answer Correct Answer: A) Only sellers. ← 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