This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 118 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 118 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. They are taxes or fees levied on goods when they cross international borders. These duties are collected by customs authorities to regulate trade and generate revenue for the government. A) Tariff. B) Customs duties. Show Answer Correct Answer: B) Customs duties. 2. Who is the proponent of the Principle of Comparative Advantage? A) That is, Hecksher. B) Bertil Ohlin. C) David Ricardo. D) Michael Porter. Show Answer Correct Answer: C) David Ricardo. 3. New ..... are still being discovered today! A) Trade. B) Weather. C) Market. D) Civilisations. Show Answer Correct Answer: D) Civilisations. 4. Protectionism is a form of ..... A) Protecting American trade partners. B) Protecting America's offshore oil fields. C) Checking for monsters under American's bed. D) Protecting American businesses. Show Answer Correct Answer: D) Protecting American businesses. 5. What is the purpose of the General Agreement on Tariffs and Trade (GATT)? A) To promote isolationism and reduce international trade. B) To enforce strict import regulations on member countries. C) To regulate e-commerce transactions within member countries. D) To liberalize trade by reducing tariffs and removing quotas among member countries. Show Answer Correct Answer: D) To liberalize trade by reducing tariffs and removing quotas among member countries. 6. Manufacturing and selling a computer inside a single country is called A) Domestic business. B) Global trade. C) Foreign market capitalization. D) International technology. Show Answer Correct Answer: A) Domestic business. 7. The economy performs best with minimal government interaction in the market. A) Free Trade. B) Globalization. C) Fair Trade. D) World Trade Organization (WTO). Show Answer Correct Answer: A) Free Trade. 8. In general, we can define the meaning of negotiation as..... A) The process of reaching agreement between two parties who have different views. B) One-way communication in requesting information regarding the need for goods or services. C) The argumentation process to win the competition. D) All answers are correct. Show Answer Correct Answer: A) The process of reaching agreement between two parties who have different views. 9. Discuss the advantages of free trade for a country's economy. A) Free trade promotes competition, lowers prices, and allows for efficient allocation of resources. B) Free trade hinders economic growth and development. C) Free trade leads to higher prices and less competition. D) Free trade results in inefficient allocation of resources. Show Answer Correct Answer: A) Free trade promotes competition, lowers prices, and allows for efficient allocation of resources. 10. The goods and services that a country produces are not planned by anyone. Production is determined by the interaction of supply and demand and signaled to producers through the price system. A) Market economy. B) Command economy. C) Mixed economy. D) None of above. Show Answer Correct Answer: A) Market economy. 11. All are the International Chamber of Commerce core services/activities include:except A) Working against political crime. B) Promoting the multilateral trading system. C) Setting rules and standards. D) Being an advocate for international business. Show Answer Correct Answer: A) Working against political crime. 12. What is the main objective of subsidies? A) To gain export markets. B) To provide protection to domestic producers against foreign competitors. C) To help domestic producers compete against low-cost foreign imports. D) To benefit consumers by reducing prices. Show Answer Correct Answer: C) To help domestic producers compete against low-cost foreign imports. 13. What is a CMR Document? A) A list of goods shipped to an importer. B) An International consignment that governs shipping merchandise by road. C) An agreement between exporter and importer to ship goods by air. D) A form that must be given to the pilot that trasports the merchandise. Show Answer Correct Answer: B) An International consignment that governs shipping merchandise by road. 14. The ..... was so big, you could walk inside it. A) Artificial. B) Cruise. C) Container. D) Mainland. Show Answer Correct Answer: C) Container. 15. Which of the following is NOT an advantage of importing goods? A) The option to produce specialized domestic goods. B) Protection of domestic jobs. C) Lower prices. D) Wider variety of goods. Show Answer Correct Answer: B) Protection of domestic jobs. 16. What is the potential impact of international trade on global environmental issues? A) International trade has no influence on global environmental issues. B) International trade can lead to the exchange of environmentally friendly technologies, encourage sustainable practices, and create economic incentives for environmental protection. C) International trade results in increased pollution and resource depletion. D) International trade has no correlation with environmental protection. Show Answer Correct Answer: B) International trade can lead to the exchange of environmentally friendly technologies, encourage sustainable practices, and create economic incentives for environmental protection. 17. What is meant by non-tariff trade barriers? A) Import duties must be paid by the importer. B) Quota restrictions on the amount of imports. C) Technical regulations and standards. D) Security restrictions in trading. Show Answer Correct Answer: C) Technical regulations and standards. 18. How much did world trade volume increase from 1990 to 2015? A) 2.5 times. B) 5.5 times. C) 4.5 times. D) 3.5 times. Show Answer Correct Answer: B) 5.5 times. 19. Efforts to develop economic activities based on innovative ideas and concepts of individual people in society are called..... A) Creative products. B) Creative economy. C) Creative energy. D) Creative industry. Show Answer Correct Answer: B) Creative economy. 20. Natural trade and free trade are the same A) False. B) True. Show Answer Correct Answer: A) False. 21. *Settles international trade disputes using mediation*Reduces trade barriers world-wide ..... A) WTO. B) USDA. C) MFN. D) NAFTA. Show Answer Correct Answer: A) WTO. 22. Complete:Greg ..... with the eBay seller and ended up saving $ 15 off the price of the guitar. A) Lemon. B) Miss out. C) Haggled. D) Split the difference. Show Answer Correct Answer: C) Haggled. 23. Which of the following is proof that international trade is beneficial? A) The fact that free nations choose to trade. B) The concept of comparative advantage. C) The fact that different regions in the United States specialize in economic activities. D) The concept of absolute advantage. Show Answer Correct Answer: A) The fact that free nations choose to trade. 24. Which of the following is a part of capital account? A) Private capital. B) Banking capital. C) Official capital. D) All the above. Show Answer Correct Answer: D) All the above. 25. Which of the following situations would most likely occur if the dollar's exchange value dropped in relation to the Japanese yen? A) Imported Japanese goods would become more expensive. B) Fewer Japanese tourists would travel to the US. C) The US would export fewer products to Japan. D) US citizens would be able to travel to Japan more cheaply. Show Answer Correct Answer: A) Imported Japanese goods would become more expensive. 26. Free trade agreement among Canada and the EFTA countries A) Canada-European Free Trade Association. B) Regional Trade Agreement. C) Trade Bloc. D) Multilateral Trade Agreement. Show Answer Correct Answer: A) Canada-European Free Trade Association. 27. A situation where a government does not attempt to influence through quotas or duties what its citizens can buy from another country A) Importation. B) Economies of Scale. C) Exportation. D) Free Trade. Show Answer Correct Answer: D) Free Trade. 28. The social rules and guidelines that prescribe appropriate behaviour in particular situations. A) Culture. B) Norms. C) Values. D) None of above. Show Answer Correct Answer: B) Norms. 29. ..... is a tax that a government places on certain imported products A) Tariff. B) Deal. C) Embargo. D) Quota. Show Answer Correct Answer: A) Tariff. 30. Exchanging one good or service for something else is called A) Export. B) Trade. C) Import. D) Produce. Show Answer Correct Answer: B) Trade. ← 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