This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 122 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 122 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... takes place when a company directly invests in properties such as plant and machinery in foreign countries with a view to undertaking production and marketing of goods and services in those countries. A) Export. B) FDI. C) FPI. D) JV. Show Answer Correct Answer: B) FDI. 2. All our experiences of International Trade in the Philippines EXCEPT A) Galleon Trade. B) Opium Trade. C) Legislated Trade Laws. D) War Rehabilitation after WWII. Show Answer Correct Answer: B) Opium Trade. 3. A trade agreement between Canada, Mexico, and the US, ....., has been a source of contention among many including our President. A) NAFTA. B) ABC. C) EU. D) WTO. Show Answer Correct Answer: A) NAFTA. 4. Trade deficit refers to the situation where A) Export of goods is less than the import of goods. B) Export of services is more than the import of services. C) Export of services is less than the import of services. D) Export of goods is more than the import of goods. Show Answer Correct Answer: A) Export of goods is less than the import of goods. 5. Why do a number of countries have an agreement with the Federal Reserve Bank of New York? A) To move money from one country to another. B) To make withdrawals. C) To hold their gold in safekeeping. D) To borrow money. Show Answer Correct Answer: C) To hold their gold in safekeeping. 6. What was the level of economic trade rebound during Q1 2021? A) Much lower than expectations . B) Aligning expectations. C) Lower than expected. D) More than Expected. Show Answer Correct Answer: D) More than Expected. 7. Which is NOT a benefit to open trade? A) More markets for business. B) Lower prices. C) Increased tariffs. D) More consumer choice. Show Answer Correct Answer: C) Increased tariffs. 8. Which Theory possesses the three general stages of product development? A) Heckscher-Ohlin Factor Endowment Theory. B) Export Base Theory. C) Endogenous Growth Theory. D) Product Cycle Theory & Linder's Theory of Representative Demand. Show Answer Correct Answer: D) Product Cycle Theory & Linder's Theory of Representative Demand. 9. When did The CPTPP be officially sign? A) In May 2017. B) In May 2018. C) In November 2017. D) In March 2018. Show Answer Correct Answer: D) In March 2018. 10. Current MERCOSUR members A) Argentina, Brazil, Mexico, Colombia. B) Bolivia, Brazil, Paraguay, Uruguay. C) Argentina, Brazil, Paraguay, Uruguay. D) Argentina, Brazil, Venezuela, Uruguay. Show Answer Correct Answer: C) Argentina, Brazil, Paraguay, Uruguay. 11. Which of the following was NOT listed as a benefit of international trade? A) Improves manufacturing of products. B) Boosts economy. C) Distributes wealth. D) Creates efficiency. Show Answer Correct Answer: C) Distributes wealth. 12. A ..... is a tax imposed by one country on the goods and services imported from another country A) Free-trade area. B) Tariff. C) Custom Union. D) Trade agreement. Show Answer Correct Answer: B) Tariff. 13. The following which is not the benefits of international trade are ..... A) Obtains goods that are not produced domestically. B) Highly dependent on imported goods. C) Friendly relations between countries are established. D) Earn a profit. Show Answer Correct Answer: B) Highly dependent on imported goods. 14. What is trade liberalization? A) Reducing the amount of goods that can be traded between nations. B) Increasing taxes on imported goods. C) Removal or reduction of restrictions on the free exchange of goods between nations. D) Imposing more restrictions on the exchange of goods between nations. Show Answer Correct Answer: C) Removal or reduction of restrictions on the free exchange of goods between nations. 15. NAFTA is a 1994 ..... between the United States, Mexico, and Canada. A) Quota. B) Tariff. C) Exchange rate. D) Free trade agreement. Show Answer Correct Answer: D) Free trade agreement. 16. What is the foreign exchange market? A) A market where commodities like gold and oil are traded. B) A market where currencies of different countries are bought and sold. C) A market where goods and services are traded between nations. D) A market where stocks and bonds are traded. Show Answer Correct Answer: B) A market where currencies of different countries are bought and sold. 17. Collaboration between competitors is fashionable. A) True. B) False. Show Answer Correct Answer: A) True. 18. The data below shows how much Jessie and Jane can produce given standard baking ingredients. Which statement is true? Cookies CakesJesse 10 2 Jane 20 5 A) Jane has comparative advantage in cookies. B) Jane has comparative advantage in cakes. C) Jessie has comparative advantage in both goods. D) Jessie has absolute advantage in both goods. Show Answer Correct Answer: B) Jane has comparative advantage in cakes. 19. Which one of these product is in the decline stage of the product life cycle? A) Smartphone Apps. B) Music CDs. C) Smart Televisions. D) Online movie and game tickets. Show Answer Correct Answer: B) Music CDs. 20. This department supervises the payment of invoices A) Finances. B) Accountant. C) Financial manager. D) None of above. Show Answer Correct Answer: A) Finances. 21. How does a strong pound affect imports? A) They are cheaper. B) They are dearer. C) They stay the same. D) None of above. Show Answer Correct Answer: A) They are cheaper. 22. What social impact has globalization had on global population mobility? A) Increased regional homogeneity. B) Isolated people within their home countries. C) Facilitated the movement of people across borders. D) Reduced cross-cultural interactions. Show Answer Correct Answer: C) Facilitated the movement of people across borders. 23. What happens when a country is importing more goods and services than it is exporting and leads to debt? A) Trade Surplus. B) Trade Failure. C) International Trade. D) Trade Profits. Show Answer Correct Answer: B) Trade Failure. 24. *If an exchange rate is LESS THAN 1, then the dollar is ..... than that currency and those foreign goods and services cost us ..... A) Stronger; more. B) Stronger; less. C) Weaker; more. D) None of above. Show Answer Correct Answer: C) Weaker; more. 25. An Australian electrical retailer decides to buy products from an overseas business. This is a ..... and ..... A) Injection, import. B) Leakage, import. C) Injection, export. D) Leakage, export. Show Answer Correct Answer: B) Leakage, import. 26. This outlines the concept of Most-Favored Nation (FMN) treatment and states that trade concessions granted to one member are applied immediately and without conditions to all other members. A) Article 4. B) Article 2. C) Article 3. D) Article 1. Show Answer Correct Answer: D) Article 1. 27. The basic elements of subsidies under the SCM Agreement are, except: A) Provide benefits. B) By the Government or Public Agency. C) Involving multinational companies. D) Financial contribution. Show Answer Correct Answer: C) Involving multinational companies. 28. How can trade agreements increase international trade? A) By erecting trade barriers. B) By reducing exports. C) By banning imports. D) By preventing trade wars. Show Answer Correct Answer: D) By preventing trade wars. 29. What was the first country that reactivated its economy? A) Peru. B) China. C) Colombia. D) Spain. Show Answer Correct Answer: B) China. 30. The forms of non-tariff barriers in the customs sector are: A) Customs valuation policy. B) Import licensing. C) Terms of origin of goods. D) All true. Show Answer Correct Answer: D) All 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