This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 123 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 123 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Any law passed to limit free trade between nations is called a trade A) Barrier. B) Embargo. C) Embargo. D) Cartel. Show Answer Correct Answer: A) Barrier. 2. Scenario:Chuck Praeger, Global EntrepreneurChuck Praeger has made a name for himself by selling high-quality golf equipment to customers in Europe. He would like to expand his business into the Pacific Rim countries and has therefore, begun making inquiries into potential distributors.Chuck is convinced that his golf equipment will sell itself. But he is preparing a special presentation for Asian customers because he wants to make a good first impression. As an expert in culture of the Pacific Rim countries, which of the following would be your most likely advice to Chuck? A) Be sure to have a tight legal contract ready, to avoid product piracy problems. B) Aggressive salesmanship is unlikely to work in Pacific Rim countries. C) Have plenty of English-language business cards to pass around because most Asians know English and like the language. D) Avoid the confusion introduced by third-party contacts. Show Answer Correct Answer: B) Aggressive salesmanship is unlikely to work in Pacific Rim countries. 3. Which of the following is likely to occurfollowing the depreciation of the United Statesdollar? A) United States imports will increase. B) United States exports will increase. C) Demand for the United States dollarwill decrease. D) United States demand for foreigncurrencies will increase. E) United States goods will become moreexpensive in foreign markets. Show Answer Correct Answer: B) United States exports will increase. 4. The part of a sales contract that defines who is responsible for paying for the financial protection of the goods in case of loss during shipment is A) Arbitration. B) Warranty. C) Claim. D) Insurance. Show Answer Correct Answer: D) Insurance. 5. Which countries are not making progress in using non-renewables and in reducing pollution? A) Those countries in the highly developed stages of industrialization. B) Those countries that have bypassed the five stages of economic growth. C) Those countries that have strong, wealthy economies. D) Those countries in the early stages of industrialization. Show Answer Correct Answer: D) Those countries in the early stages of industrialization. 6. One of the many goods exported by Indonesia from the industrial sector is ..... A) Television. B) Mobile. C) Textiles. D) Building material. Show Answer Correct Answer: C) Textiles. 7. Taxes on imports which are levied specifically to raise money are called A) Revenue embargoes. B) Protective embargoes. C) Revenue embargoes. D) Revenue tariffs. Show Answer Correct Answer: D) Revenue tariffs. 8. Who would say the following? "Industries could become too reliant on government protections and not want to give them up." A) Free Trader. B) Protectionist. Show Answer Correct Answer: A) Free Trader. 9. When the US places higher tariffs on imported cars, what happens? A) SUPPLY DECREASES BECAUSE OF THE HIGHER COST OF PRODUCTION FOR THE FOREIGN PRODUCER. B) Wrong answer. C) Wrong answer. D) None of above. Show Answer Correct Answer: A) SUPPLY DECREASES BECAUSE OF THE HIGHER COST OF PRODUCTION FOR THE FOREIGN PRODUCER. 10. A tax imposed on imported goods: A) Tariff. B) Quota. C) Embargo. D) Boycott. Show Answer Correct Answer: A) Tariff. 11. What does the theory of comparative advantage assume about technological advancements? A) It assumes that every country should specialize in producing the good with the lowest opportunity cost. B) It assumes that countries produce identical goods. C) It assumes that everyone has the same knowledge of prices and quantities in the market at the same time. D) It assumes that technology remains constant. Show Answer Correct Answer: D) It assumes that technology remains constant. 12. Copyright laws are supposed to protect ..... a creation whose source is someone's intellect, rather than physical property. A) Intellectual knowledge. B) Intellectual information. C) Telecommunications. D) Intellectual property. Show Answer Correct Answer: D) Intellectual property. 13. Other goes over is used for A) Input questions. B) Output questions. Show Answer Correct Answer: B) Output questions. 14. History and experience have shown that economies become most efficient at converting resources into desired products when there is A) Democratic governments. B) Strong armies. C) Competition. D) Government market regulation. Show Answer Correct Answer: D) Government market regulation. 15. Refer to the cost advantage experienced by a firm when it increases its level of output A) External economies of scale. B) Internal economies of scale. C) Economies of scale. D) Perfectly competitive market. Show Answer Correct Answer: C) Economies of scale. 16. What is the challenge for policymakers regarding international trade? A) To create barriers to international trade. B) To maximize exports and minimize imports. C) To assist those who have been disadvantaged with support and training for new jobs. D) To judge a country's power by how much gold it can amass. Show Answer Correct Answer: C) To assist those who have been disadvantaged with support and training for new jobs. 17. WHAT ARE THE NEGATIVE IMPACT OF TARIFFS A) MORE CHOICE. B) LOWER PRICES. C) LACK OF DOMESTIC INNOVATION. D) GREATER CHOICE. Show Answer Correct Answer: C) LACK OF DOMESTIC INNOVATION. 18. Bank charges are often divided into the following groups:except A) Standard fees for specified services. B) Payment charges. C) Handling charges. D) Risk commissions. E) Insurance premium. Show Answer Correct Answer: E) Insurance premium. 19. According to Heckscher-Ohlin theorem, international trade is determined by A) Comparative advantage. B) Consumer preferences. C) Relative factor endowments. D) The existence of trade barriers. Show Answer Correct Answer: C) Relative factor endowments. 20. If a business is locally based it is easier to compete in foreign markets, why does this happen? A) Better access to raw materials reducing shipping costs. B) Purchasing economies of scale. C) Increased costs. D) Decreased profits. Show Answer Correct Answer: A) Better access to raw materials reducing shipping costs. 21. A payment in which the importer's bank guarantees payment to the exporter is A) Cash in advance. B) Letter of credit. C) A sales contract. D) A guarantee letter. Show Answer Correct Answer: B) Letter of credit. 22. Protests and attempts to achieve organizational goals through other people are called..... A) Planner. B) Manager. C) Pusher. D) Executor. Show Answer Correct Answer: B) Manager. 23. Liberalism is the dominant approach in A) Northern economics. B) World economics. C) Western economics. D) None of above. Show Answer Correct Answer: C) Western economics. 24. ..... is when a nation or individual concentrates its productive efforts on producing a limited variety of goods A) Tread offs. B) Specialization. C) Exchange rate. D) Balance of trade. Show Answer Correct Answer: B) Specialization. 25. Which of the following is a cost of international trade A) More domestic production for the domestic market. B) More variety of goods for domestic consumers. C) Less competition for domestic firms. D) Fewer domestic jobs available. Show Answer Correct Answer: D) Fewer domestic jobs available. 26. The ..... lists the exact quantity, value, and specifications of the merchandise. A) Pro forma invoice. B) Letter of credit. Show Answer Correct Answer: A) Pro forma invoice. 27. Foreign goods shipped into a country or region A) Import. B) Export. C) Foreign trade. D) World trade. Show Answer Correct Answer: A) Import. 28. Due to Covid 19, Global GDP collapsed and declined at what rate? A) 5%. B) 8%. C) 13%. D) 17%. Show Answer Correct Answer: C) 13%. 29. Since all exchanges (trade) in a market economy are voluntary, how do we know that the exchanges will probably benefit all participants? A) It was ordered by Adam Smith and everything in a market economy must follow his rules. B) Since it is voluntary and everyone's motivation is self-interest, no one would buy or sell if it was not in her or his best interest to do so. C) In market economies, the law demands that no one suffer from any economic exchange. D) We do not know that the exchanges will benefit all participants. It is a social science and such things are just not that definite. Show Answer Correct Answer: A) It was ordered by Adam Smith and everything in a market economy must follow his rules. 30. Which theory suggests that a country should produce and export those goods and services for which it is relatively more productive than other countries and import those goods and services for which other countries are relatively more productive? A) Relative advantage. B) Absolute advantage. C) Comparative advantage. D) Specialization of countries. Show Answer Correct Answer: C) Comparative advantage. ← 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