This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 125 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 125 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Thai Bahts = 5 Danish Krones2019-15 Thai Bahts = 5 Danish Krones Which of the following is true given the change in currency value above? A) Thai exports to denmark increase. B) Thai travel to denmark increases. C) Danish exports to Thailand increase. D) Nothing happens. Show Answer Correct Answer: A) Thai exports to denmark increase. 2. A tax of 15 percent per imported item would be an example of a (an): A) To the value of the tariff. B) Effective tariff. C) Specific tariff. D) Compound tariff. Show Answer Correct Answer: A) To the value of the tariff. 3. What is one of the principal use of gravity models? A) Creating Anomalies in Trade. B) Hiding Anomalies in Trade. C) Emphasizing Anomalies in Trade. D) Identifying Anomalies in Trade. Show Answer Correct Answer: D) Identifying Anomalies in Trade. 4. Which of the following is NOT an example of a trade barrier? A) Political. B) Cultural. C) Physical. D) Emotional. Show Answer Correct Answer: D) Emotional. 5. Trade between two or more than two countries is known as ..... A) Unilateral Trade. B) International Trade. C) Internal Business. D) External Trade. Show Answer Correct Answer: B) International Trade. 6. Which country did the United States put an embargo on in 1980? A) Africa. B) Mexico. C) China. D) The Soviet Union. Show Answer Correct Answer: D) The Soviet Union. 7. What type of exchange rate allows market forces to determine its exchange rate? A) Managed Exchange Rates. B) Adam Smith Exchange Rates. C) Fixed Exchange Rates. D) Floating Exchange Rates. Show Answer Correct Answer: D) Floating Exchange Rates. 8. What happens to the price of oil when OPEC countries decide to limit production? A) Prices rise. B) Prices fall. C) Prices stay the same. D) Oil stops being sold. Show Answer Correct Answer: A) Prices rise. 9. Which of the following are reasons for trading internationally? A) Economies of scale. B) Easy to trade internationally. C) Access to new markets can only sale one product. D) Dont have to pay tax. Show Answer Correct Answer: A) Economies of scale. 10. Which of the following is a result of the transportation and logistics industry's role in international trade and commerce? A) Supply chain optimization. B) Optimized advertising campaigns. C) Security consulting services. D) IT solutions for small businesses. Show Answer Correct Answer: A) Supply chain optimization. 11. The North American Free Trade Agreement proposed free trade between the United States and which of the following? A) Brazil and Mexico. B) The European Union. C) Canada and Mexico. D) Central American countries. Show Answer Correct Answer: C) Canada and Mexico. 12. Which of the following is not a benefit to free trade? A) Specialization. B) Uses of absolute advantages. C) Increases efficiency. D) Uses comparative advantage. Show Answer Correct Answer: B) Uses of absolute advantages. 13. ..... is a type of international trade which involves the sale of goods or services produced in one country to another country. A) Export. B) Entrepot. C) Internal. D) Import. Show Answer Correct Answer: A) Export. 14. According to mercantilism, what should a country's primary goal be? A) Protecting citizens from unfair labor practices. B) Encouraging imports to prevent resource depletion. C) Promoting exports to enlarge gold and silver holdings. D) Ensuring sufficient labor for low-wage jobs in the textile industry. Show Answer Correct Answer: C) Promoting exports to enlarge gold and silver holdings. 15. A nation's differences in values, culture, economic structures, institutions and history all contribute to competitive success according Porters diamond theory. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 16. The key elements of MFN are: A) Similar products (like-products). B) Advantage (advantage), goodness (favor), and privilege (privilege). C) Immediately (immediately) and unconditionally (unconditionally). D) All are correct. Show Answer Correct Answer: D) All are correct. 17. Pakistan developed an FTA with Malaysia in ..... A) 2002. B) 2004. C) 2008. D) None of above. Show Answer Correct Answer: C) 2008. 18. Foreign firms need to maintain a product quality based on the standard of each country they operate in. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 19. International trade includes A) Import. B) Export. C) Entrepot. D) All of the above. Show Answer Correct Answer: D) All of the above. 20. Government rules that block or inhibit international trade between countries. A) Protectionism. B) Exchange rate. C) Subsidies. D) Barriers to trade. Show Answer Correct Answer: D) Barriers to trade. 21. Revenue tariffs are A) All are revenue tariffs. B) Applied to a good that is typically not produced in the domestic country, and they are designed to raise revenue for the domestic government. C) Revenue tariffs tend to be fairly low (Not too costly). D) None of above. Show Answer Correct Answer: A) All are revenue tariffs. 22. Leads to lower living standards A) Protectionism. B) Free Trade. Show Answer Correct Answer: B) Free Trade. 23. What has international trade and foreign policy not formed? A) Internationalism. B) Global interdependence. C) Free trade. D) Imports & exports. Show Answer Correct Answer: D) Imports & exports. 24. Trade between different regions or countries is called: A) Domestic trade. B) International trade. C) Balance of trade. D) European Union. Show Answer Correct Answer: B) International trade. 25. A Vietnamese shoe company imports all materials used to produce shoes from a Taiwanese company. It uses all of those materials to produce shoes and then exports back finished shoes to that Taiwanese company. This transaction is considered as A) Re-export. B) Export. C) International processing. D) Switch trade. Show Answer Correct Answer: B) Export. 26. How are exchange rates primarily determined? A) By the forces of supply and demand. B) By the president of each country. C) The WTO (world trade organization) sets them. D) None of above. Show Answer Correct Answer: A) By the forces of supply and demand. 27. International trade is based on which of the following principles? A) Principle of Comparative advantage. B) It should be mutually beneficial to the trading partners. C) Complimentarity and Specialisation of skills. D) All of these. Show Answer Correct Answer: D) All of these. 28. Resources available = 200 units for each country Production in GhanaCocoa = 10 tonsRice = 5 tons Production in South KoreaCocoa = 2.5 tonsRice = 10 tons Question:Which country should specialize in producing Cocoa? A) Ghana. B) South Korea. Show Answer Correct Answer: A) Ghana. 29. In certain situations and conditions, the mechanism that can be used by WTO member countries to waive the implementation of WTO provisions based on the Marrakesh Agreement is called: A) Security exceptions. B) Waiver. C) Balance of payments. D) All wrong. Show Answer Correct Answer: B) Waiver. 30. In 1999, the US announced trade sanctions worth $ 116.8 million, targeting goods from France, Germany, Italy and Denmark. The sanctions were in retaliation for a ban on US hormone-treated beef by which organization? A) NAFTA. B) EU. C) WTO. D) ASEAN. Show Answer Correct Answer: B) EU. ← 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