This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 126 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 126 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which one of the following is a cause of globalisation A) Containerisation. B) Firms experiencing diseconomies of scale. C) An increase in tariffs. D) A decrease in the number of global trade blocks. Show Answer Correct Answer: A) Containerisation. 2. Which of the following period had experienced biggest fall in world manufacturing. A) Covid-19 2020 Crisis . B) 2008-2009 Financial Crisis. Show Answer Correct Answer: B) 2008-2009 Financial Crisis. 3. Assume that there are two countries, A and B, and that they can both produce two goods, X and Y. The theory of comparative advantage predicts that: A) Trade can only take place if country A has an absolute advantage in producing one of the goods, and country B has an absolute advantage in producing the other. B) Trade can take place even if country A has an absolute advantage in both providing that B chooses to specialize in the good in which it has the least comparative disadvantage, and A specializes in the one in which it has the greater comparative advantage. C) Trade between A and B will only take place if both countries are at a comparatively similar stage in the development of their economies. D) None of the above. Show Answer Correct Answer: B) Trade can take place even if country A has an absolute advantage in both providing that B chooses to specialize in the good in which it has the least comparative disadvantage, and A specializes in the one in which it has the greater comparative advantage. 4. Country X trades with only two countries, Nigeria and Malaysia. 80% of Country X's trade is with Nigeria and 20% is with Malaysia. The original value of the trade-weighted exchange rate index is 100. The value of Country X's currency against the Nigerian Naira rises by 10%. The value of Country X's currency against the Malaysian Ringgit rises by 50%. What will be the value of Country X's new trade-weighted exchange rate index?A 115 B 118 C 130D 160 A) C. B) B. C) D. D) A. Show Answer Correct Answer: B) B. 5. Outline type of risk that is unique to a country like Syria, North Korea or Egypt. A) There are two instances where sovereign risk can happen. First, the importer's country may suddenly be at war and thus prohibits any outflow of currency from their country.Second. there are possibilities that the government of the buyer's country imposing exchange control regulation because of political reason. B) As a result of political changes or instability in a country. Instability could stem from a change in government, legislative bodies, other foreign policy makers or military control. C) Business infrastructure in foreign markets will be at different levels of development. This may well have an impact on your ability to get your products to that market. It is important to research your new target market and understand how goods are moved within the country before you commit to that market. D) 1& 3. E) 1 & 2. Show Answer Correct Answer: E) 1 & 2. 6. Economic and political risks can be lessened because risk is spread from different countries. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 7. Native to a country, not foreign; relating to the life or affairs of a household. A) Domestic. B) Domesstick. C) Domestic. D) Damestic. Show Answer Correct Answer: A) Domestic. 8. Which country is not a part of ASEAN? A) Indonesia. B) Russia. C) Philippines. D) Vietnam. Show Answer Correct Answer: B) Russia. 9. It is the existence and affordability of a communication and transportation network A) INTERDEPENDENCE. B) ECONOMIC INTERDEPENDENCE. C) CONNECTIVITY. D) CONNECTION. Show Answer Correct Answer: C) CONNECTIVITY. 10. Aggregate productivity is a key determinant of the nation's ( ). A) Standard of living. B) Way of living. C) Living quality. D) Production quality. Show Answer Correct Answer: A) Standard of living. 11. England, France, Belgium and 12 other countries belong to a trading bloc called the ..... Union. A) Joint. B) Trade. C) European. D) Foreign. Show Answer Correct Answer: C) European. 12. Mercantilism is an economic theory that advocates government regulation of international trade to generate wealth and strengthen national power A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 13. How has international trade increased the quality and productivity of manufacturing as stated in the presentation? A) Increased manufacturing budgets. B) Lower rate of error. C) Competition with other countries. D) Higher rate of imports. Show Answer Correct Answer: C) Competition with other countries. 14. What is not a method the USA carries out foreign policy? A) Appointing ambassadors. B) Treaties. C) Trade. D) Alliances. Show Answer Correct Answer: D) Alliances. 15. Globalisation is good because of an ..... in standard of living, but is bad because there is a ..... in local cultures and traditions A) Increase / decrease. B) Decrease / increase. C) Decrease / decrease. D) Increase / increase. Show Answer Correct Answer: A) Increase / decrease. 16. Labourers are less mobile between countries. A) Monetary units or currency. B) Immobility of factors of production. C) Availability of natural resources. D) None of above. Show Answer Correct Answer: B) Immobility of factors of production. 17. The condition that exists when someone can produce a good or service at a lower opportunity cost than someone else. A) Comparative Advantage. B) Absolute Advantage. Show Answer Correct Answer: A) Comparative Advantage. 18. What is the purpose of NAFTA? A) To increase trade between the countries of North America. B) To help Canada become a more independent nation. C) To eliminate the environmental issues between the nations involved. D) None of above. Show Answer Correct Answer: A) To increase trade between the countries of North America. 19. Other countries can undermine unilateral trade sanctions. A) False. B) True. Show Answer Correct Answer: B) True. 20. Assume that the terms from trade are 1.5 coffee for 1 tea. Who benefits from this trade? A) Peru. B) Colombia. C) Neither. D) Both. Show Answer Correct Answer: D) Both. 21. A vendor of parts or services for another company A) Purchasing. B) Carrier. C) Supplier. D) None of above. Show Answer Correct Answer: C) Supplier. 22. What is the purpose of promotional techniques in different countries? A) To use the same promotional techniques in all countries. B) To impose Western culture on other countries. C) To adapt to local cultures. D) To ignore local cultures. Show Answer Correct Answer: C) To adapt to local cultures. 23. What has historically played a major role in the economic development of the Australian economy? A) Trade and foreign investment. B) Domestic production only. C) Government subsidies. D) Labor unions. Show Answer Correct Answer: A) Trade and foreign investment. 24. What reduces the tendency toward specialization? A) Existence of Two Factor of Production. B) Existence of Three Factor of Production. C) Existence of Four Factor of Production. D) All options are correct. Show Answer Correct Answer: D) All options are correct. 25. The financial risks are generally intimately connected to the structure of the ..... A) Transportation route. B) Competitive situation. C) Procedures. D) Terms of payment. Show Answer Correct Answer: D) Terms of payment. 26. What happens when a country's currency appreciates? A) Imports become cheaper and exports become more expensive. B) Imports become more expensive and exports become cheaper. C) Both imports and exports become cheaper. D) Both imports and exports become more expensive. Show Answer Correct Answer: A) Imports become cheaper and exports become more expensive. 27. What is the term for a government policy and laws restricting international trade? A) Protectionism. B) Multilateral. C) Import restriction. D) Export subsidy. Show Answer Correct Answer: A) Protectionism. 28. A limit on the amount of a good that can be purchased from a foreign nation. A) Import quota. B) Export quota. Show Answer Correct Answer: A) Import quota. 29. Companies such as Coca-Cola and Disney have achieved growth through: A) Licensing. B) Joint-ventures. C) Piggybacking. D) Exporting. Show Answer Correct Answer: A) Licensing. 30. International trade means trade between ..... A) Countries. B) Provinces. C) States. D) Regions. Show Answer Correct Answer: A) Countries. ← 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