This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 127 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 127 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. To conduct training or other programmes relating to productivity, quality, management and entrepreneurship; A) TREES. B) MPC. C) MATRADE. D) WHAT. Show Answer Correct Answer: B) MPC. 2. Which of the following wrong about benefit of International Trade? A) More variety for customers. B) Competitive pricing. C) Benefits from Currency Exchange. D) All are correct. Show Answer Correct Answer: D) All are correct. 3. What is one limitation of the theory of comparative advantage regarding the assumption of perfect information about prices and quantities in the market? A) It assumes that technology remains constant. B) It assumes that everyone has the same knowledge of prices and quantities in the market at the same time. C) It assumes that countries produce identical goods. D) It assumes that every country should specialize in producing the good with the lowest opportunity cost. Show Answer Correct Answer: B) It assumes that everyone has the same knowledge of prices and quantities in the market at the same time. 4. What are dividends? A) Sums of money paid to banks as interest. B) Sums of money paid to governments as taxes. C) Sums of money paid to shareholders out of earnings. D) Sums of money paid to workers as bonuses. Show Answer Correct Answer: C) Sums of money paid to shareholders out of earnings. 5. Instead ..... Chinese labor, the United States imports goods that were produced with Chinese labor. A) Of importing. B) To import. C) In exporting. D) None of above. Show Answer Correct Answer: A) Of importing. 6. Countries put a limit on trade to protect ..... A) Jobs. B) Climate. C) Flag. D) Reputation. Show Answer Correct Answer: A) Jobs. 7. The authority or organization that controls the flow of goods in and out of a country. A) Customs. B) Manufacturer. C) Carrier. D) Fright forwarder. Show Answer Correct Answer: A) Customs. 8. What is not a domestic policy issue? A) Crime. B) Trade. C) Economy. D) Education. Show Answer Correct Answer: B) Trade. 9. A good or a service bought in one country that was produced in another is an ..... A) Export. B) Import. Show Answer Correct Answer: B) Import. 10. What is an example of a Customs compliance audit? A) Evaluating Financial Records. B) Preparing Tax Reports. C) Verifying Customs Amounts Due. D) Checking Product Quality. Show Answer Correct Answer: C) Verifying Customs Amounts Due. 11. How do exchange rates impact international trade? A) They have no influence on trade costs. B) They affect the cost of imports and exports. C) They solely regulate trade agreements. D) They restrict trade barriers. Show Answer Correct Answer: B) They affect the cost of imports and exports. 12. International mining companies came to the Malay Peninsula to, , , , , , , , , the region's massive tin deposits A) Distill. B) Haggle. C) Extract. D) Shuttle. Show Answer Correct Answer: C) Extract. 13. Adam Smith's theory of absolute cost advantage in international trade was evolved as a strong reaction of the ..... mercantilist views on international trade. A) Bureaucratic. B) Liberal. C) Restrictive and protectionist. D) Anarchic. Show Answer Correct Answer: C) Restrictive and protectionist. 14. Comparative Advantage is about A) Making the product quickest. B) Making the product to the highest quality. C) Making the product where it is most efficient. D) None of above. Show Answer Correct Answer: C) Making the product where it is most efficient. 15. Planned economy is also called as Command economy A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 16. People, Services, Investments and goods can move freely between Spain and Germany A) True. B) False. Show Answer Correct Answer: A) True. 17. The US can produce 1 ton of sugar using 4 acres of land, or they can produce 1 ton of avocados using 6 acres. Ecuador can produce 1 ton of sugar using 5 acres of land or 1 ton of avocados using 4 acres. Which country should produce avocados? A) Ecuador. B) US. C) Not enough information. D) None of above. Show Answer Correct Answer: A) Ecuador. 18. It is when the country's rationale behind why firms expand internationally can basically be explained in terms of the pursuit of additional gains and be obtained in the domestic market ..... A) ECONOMIC MOTIVES. B) DEFENSIVE MOTIVES. C) STRATEGIC MOTIVES. D) MARKET MOTIVES. Show Answer Correct Answer: D) MARKET MOTIVES. 19. Import trade is a type of international trade which involves ..... of goods and services from another country. A) Selling. B) Purchasing. C) Trading. D) Manufacturing. Show Answer Correct Answer: B) Purchasing. 20. Suppose that there are two factors, capital and land, and that the United States is relatively land endowed while the European Union is relatively capital-endowed. According to the Heckscher-Ohlin model A) European landowners should support US-European free trade. B) European capitalists should support US-European free trade. C) All capitalists in both countries should support free trade. D) All landowners should support free trade. Show Answer Correct Answer: B) European capitalists should support US-European free trade. 21. For maritime transport A) Free Alongside Ship (FAS) Free On Board (FOB) Cost and Freight (CFR) Cost, Insurance, and Freight (CIF). B) Ex-Works (EXW) Free Carrier (FCA) Carriage Paid To (CPT) Carriage and Insurance Paid To (CIP) Delivered At Place (DAP Delivered at Place Unloaded (DPU) Delivered Duty Paid (DDP) Free Alongside Ship (FAS) Free On Board (FOB) Cost and Freight (CFR) Cost, Insurance, and Freight (CIF). C) Ex-Works (EXW) Free Carrier (FCA) Carriage Paid To (CPT) Carriage and Insurance Paid To (CIP) Delivered At Place (DAP Delivered at Place Unloaded (DPU) Delivered Duty Paid (DDP). D) None of them. Show Answer Correct Answer: A) Free Alongside Ship (FAS) Free On Board (FOB) Cost and Freight (CFR) Cost, Insurance, and Freight (CIF). 22. The ability to produce more of a given product using a given amount of resources. A) Absolute advantage. B) Comparative advantage. Show Answer Correct Answer: A) Absolute advantage. 23. Goods and services brought in from another country is an A) Import. B) Export. Show Answer Correct Answer: A) Import. 24. Which of the following trading block uses single currency? A) NAFTA. B) EU. C) CIS. D) SAFTA. Show Answer Correct Answer: B) EU. 25. Selling goods to a foreign country is called A) IMPORT. B) ENTREPOT. C) EXPORT. D) RE-EXPORT. Show Answer Correct Answer: C) EXPORT. 26. A protective tariff is used to do which of the following? A) Expand trade. B) Increase revenue. C) Gain a comparative advantage. D) Give inefficient domestic industries an advantage. Show Answer Correct Answer: D) Give inefficient domestic industries an advantage. 27. What are the main functions of the foreign exchange market? A) Facilitate currency conversion, provide liquidity, determine exchange rates, enable hedging and speculation. B) Facilitate stock trading, provide investment advice, determine interest rates, enable borrowing and lending. C) Facilitate commodity trading, provide insurance services, determine inflation rates, enable mergers and acquisitions. D) Facilitate bond trading, provide accounting services, determine stock prices, enable tax planning. Show Answer Correct Answer: A) Facilitate currency conversion, provide liquidity, determine exchange rates, enable hedging and speculation. 28. Embargoes are used to help countries. A) False. B) True. Show Answer Correct Answer: A) False. 29. What is an example of a service provided by the transportation and logistics industry? A) Airline ticket sales. B) Cashless payments. C) Data analysis services. D) Giftcard printing. Show Answer Correct Answer: A) Airline ticket sales. 30. Which of the following is the best example of foreign direct investment? A) The United States sending earthquake relief aid to Haiti. B) A Japanese software company buying a factory in the United States. C) The Chinese government buying United States Treasury bonds. D) A United States citizen buying Mexican pesos. E) A business in the United States selling machinery to a company in Japan. Show Answer Correct Answer: B) A Japanese software company buying a factory in the United States. ← 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