This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 129 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 129 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When you state the price of a nation's currency in the terms of another nation, it is called what? A) Foreign exchange rate. B) Foreign exchange balance. C) Foreign exchange credit. D) None of above. Show Answer Correct Answer: A) Foreign exchange rate. 2. When a country looks at the opportunity cost to produce an item and chooses to produce those things they can make better than other nations. A) Comparative advantage. B) Absolute advantage. C) Trade advantage. D) None of above. Show Answer Correct Answer: A) Comparative advantage. 3. The North American Free Trade Agreement has resulted in the loss of many American jobs and a decline in trade. A) False. B) True. Show Answer Correct Answer: A) False. 4. SAFTA came into existence in year ..... A) 1986. B) 1976. C) 2006. D) 1996. Show Answer Correct Answer: C) 2006. 5. If I am better at all types of production, I have the ..... in all forms of prodcution. A) Comparative Advantage. B) Specialization. C) Absolute Advantage. D) Developed nation. Show Answer Correct Answer: C) Absolute Advantage. 6. I would be grateful if you could let me have a detailed ..... including prices and delivery terms. A) Order. B) Term. C) Quotation. D) Offer. Show Answer Correct Answer: B) Term. 7. A key to trading is specialization. Which of the following in an incorrect association between a country and what they specialize in producing. A) Saudi Arabia-oil. B) Honduras-bananas. C) Japan-electronic devices. D) All the above are correct associations between a country and what they specialize in producing. Show Answer Correct Answer: D) All the above are correct associations between a country and what they specialize in producing. 8. A U.S. auto manufacturer plans to relocate plant operations to Mexico as a result of the North American Free Trade Agreement (NAFTA). Which criticism of free trade agreements would be based on this relocation? A) The demand for U.S. automobiles will decrease. B) The cost for producing U.S. automobiles will increase. C) U.S. automotive designers will have to create more efficient cars. D) U.S. automotive factory workers will have to compete with foreign workers. Show Answer Correct Answer: D) U.S. automotive factory workers will have to compete with foreign workers. 9. What is the purpose of free trade agreements? A) To minimize risks. B) To reduce barriers to imports and exports between countries. C) To control international trade. D) To impose trade restrictions. Show Answer Correct Answer: B) To reduce barriers to imports and exports between countries. 10. What is the principle that states should specialize in trading goods that they produce with the greatest relative efficiency and at the lowest relative cost? A) Balance of trade. B) Protectionism. C) Comparative advantage. D) Autarky. Show Answer Correct Answer: C) Comparative advantage. 11. What are quotas? A) Quantitative limit on the sale of a local good in an economy. B) Quantitative limit on the sale of a foreign good in an economy. C) Unlimited sale of a foreign good in an economy. D) None of above. Show Answer Correct Answer: B) Quantitative limit on the sale of a foreign good in an economy. 12. On way in which a government can intervene in order to maintain the value of a falling exchange rate is to A) Reduce domestic interest rates. B) Purchase foreign exchange for its reserves. C) Increase domestic inflation. D) Sell its foreign exchange reserves. Show Answer Correct Answer: D) Sell its foreign exchange reserves. 13. Japan's leading commodity A) Mobil. B) Goat. C) Cheese. D) Rice. Show Answer Correct Answer: A) Mobil. 14. When the economies of multiple countries rely on each other, it is called A) A mutual partnership. B) A unified trading block. C) Economic interdependence. D) Isolationism. Show Answer Correct Answer: C) Economic interdependence. 15. The U.S. requires that all imported goods be marked with the name in English of its country of origin A) Tariff. B) Quota. C) Standard. D) Subsidy. E) Embargo. Show Answer Correct Answer: C) Standard. 16. The relationship between customers and suppliers as..... A) Development of new services. B) Core process. C) Order fulfillment. D) Product development. Show Answer Correct Answer: C) Order fulfillment. 17. Which of these factors have influenced globalisation? A) High taxes and investment restrictions. B) Communication systems and the internet. C) Poor standard of living and unemployment. D) None of above. Show Answer Correct Answer: B) Communication systems and the internet. 18. President Trump has enacted tariffs against China and a lot of people worried that China might retaliate and enact tariffs against the U.S. What is this event called? A) A trade war. B) A misallocation of recources. C) A national security issue. D) A loss of domestic jobs. Show Answer Correct Answer: A) A trade war. 19. What might cause the balance on the current account of Mauritius to improve? A increased purchases of coffee from Kenya B increased transport of Mauritian goods in Greek ships C increased spending by Mauritians on holidays in South Africa D increased spending by tourists in Mauritian hotels A) D. B) A. C) B. D) C. Show Answer Correct Answer: A) D. 20. Who should export brooms? A) Ravenclaw. B) Gryffindor. Show Answer Correct Answer: A) Ravenclaw. 21. Domestic industries may be hurt by trade and some industries may need to be maintained even if they are not cost effective for reasons such as national security or defense. A) False. B) True. Show Answer Correct Answer: B) True. 22. Organizational structures that are widely used in various organizations include..... A) Dysfunctional. B) Hierarchy. C) Functional. D) Departmental. Show Answer Correct Answer: C) Functional. 23. Who must sign a Bill of Lading? A) The captain of the vessel. B) Any of the mentioned in the other answers. C) The agent of the vessel. D) The owner of the vessel. Show Answer Correct Answer: B) Any of the mentioned in the other answers. 24. With respect to the national saving and investment identity for any country, the quantity of ..... at any given time by savings must ..... for purposes of making investments. A) Foreign aid supplied; be lower than the quantity of domestic aid demanded. B) Foreign financial capital imports; equal to supply of domestic capital available. C) Foreign capital imports; less than the supply of domestic capital available. D) Financial capital supplied; equal the quantity of capital financial demanded. Show Answer Correct Answer: D) Financial capital supplied; equal the quantity of capital financial demanded. 25. A U.S. tariff on the import of sugar means that domestic producers of sugar A) Sell more and have a higher revenue. B) Sell more but have a lower revenue. C) Sell less but have a higher revenue. D) Sell less and have a lower revenue. Show Answer Correct Answer: A) Sell more and have a higher revenue. 26. A trade agreement between 27 countries, using the same currency and allows open trade between those nations. A) ABC. B) NAFTA. C) EU. D) WTO. Show Answer Correct Answer: C) EU. 27. What invention significantly reduced the time and cost of moving cargo, contributing to the acceleration of international trade? A) Containerization. B) Canals. C) Sailing ships. D) Steam engines. Show Answer Correct Answer: A) Containerization. 28. Combinations of output that the economy can possibly produce A) Total Output. B) Factor endowments. C) Production possibilities frontier. D) Finished Product. Show Answer Correct Answer: C) Production possibilities frontier. 29. When was liberalization started? A) 19th Century. B) 17th Century. C) 16th Century. D) 18th Century. Show Answer Correct Answer: A) 19th Century. 30. Cash grant is an example of a subsidy. A) FALSE. B) TRUE. Show Answer Correct Answer: B) 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