This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 132 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 132 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Since NAFTA was established, unions have primarily focused on which concern? A) Environment. B) Wages. C) Working conditions. D) Jobs. Show Answer Correct Answer: D) Jobs. 2. Multinational companies are typically large companies. What problems can occur? A) Easy to communicate. B) Communication becomes more difficult. C) The communication costs decrease and profits increase. D) The business can become successful. Show Answer Correct Answer: B) Communication becomes more difficult. 3. American and Japanese workers can each produce 4 cars a year. An American worker can produce 10 tons of grain a year, whereas a Japanese worker can produce 5 tons of grain a year. To keep things simple, assume that each country has 100 million workers. Which country has a comparative advantage in producing cars? A) America. B) Japan. C) None. D) None of above. Show Answer Correct Answer: B) Japan. 4. The theory of specializing in what we can do fastest and cheapest is called A) Specialization. B) Absolute advantage. C) Comparative advantage. D) Competition. Show Answer Correct Answer: B) Absolute advantage. 5. Everybody was confused by the end of the presentation so the professor ..... that the programme would start in December. A) Mentioned. B) Pointed out. Show Answer Correct Answer: B) Pointed out. 6. New Zealand goods are very expensive. Norway's goods are cheaper. What would happen the level of GDP of each country if they entered into a trade agreement? A) New Zealands increase, Norway decrease. B) New Zealands decrease, Norway decrease. C) New Zealands increase, Norway increase. D) New Zealands decrease, Norway increase. Show Answer Correct Answer: D) New Zealands decrease, Norway increase. 7. Who has the Comparative advantage in Coffee? A) Peru. B) Unknown. C) Colombia. D) Neither. Show Answer Correct Answer: A) Peru. 8. Rich countries have deficit in their balance of payments A) Never. B) Always. C) Alternate years. D) Sometimes. Show Answer Correct Answer: D) Sometimes. 9. What are the seven main instruments of trade policy? A) Tariffs, subsidies, export quotas, voluntary import restraints, local content requirements, administrative policies, antidumping duties. B) Tariffs, subsidies, import quotas, voluntary export restraints, local content requirements, administrative policies, export bans. C) Tariffs, subsidies, import quotas, voluntary export restraints, local content requirements, administrative policies, antidumping duties. D) Tariffs, subsidies, import quotas, voluntary export restraints, local content requirements, administrative policies, export tariffs. Show Answer Correct Answer: C) Tariffs, subsidies, import quotas, voluntary export restraints, local content requirements, administrative policies, antidumping duties. 10. The ..... is a trade agreement between Canada, Mexico, and the U.S. A) EU. B) USMCA. C) WTO. D) TPP. Show Answer Correct Answer: B) USMCA. 11. Country will produce only ONE product that it has absolute advantage. This refers to: A) Efficiency. B) Comparative advantage. C) Absolute advantage. D) Specialization. Show Answer Correct Answer: D) Specialization. 12. 9/ In the context of international trade with external economies, what is the primary driver of specialization and trade patterns among countries? A) Comparative advantage. B) Currency exchange rates. C) Government subsidies. D) Consumer preferences. Show Answer Correct Answer: A) Comparative advantage. 13. Wha does Literacy rate refer to? A) It refers to the number of people who can read and write in a country. B) It refers to the number of books students read in a year. C) It refers to the number of schools in a country. D) None of above. Show Answer Correct Answer: A) It refers to the number of people who can read and write in a country. 14. Which on of the following is a main characteristic of a less-developed economy A) High levels of productivity. B) Population decline. C) Relatively low per capita income. D) Low dependency ratio. Show Answer Correct Answer: C) Relatively low per capita income. 15. Which will increase exports in a country? A) An increase in Aggregate Demand. B) A decrease in income taxes. C) Depreciation of the nation's currency. D) Appreciation the nation's currency. E) An increase in the nation's budget deficit. Show Answer Correct Answer: C) Depreciation of the nation's currency. 16. It is a characteristic of a society with a high degree of division of labor, where people depend on each other for goods and services required to sustain life and living ..... ? A) CONNECTIVITY. B) ECONOMIC INTERDEPENDENCE. C) DIVISION IN ECONOMICS. D) ECONOMIC REASONS. Show Answer Correct Answer: B) ECONOMIC INTERDEPENDENCE. 17. Which one is not the activity of Trade in goods? A) Switch trade. B) International processing. C) Exports and imports. D) Consumption abroad. Show Answer Correct Answer: D) Consumption abroad. 18. The North Pole's currency can buy more stuff than Jupiter's currency. The North Pole's currency is A) Strong. B) Weak. C) Going to inflate. D) None of above. Show Answer Correct Answer: A) Strong. 19. What is the impact of international trade on employment? A) Increased job opportunities due to export expansion. B) Decreased job opportunities in domestic markets. C) Increased unemployment due to import competition. D) Limited impact on employment levels. Show Answer Correct Answer: A) Increased job opportunities due to export expansion. 20. Arab league is an example of a A) State. B) International Organization. Show Answer Correct Answer: B) International Organization. 21. If a production possibility frontier intersects the x-axis at 5 units then the A) Producer has an absolute advantage. B) Producer prefers to producer the x axis good. C) Producer is more efficient at producing the x-axis good. D) Slope of the ppf is-2. E) Producer should only consume the x-axis good. Show Answer Correct Answer: C) Producer is more efficient at producing the x-axis good. 22. It's a contract or agreement between an exporter and a transportation company. It contains a list of the goods being carried and it must remain with the merchandise at all times. A) BILL OF LADING (BL). B) LETTER OF CREDIT. C) CERTIFICATE OF QUALITY. D) None of above. Show Answer Correct Answer: A) BILL OF LADING (BL). 23. How many formats are there in INCOTERMS 2020? A) 11. B) 9. C) 7. D) 4. Show Answer Correct Answer: A) 11. 24. Which of the following was the most important in creating the global economy that exists today? A) The use of high taxes for imports and exports. B) Improvements in technology such as the Internet. C) The creation of one form of currency (money) used to trade. D) The success of the Communist governments in guiding trade. Show Answer Correct Answer: B) Improvements in technology such as the Internet. 25. Which of the following factors will bring rapid growth to international trade? I Lower corporate tax rateII Reduce non-tariff barriersIII Implement rules on foreign exchange controlIV Improve the efficiency of communication and transportation A) And I, II, III. B) B I, II, IV. C) C I, III, IV. D) D II, III, IV. Show Answer Correct Answer: B) B I, II, IV. 26. Explain the concept of import quotas. A) Import quotas increase the quantity of a specific good that can be imported into a country. B) Import quotas only apply to exports from a country, not imports. C) Import quotas have no impact on the quantity of goods that can be imported into a country. D) Import quotas restrict the quantity of a specific good that can be imported into a country. Show Answer Correct Answer: D) Import quotas restrict the quantity of a specific good that can be imported into a country. 27. Culture contains various understandings so it is called..... A) Multidimensional. B) Integrated. C) Contextual. D) Unidimensional. Show Answer Correct Answer: A) Multidimensional. 28. What are the major challenges faced by countries in international trade? A) Language barriers and communication issues. B) Lack of demand for products in foreign markets. C) High transportation costs and logistics challenges. D) The major challenges faced by countries in international trade include trade barriers, currency fluctuations, political instability, and regulatory differences. Show Answer Correct Answer: D) The major challenges faced by countries in international trade include trade barriers, currency fluctuations, political instability, and regulatory differences. 29. Which of the following is not a main argument in favor of protectionism? A) Infant industry argument. B) National Security Argument. C) National Stability Argument. D) Protecting domestic jobs argument. Show Answer Correct Answer: C) National Stability Argument. 30. A situation in which producers in one nation depend on others to provide goods and services they do not produce is called A) Trade interdependence. B) Economic interdependence. C) Corporate interdependence. D) International interdependence. Show Answer Correct Answer: B) Economic interdependence. ← 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