This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 134 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 134 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Company which carries goods by road A) Freight fowarder. B) Haulier. C) Supplier. D) None of above. Show Answer Correct Answer: A) Freight fowarder. 2. Outflow of Goods and Service is called as A) Import. B) Export. Show Answer Correct Answer: B) Export. 3. What is the national security argument for government intervention in international trade? A) To protect domestic industries. B) To maintain essential industries. C) To preserve national identity. D) To prevent unemployment. Show Answer Correct Answer: B) To maintain essential industries. 4. Which of the statements below does not accurately describe the theory of comparative advantage? A) It rests on some unrealistic assumptions. B) It allows an economy to diversify its economic activities. C) It may lead to too much specialisation. D) It ignores transportation costs. Show Answer Correct Answer: B) It allows an economy to diversify its economic activities. 5. What are export subsidies? A) Financial assistance provided to domestic producers for exporting goods. B) Agreements between countries to eliminate import tariffs. C) Trade restrictions on the quantity of goods that can be exported. D) Taxes imposed on exported goods. Show Answer Correct Answer: A) Financial assistance provided to domestic producers for exporting goods. 6. Market introduction, market growth, market maturity, and sales decline are the four stages of the product life cycle. A) FALSE. B) TRUE. Show Answer Correct Answer: A) FALSE. 7. The World Trade Organization (WTO) is a global organization, headquartered in ....., for dealing with trade between nations. A) Japan. B) Korea. C) Paris. D) Geneva. Show Answer Correct Answer: D) Geneva. 8. What is the purpose of the Sale of Goods Act in Canada? A) To regulate the sale of goods and provide general rules to govern transactions. B) To protect consumers during commercial transactions. C) To maintain and encourage competition in Canada. D) To combat spam and other electronic threats. Show Answer Correct Answer: A) To regulate the sale of goods and provide general rules to govern transactions. 9. What is the currency of the European Union? A) Dollar. B) Pound. C) Euro. D) Yen. Show Answer Correct Answer: C) Euro. 10. What is the purpose of the United States-Mexico-Canada Agreement (USMCA)? A) To establish high common standards in workplace safety and labor rights. B) To promote isolationism and reduce international trade. C) To create a more balanced environment for trade and support high-paying jobs. D) To restrict trade between the United States, Mexico, and Canada. Show Answer Correct Answer: C) To create a more balanced environment for trade and support high-paying jobs. 11. When U.S. goods cost less for foreign buyers, that means the dollar is ..... A) Appreciating. B) Depreciating. C) Neither. D) None of above. Show Answer Correct Answer: B) Depreciating. 12. Measures to limit the increased import of goods, applied in the form of restrictions on the import of goods in relation to their quantity and (or) value (import quota), special duties levied in excess of import customs duty, or other measures aimed at limiting the increased import of goods. A) Duming and safeguards measures. B) Trade measures. C) Non tariff barriers. D) Unfair practices to foreign trade. Show Answer Correct Answer: B) Trade measures. 13. How are imports decreased by the government? A) Through agreements with the companies individually. B) By establishing trade barriers to decrease imports. C) By limiting money given to a country. D) All of these. Show Answer Correct Answer: B) By establishing trade barriers to decrease imports. 14. Barriers regarding the number of units imported are called..... A) Tariff. B) Quota. C) Dumping. D) Subsidy. Show Answer Correct Answer: A) Tariff. 15. U.S. exports decline. A) Depreciation. B) Appreciation. Show Answer Correct Answer: B) Appreciation. 16. Determine which country has the comparative advantage:Japan can produce 4 laptops or 12 phones Brazil can produce 1 laptop or 5 phones A) Japan. B) Brazil. C) Both options are correct. D) None of above. Show Answer Correct Answer: A) Japan. 17. Transit Tariff is a tax levied on goods passing through the country. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 18. Mercantilism achieved prominence in A) The 18th century. B) The 19th century. C) Europe. D) None of above. Show Answer Correct Answer: A) The 18th century. 19. The World Trade Organization was created as part of the UruguayRound. A) True. B) False. Show Answer Correct Answer: A) True. 20. To promote and develop the competitiveness, presence and sustainability of the Malaysian Iron and steel industry A) MSI. B) UNCTAD. C) WTO. D) MAY. Show Answer Correct Answer: A) MSI. 21. When must an AWB be used? A) When shipping by truck. B) When shipping by boat. C) When shipping by plane. D) When shipping by email. Show Answer Correct Answer: C) When shipping by plane. 22. Country Z is both a producer and an importer of cloth. Which of the following will happen if the government of Country Z imposes a tariff on cloth and the country continues to import some cloth from abroad? A) There will be a decrease in domestic producer surplus. B) There will be an increase in the quantity demanded for cloth. C) As the country produces more cloth, there will be an efficiency gain for the economy. D) There will be a decrease in consumer surplus for domestic consumers. E) The domestic consumption of cloth will increase. . Show Answer Correct Answer: D) There will be a decrease in consumer surplus for domestic consumers. 23. Which of the following is NOT a possible reason why trade is particularly important to SIngapore? A) Singapore has a small population. B) Singapore lacks natural resources. C) Singapore has a skiiled and educated workforce. D) Singapore needs to develop its economy to feed its population. Show Answer Correct Answer: C) Singapore has a skiiled and educated workforce. 24. In the Ricardian model, ..... is the only factor of production. A) Labor. B) Technology. C) Cash. D) Natural resource. Show Answer Correct Answer: A) Labor. 25. What is the FDI? A) Plays development investment. B) Franchising direct investment. C) Federal direct investment. D) Foreign direct investment. Show Answer Correct Answer: B) Franchising direct investment. 26. What is the main difference between domestic trade and international trade? A) Use of local currencies to pay for goods and services. B) Use of foreign currencies to pay for goods and services. C) Use of barter system for trade. D) Use of cryptocurrencies for trade. Show Answer Correct Answer: B) Use of foreign currencies to pay for goods and services. 27. Why do countries specialize in certain products when they trade A) Unequal distribution of resources and specialization. B) The ability to produce more of a given product than someone else. C) The ability of a country to produce a good at a lower opportunity cost than another country can. D) To concentrate their efforts on producing a few goods and services instead of everything they need. Show Answer Correct Answer: D) To concentrate their efforts on producing a few goods and services instead of everything they need. 28. Which of the following is the best example of a bilateral trade agreement? A) Canada-Israel Free Trade Agreement. B) USMCA. C) World Bank. D) MERCOSUR. Show Answer Correct Answer: A) Canada-Israel Free Trade Agreement. 29. True or False:The Heckscher-Ohlin theory predicts that countries will export those goods that make intensive use of locally abundant factors while importing goods that make intensive use of locally scarce factors. A) False. B) True. Show Answer Correct Answer: B) True. 30. Which of the following describes the modern trade theories? A) The major theories of international trade advanced before the mid-20th century:mercantilism, absolute advantage, comparative advantage, and factor endowments. B) The major theories of international trade advanced in the second half of the 20th century:product life cycle, strategic trade, and national competitive advantage. C) The aggregation of importing and exporting leads to the country-level trade surplus or deficit. D) A theory that holds that the wealth of the world (measured in gold and silver) is fixed and that a nation that exports more and imports less would enjoy the net inflows of gold and silver and thus become richer. Show Answer Correct Answer: B) The major theories of international trade advanced in the second half of the 20th century:product life cycle, strategic trade, and national competitive advantage. ← 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