This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 15 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The role of the enterprise's service activity is to provide after-sale service and support. A) False. B) True. Show Answer Correct Answer: B) True. 2. What does WTO stand for? A) We Trade Oranges. B) World Trade Organisation. C) World Tarriff Office. D) World Telecoms Organisation. Show Answer Correct Answer: B) World Trade Organisation. 3. How does inflation rate affect currency value/exchange rate? A) Increasing inflation leads to more favourable exchange rates. B) Higher inflation leads to currency appreciation. C) Higher inflation leads to depreciating currency & vice versa. D) Lower inflation leads to more favourable exchange rate. Show Answer Correct Answer: C) Higher inflation leads to depreciating currency & vice versa. 4. To focus on producing one thing or specific product and to improve productivity is known as: A) Specialization. B) International trade. C) Absolute Advantage. D) Supply and Demand. Show Answer Correct Answer: A) Specialization. 5. What is exchange rates? A) Tax on imports to protect businesses in the country, make the import more expensive, cost is passed to consumers. B) The price of one nation's currency in terms of another nation's currency. C) Simply the difference between the value of exports and value of imports. D) None of above. Show Answer Correct Answer: B) The price of one nation's currency in terms of another nation's currency. 6. A trade agreement between approximately 28 countries. The participating countries agree to use the Euro as their currency, open their borders and have free trade. A) European Union. B) North American Trade Agreement. Show Answer Correct Answer: A) European Union. 7. Free trade refers to a situation where a government does not try to influence what its citizens can buy from global markets. A) False. B) True. Show Answer Correct Answer: B) True. 8. The government's policy of reducing the value of the domestic currency relative to foreign currency is called..... A) Appreciation. B) Devaluation. C) Inflation. D) Deflation. Show Answer Correct Answer: B) Devaluation. 9. International business involves the buying and selling of products or services between countries. A) False. B) True. Show Answer Correct Answer: B) True. 10. These are the agreements between two (2) or more partners designed to capture gain from trade beyond those agreements currently attainable under WTO treaties. A) General Agreement on Trade in Services. B) Multilateral and Bilateral Trade Agreements. C) World Trade Organization Agreements. D) General Agreement on Tariffs and Trade. Show Answer Correct Answer: B) Multilateral and Bilateral Trade Agreements. 11. Many businesses move their headquarters to try and avoid paying taxes in their home country. A) Con. B) Pro. Show Answer Correct Answer: A) Con. 12. Japan will trade electronic equipment for goods in other countries as long as A) Japans balance of payments is in positive territory. B) Other countries have absolute advantage in electronic equipment. C) Japan has comparative advantage in electronic equipment. D) Other countries have more desirable exchange rates. Show Answer Correct Answer: C) Japan has comparative advantage in electronic equipment. 13. Question 1:The bank that adds its confirmation to a credit upon the issuing bank's authorization or request is called ..... A) Issuing bank. B) Advising bank. C) Confirming bank. D) Nominated bank. Show Answer Correct Answer: C) Confirming bank. 14. Imports cause money to ..... A) Leave Ireland. B) Enter Ireland. Show Answer Correct Answer: A) Leave Ireland. 15. In what year did Starbucks experience a significant number of store closures in Australia? A) 2009. B) 2008. C) 2007. D) 2006. Show Answer Correct Answer: B) 2008. 16. Is there any disadvantage to a government subsidizing domestic firms to make them able to compete in price with cheaper imported goods? A) No, it helps domestic consumers, firms, and workers. B) No, the only ones who suffer are the foreign firms. C) Yes, consumers must pay higher prices. D) Yes, consumers must pay higher taxes. Show Answer Correct Answer: A) No, it helps domestic consumers, firms, and workers. 17. HO (factor-proportions) stated that countries traded completely specialize in the good in which they have a comparative advantage. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 18. The rate a lender charges to a borrower for a loan, presented as a fixedpercentage of the total amount borrowed A) Inflation Rate. B) GDP. C) Spot Rate. D) Interest Rate. Show Answer Correct Answer: D) Interest Rate. 19. A disadvantage of specialisation:Specialisation can lead to overreliance on one industry-if something happened to negatively affect that industry, it would have a severe impact on the whole economy. A) Yes, I understand this from the notes. B) No, I don't understand this from the notes. C) No, I don't understand this, as I have not read the notes. D) None of above. Show Answer Correct Answer: A) Yes, I understand this from the notes. 20. The ..... for computers is very competititve. A) Weather. B) Trade. C) Market. D) Goods. Show Answer Correct Answer: C) Market. 21. Who has the comparative advantage for brooms? A) Gryffindor. B) Ravenclaw. Show Answer Correct Answer: B) Ravenclaw. 22. What is Export Trade? A) The purchase or buying of goods or services from a foreign country for consumption in the importing country. B) The export of goods from one country to another. C) The sale of goods to a foreign country. D) The re-export of goods from a third country. Show Answer Correct Answer: C) The sale of goods to a foreign country. 23. Infant Industries Argument suggests: A) Protecting newly established industries. B) Limiting all international trade. C) Eliminating tariffs. D) Advocating for fixed exchange rates. Show Answer Correct Answer: A) Protecting newly established industries. 24. Dispute settlement competence at the WTO applies to the types of disputes as found in..... A) Appendix 1 & Appendix 2. B) Appendix 1, Appendix 2, Appendix 3. C) Appendix 1, Appendix 2, Appendix 3, Appendix 4. D) All wrong. Show Answer Correct Answer: A) Appendix 1 & Appendix 2. 25. Theory of comparative advantage was presented by A) Hicks. B) Guide. C) Adam Smith. D) Ricardo. Show Answer Correct Answer: D) Ricardo. 26. ..... is an investment that a company makes into another company by the way of acquiring shares or providing loans A) FPI. B) Export. C) FDI. D) JV. Show Answer Correct Answer: A) FPI. 27. A saving account in a bank represents the function of money: A) Store of value. B) A medium of exchange. C) A standard for deferred payments. D) A measure of value. Show Answer Correct Answer: A) Store of value. 28. The worth of the countries money in terms of another country A) Exchange rates. B) Appreciation. C) Depreciation. D) None of the above. Show Answer Correct Answer: A) Exchange rates. 29. When countries create tariffs, they ..... A) Remove restrictions on imports. B) Place limits on the amount of goods that can be imported. C) Create common currencies. D) Set taxes on imported goods. Show Answer Correct Answer: D) Set taxes on imported goods. 30. Before reading this chapter, to what extent did you prefer to buy products made in your own country? A) I always preferred products made in my own country. B) I preferred products made in other countries. C) I preferred products made in my own country to some extent. D) I didn't have a preference for products made in my own country. Show Answer Correct Answer: C) I preferred products made in my own country to some extent. ← 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