This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 16 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 16 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Who was know as the father of modern economics and believed in capitalism? A) Jeffrey Sachs. B) Karl Marx. C) Adam Smith. D) Robert Smith. Show Answer Correct Answer: C) Adam Smith. 2. A statement that is NOT a scope of international trade activities is ..... A) Indonesia regularly sends workers to several ASEAN countries. B) Mr. Rudi, an Indonesian citizen, sells goods to an Australian colleague who lives in Semarang. C) During the fasting month, imports of dates from Saudi Arabia increase to meet domestic needs. D) Taiwan sells agricultural feed products to Thailand. Show Answer Correct Answer: B) Mr. Rudi, an Indonesian citizen, sells goods to an Australian colleague who lives in Semarang. 3. What are the key concepts of international trade? A) The key concepts of international trade include comparative advantage, tariffs, quotas, trade agreements, exchange rates, and balance of payments. B) The key concepts of international trade include computer programming languages, smartphone features, and social media platforms. C) The key concepts of international trade include gardening tips, movie reviews, and music genres. D) The key concepts of international trade include cooking techniques, fashion trends, and sports events. Show Answer Correct Answer: A) The key concepts of international trade include comparative advantage, tariffs, quotas, trade agreements, exchange rates, and balance of payments. 4. It can hurt developing countries as it can be difficult to complete with the world powers A) Pro. B) Con. Show Answer Correct Answer: B) Con. 5. Which of the following is FALSE about the internal economies of scale? A) Occur when the cost per unit of output depends on the size of a firm, not necessarily on the size of industry. B) Imperfectly competitive market structure. C) Perfectly competitive market structure. D) Give large firms a cost advantage over small firms. Show Answer Correct Answer: C) Perfectly competitive market structure. 6. This term means thtat the seller must pay all costs related to getting the goods to port and onto the ship. A) FOB. B) CFR. Show Answer Correct Answer: A) FOB. 7. What are some barriers of international trade? A) Subsidies. B) Tariffs. C) Standardization. D) All of the above. Show Answer Correct Answer: D) All of the above. 8. An import tariff of $ 10 per unit of imported good imposed by a large country A) Increases the price of this good in the importing country by less than $ 10 and lowers export prices. B) Increases the price of this good in the importing country by more than $ 10 and raises export prices. C) Increases the price of this good in the importing country by $ 10 and leaves export prices unaffected. D) Increases the volume of exports of that good by foreigners. Show Answer Correct Answer: A) Increases the price of this good in the importing country by less than $ 10 and lowers export prices. 9. ..... defines the detailed obligations of both commercial parties in relation to the payment, not only the form of payment and when and where this payment shall be made by the buyer, but also the obligations of the seller to deliver according to the contract. A) Methods of payment. B) Competitive situation. C) Time value of money. D) Terms of payment. Show Answer Correct Answer: D) Terms of payment. 10. Which of the following can be considered a negative consequence (or cost) of implementing protectionism in the short run? A) Higher unemployment. B) Higher inflation. C) Worsening balance of payments. D) Slower economic growth. Show Answer Correct Answer: B) Higher inflation. 11. Goods and services sold to other countries. A) Corporate. B) Imports. C) Embargo. D) Exports. Show Answer Correct Answer: D) Exports. 12. The policy of imposing duties or quotas on imports in order to protect home industries from overseas competition A) Free trade. B) Balance of trade. C) Internationalism. D) Protectionism. Show Answer Correct Answer: D) Protectionism. 13. In most cases, what determines the goods and services a country decides to export? A) The World Trade Organization. B) When a country has comparative advantage or an absolute advantage. C) Globalization. D) All of the above. Show Answer Correct Answer: B) When a country has comparative advantage or an absolute advantage. 14. The ability of a country to produce goods at a lower opportunity cost than another country is called A) Comparative advantage. B) Absolute advantage. Show Answer Correct Answer: A) Comparative advantage. 15. When one producer can create a given amount of output with fewer inputs, what exists? A) Absolute disadvantage. B) Absolute advantage. C) Comparative disadvantage. D) Comparative advantage. Show Answer Correct Answer: B) Absolute advantage. 16. What is a benefit of a tariff? A) Government revenue. B) Decreased prices for consumers. C) Dead-Weight Loss. D) Increase in competition for producers. Show Answer Correct Answer: A) Government revenue. 17. Today, countries seen by others as trying to maintain a trade surplus and expand their national treasures at the expense of other nations are accused of practicing ..... A) Social stratification. B) Economic nationalism. C) Anti-mercantilism. D) Totalitarianism. Show Answer Correct Answer: B) Economic nationalism. 18. ..... strategy enacted by governments and central banks to keep economic growth stable, along with price levels and unemployment. A) Industrialization. B) Exchange rate. C) Stabilization. D) Protectionist policy. Show Answer Correct Answer: C) Stabilization. 19. Comparative advantage:Because each nation has limited natural resources, a country must weigh its best options or ..... when using natural resources to produce a particular good or service for export A) Opportunity costs. B) Government structure. C) Military strength. D) All of the above. Show Answer Correct Answer: A) Opportunity costs. 20. The British pound, the yen, and the euro are examples of ..... A) Quotas. B) Tariffs. C) Exchange rates. D) Currencies. Show Answer Correct Answer: D) Currencies. 21. If you travel to a foreign country, buy an ice cream cone at a street stall, and pay with a credit card (which has a foreign currency settlement function), is this behavior considered international trade? A) Doesn't count. B) Calculate. Show Answer Correct Answer: B) Calculate. 22. What is the purpose of a voluntary export restraint (VER)? A) To limit the use of antidumping laws. B) To protect domestic producers from unfair foreign competition. C) To restrict the quantity of a good that may be imported. D) To encourage exports by imposing a lower tariff. Show Answer Correct Answer: B) To protect domestic producers from unfair foreign competition. 23. A policy where the government removes barriers to export and import activities is called..... A) General trading. B) Interregional trade. C) Free trade. D) International trade. Show Answer Correct Answer: C) Free trade. 24. What is one reason the United States might impose a high tariff on furniture manufactured in China? A) To pay for domestic reforestation programs. B) To raise revenue for the government. C) To protect the domestic furniture industry and its jobs. D) To sell more furniture to China. Show Answer Correct Answer: C) To protect the domestic furniture industry and its jobs. 25. Why is the exchange of goods and services a necessary characteristic of a specialised economy? A) Specialisation is only possible through self-sufficiency. B) Specialisation is not affected by trade. C) Specialisation is only possible through government intervention. D) Specialisation is not possible unless trade takes place. Show Answer Correct Answer: D) Specialisation is not possible unless trade takes place. 26. How do trade barriers impact consumers? A) They increase the price of imported goods. B) They decrease the price of imported goods. Show Answer Correct Answer: A) They increase the price of imported goods. 27. Strategic alliances does not allow firms to share the fixed costs (and associated risks) of developing new products or processes. A) True. B) False. Show Answer Correct Answer: B) False. 28. What is the primary goal of the World Trade Organization (WTO)? A) To promote environmental conservation. B) To regulate international currency exchange rates. C) To facilitate international trade and resolve trade disputes. D) To provide humanitarian aid to developing countries. Show Answer Correct Answer: C) To facilitate international trade and resolve trade disputes. 29. Which country in CPTPP is Vietnam's largest textile and garment export market (2019)? A) Malaysia. B) Canada. C) Australia. D) Japan. Show Answer Correct Answer: D) Japan. 30. Which is not an item in the "cut and sew" rule? A) Women's bra. B) Coat. C) Children's clothing made of synthetic fibers. D) Suitcases and bags. Show Answer Correct Answer: B) Coat. ← 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