This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 18 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 18 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Import can be good if the government able to shift the market become more competitive by focusing on specific winning products. A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 2. This agent helps importers and exporters move their goods through customs, prepare documents, assist with communications, and arrange payment of duties. A) TAXES BROKER. B) FREIGHT BROKER. C) CUSTOMS BROKER. D) None of above. Show Answer Correct Answer: C) CUSTOMS BROKER. 3. Read the following claim.Tariffs can weaken the relationships between countries.Which selection from the article BEST supports the claim above? A) The impact of a tariff depends on the size of the country that imposes it. B) Therefore, both countries' trade policies can have a significant impact on the price of cocoa on global markets. C) Finally, the amount of trade in the product between the countries would decrease. D) For a "large" country, the benefits of a tariff are mixed. Buyers within the country face higher prices. Show Answer Correct Answer: C) Finally, the amount of trade in the product between the countries would decrease. 4. Import is buying from abroad. A) False. B) True. Show Answer Correct Answer: B) True. 5. Which of the following is not a negative of international trade? A) External debt. B) Workers being exploited for their work. C) Investment being quickly taken away from LEDCS after a project is completed. D) An abundance of jobs in transport and trade. Show Answer Correct Answer: D) An abundance of jobs in transport and trade. 6. Pepsi is an example of ..... A) Import. B) Export. C) Franchising. D) Licensing. Show Answer Correct Answer: D) Licensing. 7. If the U.S. government disagrees with a foreign country's policies and wants to prevent trading with that country, the MOST effective action the U.S. government can take is to A) Place high tariffs on all goods from that country. B) Place an embargo on all goods from that country. C) Enforce safety standards on all goods from that country. D) Encourage a quota on all goods shipped from that country. Show Answer Correct Answer: B) Place an embargo on all goods from that country. 8. A non-tariff (or non monetary) barrier can include such things as ..... A) All are true. B) Requiring extensive documentation for imported goods, restricting the location available to receive the imported goods, or having unreasonable standards for imported goods. C) A voluntary export restriction (VER) is when foreign firms "voluntarily" agree to limit the amount of their exports to a particular country. The catch is that even though it was voluntary, it was done under the threat of mandatory barriers so it really was not done through free will. D) Export subsidies consist of government payments to a domestic producer of export goods and are designed to help that producer by reducing its production costs. This should enable the producer to compete more effectively against the imported goods . E) NTB. Show Answer Correct Answer: A) All are true. 9. List of contents A) List of contents. B) Packing list. C) Packing list. D) Item list. Show Answer Correct Answer: B) Packing list. 10. The current price of one currency in relation to another A) Exchange Rate. B) Currency. C) International Finance. D) Trade Failure. Show Answer Correct Answer: A) Exchange Rate. 11. Goods produced in one country, then shipped out to another region or country A) Imports. B) Domestic Trade. C) World Trade. D) Export. Show Answer Correct Answer: D) Export. 12. In our contemporary time, what type of goods make up the majority of share in world trade?. A) Primary Goods. B) Commercial Services. C) Agricultural Goods. D) Manufactured Goods. Show Answer Correct Answer: D) Manufactured Goods. 13. Contractual agreements between and among countries concerning their relationship A) Protectionism. B) Fixed Exchange Rate. C) International Trade Agreements. D) Flexible Exchange Rate. Show Answer Correct Answer: C) International Trade Agreements. 14. Which group is this?-Promote free trade through gradual reduction of tariffs.-Provide legal framework for negotiation of trade disputes.-fair competition will lead to a higher standard of living-committed to economic development. A) B. WTO. B) D. OIL. C) A. IMF. D) SKY. Show Answer Correct Answer: A) B. WTO. 15. "Nothing is agreed until everything is agreed" is a term used to emphasize..... A) Single Abovetaking. B) Single Undertaking. C) Single Overtaking. D) Single Match-making. Show Answer Correct Answer: B) Single Undertaking. 16. According to the method of payment, all are the role of banks, except A) Money transfer. B) Document handling. C) Payment guarantee. D) Setting seller's and buyer's obligations. Show Answer Correct Answer: D) Setting seller's and buyer's obligations. 17. Tax set on imported goods A) Tariff. B) Trade Dependency. C) Free Trade. D) Trade Failure. Show Answer Correct Answer: A) Tariff. 18. In 2020, the Trump government increased the tax rate for Chinese cotton products. What type of trade barrier is it? A) Tariff. B) Standard. C) Quota. D) Embargo. Show Answer Correct Answer: A) Tariff. 19. With an exchange rate of 0.73 euros for 1 dollar, a US company is able to purchase 100 trucks from Germany. If the exchange rate shifted to 1 euro for 1 dollar, what would happen to the price the US company would pay for trucks? A) The price would go up, because the US dollar has appreciated. B) The price would go down, because the US dollar has depreciated. C) The price would go down, because the US dollar has appreciated. D) The price would go up, because the US dollar has depreciated. Show Answer Correct Answer: C) The price would go down, because the US dollar has appreciated. 20. What is an example of imports? A) Cars produced in the UK and sold abroad. B) Sugar purchased from Brazil. C) Cocoa needed for chocolate production. D) Goods and services made in one country and sold to another country. Show Answer Correct Answer: B) Sugar purchased from Brazil. 21. GATT was transformed into WTO (World Trade Organisation) on 1st January ..... A) 1985. B) 2005. C) 1995. D) 2015. Show Answer Correct Answer: C) 1995. 22. A decrease in the value of a currency; it takes more of your currency to buy another A) NAFTA. B) Currency Depreciation. C) Trade Surplus. D) Currency Appreciation. Show Answer Correct Answer: B) Currency Depreciation. 23. Provides financial support for global public goods that support the well being of poor people A) World Bank. B) World Trade Organization. C) International Monetary Fund. D) None of above. Show Answer Correct Answer: A) World Bank. 24. A quota can BEST be described as A) A ban on the sale of goods. B) A restricted on the quantity imported. C) A external tariff amoung countries. D) A license given to import goods. Show Answer Correct Answer: B) A restricted on the quantity imported. 25. The following are reasons for engaging in international trade EXCEPT A) Make the market more competitive. B) Encourage opportunity in local direct investment. C) Increased efficiency. D) Increase productivity. Show Answer Correct Answer: B) Encourage opportunity in local direct investment. 26. Which is NOT an advantage of international trade A) Availability of cheap raw materials. B) Import of defence material. C) Dependence on foreign countries. D) Export of surplus production. Show Answer Correct Answer: C) Dependence on foreign countries. 27. Which of the following are part of international trade? A) Politics. B) Economicsfactors. C) Social factors. D) All of these. Show Answer Correct Answer: D) All of these. 28. Assume that the government wants to borrow more money than before. How would this affect the loanable funds market? A) Increase interest rates. B) Decrease interest rates. C) The change to interest rates cannot be determined. D) None of above. Show Answer Correct Answer: A) Increase interest rates. 29. The food aid was distributed ..... per family, with larger families receiving more A) Shuttle. B) Reward. C) Intrepid. D) Proportionately. Show Answer Correct Answer: D) Proportionately. 30. If the equilibrium exchange rate changes so that it takes more dollars to buy a British pound, then- A) The dollar has appreciated in value. B) The dollar has depreciated in value. C) The British will buy fewer U.S. goods. D) Americans will import more British goods. Show Answer Correct Answer: B) The dollar has depreciated in value. ← 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