This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 2 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Tariffs (or taxes on imported goods) ..... A) All are true. B) The most commonly used trade barrier. C) Have an indirect effect beyond just basic supply and demand concepts. Since the foreign country supplying the import will sell less, their economy will decline. D) Creates a decline in domestic consumption as the desired goods are now at a higher price than consumers are willing to pay, an increase in domestic production as suppliers will be able to receive a higher price for the goods,. E) Create a decline in imports which was the whole point of the tariff, and tariff revenue accruing to the domestic government. Show Answer Correct Answer: A) All are true. 2. Due to increased cross border trade and investments, countries are no more ..... A) Trading. B) Helpful. C) Isolated. D) Related. Show Answer Correct Answer: C) Isolated. 3. If a good is imported into a (large) country H from country F, then the imposition of a tariff in country H A) Raises the price of the good in both countries. B) Raises the price in country H and cannot affect its price in country F. C) Lowers the price of the good in both countries. D) Raises the price of the good in H and lowers it in F. Show Answer Correct Answer: D) Raises the price of the good in H and lowers it in F. 4. When the dollar "falls" compared to other currencies, this means A) The value of a unit of foreign currency is harder to measure dollars. B) It takes more dollars to equal a unit of foreign currency. C) It takes fewer dollars to equal a unit of foreign currentcy. D) The value of a dollar is harder to measure, compared to foreign currencies. Show Answer Correct Answer: B) It takes more dollars to equal a unit of foreign currency. 5. Which of the following will be the lowest barrier on imports of $ 300 digital cameras? A) An ad-valorem 5% tariff. B) A specific $ 10 tariff. C) A quota that raises the internal price of the cameras by 5%. D) A compound duty of $ 5 and 1%. Show Answer Correct Answer: D) A compound duty of $ 5 and 1%. 6. A tax put on goods that are imported into a country. A) Quota. B) Embargo. C) Subsidy. D) Tariff. Show Answer Correct Answer: D) Tariff. 7. They are imposed after an investigation finds that a foreign country subsidizes its exports, injuring domestic producers in the importing country. A) Countervailing duties. B) Special duties and non tariff regulations. C) Mixed duties. D) Ad valorem duties. Show Answer Correct Answer: A) Countervailing duties. 8. An entity that mines resources in China, manufactures goods in Austria, and markets thesegoods in Japan is probably a A) Multinational custom union. B) Multinational corporation. C) Multinational monopoly. D) Multinational cartel. Show Answer Correct Answer: B) Multinational corporation. 9. Bribe and kickbacks discourage foreign firms to expand to new territories. A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 10. The World Trade Organization was established on January 1994 to in order to facilitate the implementation, administration and operation and further the objectives of this agreement and on the Multinational Trade Agreements. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 11. The United States places a tax on all goods imported from China. What type of trade barrier is this? A) Quota. B) Subsidy. C) Tariff. D) Embargo. Show Answer Correct Answer: C) Tariff. 12. When the value of the dollar falls against the pound, which US businesses benefit? A) Businesses that export goods to the UK to sell there. B) Businesses that import goods from the UK to sell in the USA. C) Businesses that import components from the UK to put into their manufactured goods. D) No US businesses benefit. Show Answer Correct Answer: A) Businesses that export goods to the UK to sell there. 13. Example of invisible trade A) Vegetables export. B) Textiles export. C) Foreign Tourist paid money. D) Oil import. Show Answer Correct Answer: C) Foreign Tourist paid money. 14. This department deals with bonuses, benefits and things related with the staff A) Resources Humans. B) Personnel. C) Accounting. D) None of above. Show Answer Correct Answer: B) Personnel. 15. Who are the main trading partners of the US? A) Germany, Great Britain, China, and France. B) The Central American countries. C) Canada, Mexico, and China. D) The Middle Eastern countries. Show Answer Correct Answer: C) Canada, Mexico, and China. 16. Four main stages in product life cycle theory: A) Introduction-Maturity-Growth-Decline. B) Introduction-Growth-Maturity-Decline. C) Introduction-Maturity-Decline-Growth. D) Introduction-Growth-Decline-Maturity. Show Answer Correct Answer: B) Introduction-Growth-Maturity-Decline. 17. As a result of the Stamp Act, colonists organized ..... in all the colonies. A) Elections. B) Boycotts. C) Petitions. D) Parties. Show Answer Correct Answer: B) Boycotts. 18. Suppose you own a cotton clothing brand in London? Which factors you will consider when you place the order for your brand. A) Price and quality. B) The dealer is a friend. C) You love to visit that country because you love the food. D) None of above. Show Answer Correct Answer: A) Price and quality. 19. Its approach to ethics hold that the moral worth of actions or practices is determined by their consequences. A) Utilitarian approaches. B) Rights theories. C) Justice theories. D) None of above. Show Answer Correct Answer: A) Utilitarian approaches. 20. Question 2:True or FalseExporters prefer open account to advance payment. A) True. B) False. Show Answer Correct Answer: B) False. 21. True or False:Having a trade surplus means the country exports more than it imports, while having a trade deficit means the country exports less than it imports. A) False. B) True. Show Answer Correct Answer: B) True. 22. Which of these is a disadvantage of trading internationally? A) Shipping costs could decrease. B) Shipping cost could increase. C) Expanding the business. D) Increasing market share. Show Answer Correct Answer: B) Shipping cost could increase. 23. What is the World Trade Organization (WTO)? A) An international organization that promotes global environmental conservation. B) A group of countries that aim to establish a global military alliance. C) An intergovernmental body that regulates and promotes international trade. D) A forum for cultural exchange and diplomatic negotiations among nations. Show Answer Correct Answer: C) An intergovernmental body that regulates and promotes international trade. 24. Open market operations take place when the A) Central bank increases or decreases reserve requirements for depository institutions. B) Central bank buys or sells government bonds. C) Central bank buys or sells stocks. D) Commercial banks borrow reserves from the central bank. E) Central bank increases or decreases the discount rate to monitor the money supply. Show Answer Correct Answer: B) Central bank buys or sells government bonds. 25. The Japanese government was pressurized place limits on the number of vehicles exported to the United States by Japanese automobile producers in 1981. This is an example of: A) Specific tariff. B) Tariff rate quota. C) Voluntary export restraint. D) To the tariff value. Show Answer Correct Answer: C) Voluntary export restraint. 26. What is the term for when an individual person or a company owns enough stock to choose the company's board, management, and policies? A) Parent company. B) Deregulation. C) Controlling interest. D) Physical investment. Show Answer Correct Answer: C) Controlling interest. 27. Which of these is an advantage for trading internationally A) Expanding the business. B) Increasing the target market. C) Reducing the business. D) Increase in costs. Show Answer Correct Answer: A) Expanding the business. 28. Which country first signed the Convention on International Trade in Endangered Species of Wild Fauna and Flora? A) Greece. B) Sudan. C) United States. D) Nigeria. Show Answer Correct Answer: C) United States. 29. (a) List FOUR (4) types of method of payment in Islamic international trade. A) Documentary Credit, Collection payment, open account, advanced payment. B) Documentary Credit, secret documents, method of payment, collection payment. C) Open Account, Advance Payment, Documentary Collection.Documentary Credit. D) Open Account, open table, advance payment, letter of credit, love letters. Show Answer Correct Answer: C) Open Account, Advance Payment, Documentary Collection.Documentary Credit. 30. Which of the following ideas is closely linked to the theory of absolute advantage? A) All international trade must be closely regulated by governments. B) Free market forces should determine how much to trade with minimal government intervention. C) Governments should actively protect domestic industries from imports and vigorously promote exports. D) Nations should specialize in economic activities in which they have comparative advantage. Show Answer Correct Answer: B) Free market forces should determine how much to trade with minimal government intervention. ← PreviousNext →Related QuizzesInternational Economics QuizzesEconomics QuizzesInternational Trade Quiz 1International Trade Quiz 3International Trade Quiz 4International Trade Quiz 5International Trade Quiz 6International Trade Quiz 7International Trade Quiz 8International Trade Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books