International Trade Quiz 20 (25 MCQs)

Correct Answer: B) Free trade.

Correct Answer: C) To protect the domestic furniture industry and its jobs.

Correct Answer: D) Specialisation is not possible unless trade takes place.

Correct Answer: B) They increase the price of imported goods.

Correct Answer: A) False.

Correct Answer: C) To facilitate international trade and resolve trade disputes.

Correct Answer: B) Japan.

Correct Answer: B) Coat.

Correct Answer: C) Balance of Trade.

Correct Answer: A) Economies of Scale.

Correct Answer: A) Productivity.

Correct Answer: B) DEFENSIVE MOTIVES.

Correct Answer: B) The literal translation of the word "riba" is "increase" or "excess" , which is forbidden under the Syariah law. Islamic banking is governed under the Syariah law. Hence any accrued interest for deposit and/or loan that is predetermined, which is considered as an "increase" or "excess" , is prohibited. Nevertheless, any profit from business activity that involves a certain risk where the profit cannot be determined is allowed since it depends on the relative success of the businesses or entrepreneurial activities. The element of sharing the undeterminable profit is allowed and does not contravene the Islamic principles and is acceptable in Islamic banking.

Correct Answer: C) Trade protection reduces government revenue.

Correct Answer: A) Because many goods have inputs from multiple factories in different countries.

Correct Answer: B) A scarce resource is depleted to extinction because it had zero cost to the users.

Correct Answer: E) All the above is correct.

Correct Answer: C) Cash in advance.

Correct Answer: C) CHOICE AND VARIETY.

Correct Answer: B) International trade takes place because countries are at different stages of production levels.

Correct Answer: D) Infant Industry.

Correct Answer: C) 40%.

Correct Answer: C) Coastal Lumber Company.

Correct Answer: D) Embargoes.

Correct Answer: A) Imports.