This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 21 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 21 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... intelligence is becoming bigger in our world. A) Artificial. B) Cargo. C) Offshore. D) Flagship. Show Answer Correct Answer: A) Artificial. 2. Which country is making a successful transition to market economics and is emerging as the world's second-largest economy? A) China. B) Germany. C) United States. D) Russia. Show Answer Correct Answer: A) China. 3. To promote, assist and develop Malaysias external trade with particular emphasis on the export of manufactured and semi manufactured products and on selective basisi, imports. A) MATRADE. B) MAY. C) HDC. D) MIDF. Show Answer Correct Answer: A) MATRADE. 4. Which of the following is a form of trade barrier? A) Quota. B) Praise. C) Embargo. D) All of the above. Show Answer Correct Answer: D) All of the above. 5. What is the term for a country's total value of exports minus its total value of imports? A) Trade surplus. B) Balance of payments. C) Trade fails. D) Exchange rate. Show Answer Correct Answer: B) Balance of payments. 6. Mexico, USA, and Canada are part of A) NAFTA. B) ASEAN. C) EU. D) None of above. Show Answer Correct Answer: A) NAFTA. 7. The seller sends the goods to the buyer's warehouse and all costs for shipping the goods are the responsibility of the seller, called delivery..... A) Local trade. B) Loco. C) Franco. D) Intertown trade. Show Answer Correct Answer: C) Franco. 8. According to the 1986 Uruguay Round, the ..... implement the GATT agreement. A) International Monetary Fund. B) World Bank. C) United Nations. D) World Trade Organization. Show Answer Correct Answer: D) World Trade Organization. 9. Setting export goods (prices of goods abroad) cheaper than domestic prices A) Premium policy. B) Dumping policy. C) Export ban policy. D) Price discrimination policy. Show Answer Correct Answer: B) Dumping policy. 10. ..... are government-imposed restraint on the flow of international goods or services. A) Tariff. B) Free trade. C) Import quotas. D) Trade barriers. Show Answer Correct Answer: D) Trade barriers. 11. When determining comparative advantage, one must determine ..... by looking at what I can produce after specialization. A) Opportunity cost. B) Embargoes. C) Specialization. D) Absolute Advantage. Show Answer Correct Answer: A) Opportunity cost. 12. Identify the formula of intra-industry trade index A) $T=1-\frac{\left|X-M\right|}{\text{X+M}}$. B) $T=1-\frac{\left|X+M\right|}{\text{X-M}}$. C) $T=\frac{\left|X-M\right|}{\text{X+M}}$. D) $T=1-\frac{X+M}{\left|X-M\right|}$. Show Answer Correct Answer: A) $T=1-\frac{\left|X-M\right|}{\text{X+M}}$. 13. ..... is this is associated with persons who only work to achieve a particular goal; and then leave the work scene. A) Seasonal unemployment. B) Structured unemployment. C) Residual unemployment. D) Frictional unemployment. Show Answer Correct Answer: C) Residual unemployment. 14. A tariff is an ..... on the dollar value, or quantity of an imported good. A) Excise tax. B) Income tax. Show Answer Correct Answer: A) Excise tax. 15. Industrialised countries X and Y trade with each other. Country X imposes a general tariff of 20% on imports from country Y. In which circumstances would the imposition of the tariff be unfavourable to country X? A if country X is seeking to protect its infant industries B if country X lacks the capacity to produce import substitutes C if imports from country Y have been dumped in country X D if imports of manufactured goods from country Y are price elastic A) C. B) D. C) B. D) A. Show Answer Correct Answer: C) B. 16. If a major economy with a trade deficit were to take action to increase exports, this could mean A) Destabilisation of its currency as it depreciates rapidly. B) Increased protectionism from its trade partners. C) Corresponding harmful trade surpluses for its trade partners. D) Corresponding harmful inflationary increases in aggregate demand for its trade partners. Show Answer Correct Answer: B) Increased protectionism from its trade partners. 17. A legal document between the shipper and carrier detailing the type, quantity and destination of the goods being carried. A) Airway Bill. B) Bill of Lading. C) Documentary Bill. D) Bill of Exchange. Show Answer Correct Answer: B) Bill of Lading. 18. Top management should also be viewed as part of the firm's infrastructure. A) True. B) False. Show Answer Correct Answer: A) True. 19. Who formulated Conventional International Trade Theory that is used to recognized countries as trading partners? A) Amado Smith. B) Eli Heckscher. C) Adam Smith. D) Bertil Ohlin. Show Answer Correct Answer: C) Adam Smith. 20. 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) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 21. Lampung can produce coffee efficiently and cheaply and West Java can produce rice efficiently. Then the two regions trade between regions. The factors driving trade between regions in the description above are ..... A) Economic advantage. B) Comparative advantage. C) Agricultural excellence. D) Absolute advantage. Show Answer Correct Answer: B) Comparative advantage. 22. What is the specialization of Japan? A) STEEL. B) OIL. C) ELECTRONICS. D) FLAT DISPLAY. Show Answer Correct Answer: C) ELECTRONICS. 23. To generate internal funds, an economy must A) Produce more than it consumes. B) Print more money. C) Spend more than it makes. D) Generate more than it produces. Show Answer Correct Answer: A) Produce more than it consumes. 24. A market economy: A) Answers the What, How and For Whom questions the way they have always been answered. B) Answers the What, How and For Whom questions by central authority. C) Answers the What, How and For Whom questions using prices determined by the interaction of supply and demand. D) None of above. Show Answer Correct Answer: C) Answers the What, How and For Whom questions using prices determined by the interaction of supply and demand. 25. A situation where a company may be involved in a business transaction, other countries, in general, attempts to market the production to another country. A) International Business Growth. B) International Marketing. C) International Trade. D) Free Trade. Show Answer Correct Answer: B) International Marketing. 26. When exports exceed imports, there is a trade ..... in the economy. A) Surplus. B) Deficit. C) Discrepancy. D) None of above. Show Answer Correct Answer: A) Surplus. 27. One of the following is NOT a protectionist measure: A) Dumping. B) Tariffs and quotas. C) Anti-dumping duties. D) Subsidies for domestic economies. Show Answer Correct Answer: A) Dumping. 28. If a country is an importer, quantity demanded can be found where the A) Supply curve is tangent to the production possibility frontier. B) Demand curve crosses the x-axis. C) Demand curve intersects the world price. D) Demand curve intersects the supply curve. E) Supply curve intersects the world price. Show Answer Correct Answer: C) Demand curve intersects the world price. 29. The United States currently has this type of trading agreement with North Korea.What is this an example of? A) Tariff. B) Quota. C) Embargo. D) None of above. Show Answer Correct Answer: C) Embargo. 30. Who has the comparative advantage in Food? A) Gamma. B) Neither. C) Omega. D) Both. Show Answer Correct Answer: C) Omega. ← 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