This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 22 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 22 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. One of the benefits of free trade is that it ..... A) Supports friendly governments. B) Raises standard of living. C) Ends homelessness. D) Reduces shipping. Show Answer Correct Answer: B) Raises standard of living. 2. The following is an activity that causes a country's foreign exchange to increase ..... A) Providing foreign loans. B) Exporting goods abroad. C) Finance the ambassadors abroad. D) Selling goods in the country (domestic). Show Answer Correct Answer: B) Exporting goods abroad. 3. How is a country most likely to reduce imports? A) Revenue tariff. B) Import quota. C) Export quota. D) None of above. Show Answer Correct Answer: B) Import quota. 4. To join the Eurozone, a country must ..... A) Meet the financial criteria. B) Accept all shipping requests. C) Build a border around your country. D) Move the county's capital. Show Answer Correct Answer: A) Meet the financial criteria. 5. It includes the investment of available funds in foreign companies to get returns. A) Foreign. B) Export. C) Import. D) Foreign Investment. Show Answer Correct Answer: D) Foreign Investment. 6. What is more likely to result from rather than cause economic development? A a depletion of non-renewable resources B a move towards free trade C a stable political and legal system D more private and less public sector activity A) A. B) B. C) D. D) C. Show Answer Correct Answer: A) A. 7. Why do businesses often opt to trade in developed countries? A) Lower labour costs. B) High Sales potential. C) Risk of political instability. D) Cultural differences. Show Answer Correct Answer: B) High Sales potential. 8. In 1987, the United Nations General Assembly passed a resolution that prohibited countries from buying oil from South America. This was done to persuade South Africa to end the racist policies of apartheid. What is this an example of? A) Embargo. B) Quota. C) Standard. D) Tariff. Show Answer Correct Answer: A) Embargo. 9. The difference in value between exports and imports of a nation. A) International trade. B) Infrastructure. C) Balance of trade. D) Joint venture. Show Answer Correct Answer: C) Balance of trade. 10. It introduces opportunity cost as a factor for analysis in choosing between different options for production. A) Leontief Paradox. B) Absolute Advantage. C) Comparative Advantage. D) Mercantilism. Show Answer Correct Answer: C) Comparative Advantage. 11. The following is an example of the creation of technology transfer due to international trade ..... A) Providing training for energy-efficient car technicians imported from Japan. B) The implementation of rice imports in order to meet domestic needs. C) Exports of agricultural products to countries experiencing shortages of agricultural products. D) Japanese-made automotive products are in great demand in Indonesia because Japan is able to produce good quality automotive products at relatively low costs. Show Answer Correct Answer: A) Providing training for energy-efficient car technicians imported from Japan. 12. Factors of production include labor, capital, and raw material for producing goods and services that are available at different rates in different countries. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 13. Exports exceed imports A) The trade fails. B) Trade surplus. C) Balance of trade. D) Surplus. Show Answer Correct Answer: B) Trade surplus. 14. What is the meaning of exchange rate? A) The cost of exchanging one currency for another. B) The value of one currency in terms of another currency. C) The interest rate at which banks lend money to each other in the foreign exchange market. D) The rate at which a country's currency can be exchanged for gold. Show Answer Correct Answer: B) The value of one currency in terms of another currency. 15. "advising bank" = banco notificador A) False. B) True. Show Answer Correct Answer: B) True. 16. Rate of increase of prices in a country each year A) Spot Rate. B) GDP. C) Interest Rate. D) Inflation Rate. Show Answer Correct Answer: D) Inflation Rate. 17. There is a strong empirical relationship between the size of a country's economy and what? A) Volume of Both Imports and Exports. B) Volume of Primary and Manufactured Goods. C) Volume of GDP and GNP. D) Volume of Goods and Services. Show Answer Correct Answer: A) Volume of Both Imports and Exports. 18. The president Trump has enacted tariff barriers China against China and a lot of people worried that China might retaliate and enact the same tariff barriers? This event involving: A) Trade war. B) A misallocation of recources. C) The national security. D) The national of domestic jobs. Show Answer Correct Answer: A) Trade war. 19. For the same question above (Japan can produce either 90 cars or 110 pounds of soybeans and South Korea can produce either 50 cars or 80 pounds of soybeans.) What will be the right range of terms of trade for the two countries to be willing to trade? A) 1.2 soybeas per car < TOT < 1.6 soybeas per car. B) 1.0 soybeas per car < TOT < 1.5 soybeas per car. C) 1.8 soybeas per car < TOT < 3.0 soybeas per car. D) 0.5 soybeas per car < TOT < 1.6 soybeas per car. Show Answer Correct Answer: A) 1.2 soybeas per car < TOT < 1.6 soybeas per car. 20. The theory of absolute advantage measures a nation's wealth by determining the ..... A) Amount of gold it has on reserve. B) Quantity of minerals it has on reserve. C) Total trade volume in the country. D) Living standards of its people. Show Answer Correct Answer: D) Living standards of its people. 21. Question 3:Export/Import financing in which a bank acts as an intermediary without accepting financial risk is called ..... A) Open account. B) Documentary collection. C) Documentary credit. D) Advance payment. Show Answer Correct Answer: B) Documentary collection. 22. Is principle refers to the ability of a party (an individual, firm, or country) to produce more of a good product or service than competitors, using the same number of resources A) Recardian theory. B) Ricardo Theory. C) Absolute advantage. D) Comparison Advantage. Show Answer Correct Answer: C) Absolute advantage. 23. The United States government raises the tariff on television sets to make the foreign sets sell for 10% more than those produced in America. Which of the following would result from changing tariff on these products? A) The price of TV's will decrease. B) Consumer's standard of living will increase. C) Consumer's standard of living will not be effected. D) Consumer's standard of living will decrease. Show Answer Correct Answer: D) Consumer's standard of living will decrease. 24. Which industry is responsible for enabling international customers to purchase goods from abroad? A) Editing and publishing. B) Landscaping and gardening. C) International trading. D) Sports event organization. Show Answer Correct Answer: C) International trading. 25. ..... is a function of international trade whereby goods produced in one country are shipped to another country for future sale or trade. A) Trade. B) Import quota. C) Tariff. D) Export. Show Answer Correct Answer: D) Export. 26. One of the following must be used as a starting point in order to perform an analysis that will determine what the connections between imbalances of trade in goods and services and the flows of international financial capital are. Which one is it? A) Define the level of trade. B) Sketch patterns of trade surpluses. C) Sketch patterns of trade deficits. D) Define the balance of trade. Show Answer Correct Answer: D) Define the balance of trade. 27. India signed a free trade agreement with A) South korea and north korea. B) Myanmar and ASEAN. C) South korea and ASEAN. D) China and hong kong. Show Answer Correct Answer: C) South korea and ASEAN. 28. What is the extra profit that producers make when supply is artificially limited by an import quota called? A) Quota rent. B) Antidumping duty. C) Tariff rate quota. D) Voluntary export restraint. Show Answer Correct Answer: A) Quota rent. 29. ..... are taxes on ..... A) Tariffs, imports. B) Tariffs, exports. C) Quotas, exports. D) Quotas, imports. Show Answer Correct Answer: A) Tariffs, imports. 30. What is one limitation of the theory of comparative advantage regarding the assumption of constant technology? A) It assumes that technology remains constant. B) It assumes that countries produce identical goods. C) It assumes that every country should specialize in producing the good with the lowest opportunity cost. D) It assumes that everyone has the same knowledge of prices and quantities in the market at the same time. Show Answer Correct Answer: A) It assumes that technology remains constant. ← 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