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International Trade Quiz 23 (25 MCQs)

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1. The theory of absolute advantage destroys the mercantilist's idea that international trade is:
2. To provide financing as well as business advisory services to Malaysian SMES
3. A country with a Trade Surplus:
4. Multilateral agreement regulating international trade
5. Imports are no longer restricted
6. These are also known as ferry ports.
7. What is the main purpose of imposing tariffs on imported goods?
8. A ready-to-use business that allows immediate operation is
9. A country has a fixed exchange rate. What is likely to result in a deterioration in its balance of payments? A a decrease in interest rates in foreign countries B a decrease in the country's interest rates C a decrease in the country's National IncomeD an increase in the income of foreign countries
10. An exchange rate is
11. Suppose two countries are each capable of individually producing two given commodities. Instead, each specializes by producing the commodity for which it has a comparative advantage and then trades with the other country. Which of the following is most likely to result?
12. Why is it easier to identify the costs than the benefits of international trade?
13. Spend some time driving in Detroit, MI-the Motor City-and you're sure to see bumper stickers with messages like "Buy American" or "Out of a job yet? Keep buying foreign!" or "Hungry? Eat your foreign car!" Explain these bumper stickers in light of what you've learned:Who is hurt most by imported automobiles?
14. GATT now been replaced by _____
15. What is the main reason behind introducing Euro as common currency
16. What is a benefit of specialization in trade?
17. An international payment method in which payments are made between a buyer and a seller in which the buyer receives the goods sent by the exporter and then makes payment at the end of the agreed credit period. The credit term can be of fixed duration-30 days, 60 days, 90 days, etc.
18. The activity of selling goods from within the country to abroad
19. A company may prolong a product's life cycle through international marketing by exporting a product that is in the standardize stage in its home market to a foreign market with high growth prospects _____
20. Those goods, raw materials, and services that are produced in one country and then sold in another
21. A transaction that takes money out of a country
22. Which two of the following are the most likely effects of the imposition of a tariff on an imported good?a) The domestic price of the imported good will fall b) Overseas production of the good may be stimulated c) Overseas employment will rise d) The domestic price of the imported good will rise e) Gain of tax revenue by the government
23. What PRIMARILY determines the point a producer chooses on their production possibility frontier?
24. Copying the original technology, producing imitative products, discourages foreign firms in expanding their business.
25. A focus on developing only certain skills or producing only certain goods/services
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