This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 24 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 24 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. It refers to a policy that promotes unrestricted exchange of goods and services between countries. It typically involves the removal or reduction of trade barriers, such as tariffs and quotas. A) Free trade. B) Tariff. Show Answer Correct Answer: A) Free trade. 2. How are exchange rates determined? A) Exchange rates are determined by the stock market. B) Exchange rates are determined by the government. C) Exchange rates are determined by the weather conditions. D) Exchange rates are determined by the foreign exchange market. Show Answer Correct Answer: D) Exchange rates are determined by the foreign exchange market. 3. This term means the seller is responsible for the goods until they are loaded. A) FOB. B) CFR. Show Answer Correct Answer: A) FOB. 4. International business is an activity of buying and selling of commodities and manufacturing of goods (services) across national borders and at global and/or international scale. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 5. What is a quota in international trade? A a government grant to encourage production B an administrative and technical barrier C a limit on the quantity of imports D a tax on imports A) A. B) B. C) C. D) D. Show Answer Correct Answer: C) C. 6. A tax of 20 cents per unit of imported cheese would be an example of a (an): A) Effective tariff. B) Specific tariff. C) Compound tariff. D) To the value of the tariff. Show Answer Correct Answer: B) Specific tariff. 7. Government sets regulations to ensure safety of goods. A) Embargo. B) Standard. C) Subsidy. D) None of above. Show Answer Correct Answer: B) Standard. 8. International Trade allows countries to specialise A) Yes, I understand this from the notes. B) No, I don't understand this from the notes. C) No, I don't understand this, as I have not read the notes. D) None of above. Show Answer Correct Answer: A) Yes, I understand this from the notes. 9. ..... refers sale of good abroad at a price below their cost and below the price charged in the domestic market. A) Transit Tariff. B) Dumping. C) Quota. D) Export Subsidies. Show Answer Correct Answer: B) Dumping. 10. What year that the 44 countries attended the conference to restructure International Finance and currency relationship? A) MARCH 1934. B) JUNE 1944. C) JULY 1944. D) JULY 1945. Show Answer Correct Answer: C) JULY 1944. 11. Insurance guarantee is..... A) The fee paid by the policyholder to the insurer for insuring the insured item, and the premium is calculated based on the value of the insurance. B) Funds to be paid by the insurer to the insured in the event of an insured event under the contract. C) It is a document issued by the insurance company to the insured confirming the insurance and is an integral part of the insurance contract. D) The damage caused to the insured item and the fulfillment of the conditions specified in the contract. Show Answer Correct Answer: C) It is a document issued by the insurance company to the insured confirming the insurance and is an integral part of the insurance contract. 12. According to the factor price equalization theorem, the owners of ..... factor should oppose free trade policies in any given country A) Can't tell without more information. B) Scarce. C) Neither. D) Abundant. Show Answer Correct Answer: B) Scarce. 13. If there is only a single seller or supplier in a market, this is called A) Competition. B) Collusion. C) Commander. D) Monopoly. Show Answer Correct Answer: A) Competition. 14. The characteristic of a society in which people rely on others for most of the goods and services they want. A) Economic Self-Sufficiency. B) Economic Interdependence. Show Answer Correct Answer: B) Economic Interdependence. 15. The part of a nation's balance of payments accounts that deals only with its imports and exports of goods. A) Balance of Payments. B) Trade Surplus. C) Trade Failure. D) Balance of Trade. Show Answer Correct Answer: D) Balance of Trade. 16. What is the domestic employment argument for government intervention in international trade? A) To promote industrialization. B) To prevent unemployment. C) To improve position compared to other countries. D) To protect infant industries. Show Answer Correct Answer: B) To prevent unemployment. 17. How many types of risk insurance are there in international trade? A) 2. B) 4. C) 6. D) 5. Show Answer Correct Answer: D) 5. 18. A reduction in the maximum limit of one type of allowed subsidies called? A) Exchange Controls. B) Voluntary Export Restraints. C) By Minimis. D) Quotas. Show Answer Correct Answer: C) By Minimis. 19. Focuses their attention on 144 of the world's trading nations A) World Trade Organization. B) World Bank. C) International Monetary Fund. D) None of above. Show Answer Correct Answer: A) World Trade Organization. 20. What is the term for a government policy to abolish or relax a law or rule concerning some aspect of business? A) Protectionism. B) Deregulation. C) Import restriction. D) Export subsidy. Show Answer Correct Answer: B) Deregulation. 21. How do trade barriers affect consumers and producers in a country? A) Trade barriers have no impact on consumers and producers. B) Trade barriers can increase prices for consumers and protect domestic producers from foreign competition. C) Trade barriers decrease prices for consumers and harm domestic producers. D) Trade barriers have a minimal effect on prices for consumers and producers. Show Answer Correct Answer: B) Trade barriers can increase prices for consumers and protect domestic producers from foreign competition. 22. What would happen to the prices of American goods in Japan if the exchange rate between the United States and Japan changes from USD1=100 yen to USD1=110 yen? A) Increase. B) Remain the same. C) Increase or decrease. D) Decrease. Show Answer Correct Answer: A) Increase. 23. Leontief results were considered paradoxical because the United States was believed to be A) Technologically efficient relative to the rest of the world. B) Capital abundant relative to the rest of the world. C) Labour abundant relative to the rest of the world. D) All of the above. Show Answer Correct Answer: D) All of the above. 24. What is a tax paid on imports? A) Embargo. B) Tariff. C) Quota. D) Subsidy. Show Answer Correct Answer: B) Tariff. 25. Mercantilism is a belief, popular in the ( ), that national prosperity results from maximizing exports and minimizing imports. A) 20th century. B) 16th century. C) 15th century. D) 21st century. Show Answer Correct Answer: B) 16th century. 26. Which statement is not a valid justification for an import tariff? A A tariff will prevent imported inflation. B A tariff will prevent unfair foreign competition. C A tariff will protect a developing industry. D A tariff will protect an industry in decline. A) D. B) C. C) B. D) A. Show Answer Correct Answer: D) A. 27. What is the term for when the value of a country's exports is greater than the value of its imports? A) Trade agreement. B) Trade fails. C) Trade surplus. D) Trade balance. Show Answer Correct Answer: C) Trade surplus. 28. What is the term for the true cost of something, which includes what has to be given up in order to obtain it? A) Trade balance. B) Protectionism. C) Specialization. D) Opportunity cost. Show Answer Correct Answer: D) Opportunity cost. 29. An excess of imports over exports A) Trade surplus. B) Surplus. C) Balance of trade. D) The trade fails. Show Answer Correct Answer: D) The trade fails. 30. Japan exports Toshiba Computers to the United States, and the United States exports Apple Computers to Japan. This is an example of ..... A) Diversification. B) Interindustry trade. C) Intraindustry trade. D) Mercantilism. Show Answer Correct Answer: C) Intraindustry trade. ← 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