This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 25 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 25 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A large portion of trade both within and between nations is driven by external economies. A) True. B) False. Show Answer Correct Answer: A) True. 2. Which mean takes more time to arrive to the destiny? A) Airplane. B) Truck. C) Ship. D) None of above. Show Answer Correct Answer: C) Ship. 3. In order to know whether a country has a comparative advantage in the production of one particular product, we need information on at least ..... unit labor requirements A) 3. B) 2. C) 1. D) 4. Show Answer Correct Answer: D) 4. 4. What are some negatives of globalization? Check if all that apply. A) Workers are exploited in sweatshops. B) Pollution and deforestation. C) Low wages for factory workers in Asia and Africa. D) All of the answers are correct. Show Answer Correct Answer: D) All of the answers are correct. 5. If Sue can mow 3 yards or bake 2 cakes in a daywhile John can mow 1 yard or bake 1 cake in a day it can be said that ..... A) Sue has a comparative advantage in mowing lawns while John has a comparative advantage in baking cakes. B) Sue has a comparative advantage in baking cakes while John has a comparative advantage in mowing lawns. C) Both Sue and John have comparative advantages in baking. D) Sue has the absolute advantage in both activities and therefore would not benefit by trading with John. Show Answer Correct Answer: A) Sue has a comparative advantage in mowing lawns while John has a comparative advantage in baking cakes. 6. Xie Xiao Mei is responsible for the duty of international trade in a company. Which of the following items should Miss Xie manage?I Foreign exchange ratesII Customs clearance proceduresIII Product design and developmentIV FOB and CIF A) And I, II, III. B) B I, II, IV. C) C III, IV. D) D II, III, IV. Show Answer Correct Answer: B) B I, II, IV. 7. When a country RECEIVES goods or services from other countries A) Imports. B) Trade. C) Exports. D) Specialization. Show Answer Correct Answer: A) Imports. 8. What is not a problem do to trade? A) Trade barriers. B) Lay-offs. C) Trade wars. D) Higher prices. Show Answer Correct Answer: A) Trade barriers. 9. A primitive system of trade where direct exchange of goods take place: A) Local Trade. B) National Trade. C) International Trade. D) Barter Trade. Show Answer Correct Answer: D) Barter Trade. 10. The US congress passed the Deep Water Royalty Relief Act in 1995, enabling US oil companies to drill on federal land without paying the government to do so. A) Tariff. B) Quota. C) Standard. D) Subsidy. E) Embargo. Show Answer Correct Answer: D) Subsidy. 11. The simple example of comparative advantage assumes: A) Dissimilar prices and values. B) Constant returns to scale. C) A and B. D) None of the above. Show Answer Correct Answer: B) Constant returns to scale. 12. If the United States imports $ 150 million of goods and exports $ 100 million of goods, what does the United States have? A) Budget deficit. B) Budget surplus. C) The trade fails. D) Trade surplus. Show Answer Correct Answer: C) The trade fails. 13. A good partner is unlikely to try to opportunistically exploit the alliance for its own ends. A) True. B) False. Show Answer Correct Answer: A) True. 14. International trade takes place when market expands to get ..... that otherwise may not have been available to it. A) Government permission. B) Goods and services. C) Foreign investment. D) Market access. Show Answer Correct Answer: B) Goods and services. 15. Why do nations trade? A) So they can specialize. B) Because they believe that the products they receive are worth more that the products they give up. C) Because they need to acquire certain raw materials. D) All of the answers. Show Answer Correct Answer: D) All of the answers. 16. What is the purpose of devaluing a currency? A) To make imports more expensive and exports more competitive. B) To make imports cheaper and exports less competitive. C) To stabilize the exchange rate. D) To encourage foreign investments. Show Answer Correct Answer: A) To make imports more expensive and exports more competitive. 17. A trader of one country purchases any goods and products from the trader of any country. A) Entrepot Trade. B) Entrepot Trade. C) External Trade. D) Entrepot Trade. Show Answer Correct Answer: A) Entrepot Trade. 18. Which term refers to the practice of selling goods abroad at a price lower than the domestic market? A) Dumping. B) Import quota. C) Export subsidy. D) Trade fails. Show Answer Correct Answer: A) Dumping. 19. Which of the following do International Trade laws tend to include? A) Service-Based regulations. B) Supply& Demand-based regulations. C) Supervision Management regulations. D) Tariff-Based regulations. Show Answer Correct Answer: D) Tariff-Based regulations. 20. The GATT design under the Us-led trade regime caused: A) More universal binding rules. B) Higher tariffs. C) Adjustment programs for workers and firms. D) None of above. Show Answer Correct Answer: A) More universal binding rules. 21. Efforts to resolve disputes between WTO member countries through a bilateral consultation process can be implemented through..... A) Mutually Beneficial Solutions. B) Mutually Agreed Solution. C) Mutual Agreed Mechanism. D) Mutual Beneficial Mechanism. Show Answer Correct Answer: B) Mutually Agreed Solution. 22. Which of the following are weak due to the lack of human and financial resources? A) US African Data. B) African Statistical Systems. C) Universal Data. D) Statistical Data. Show Answer Correct Answer: B) African Statistical Systems. 23. Agreements between two countries are known as? A) Free Trade Agreement. B) Bilateral. C) Multilateral. D) Tariffs. Show Answer Correct Answer: B) Bilateral. 24. Countries have different rates of productivity due to their natural resources, climate, technology, labor costs, and other factors. This represents the country's comparative advantage. A) FALSE. B) TRUE. Show Answer Correct Answer: A) FALSE. 25. This theory emerged in the 1980s and was based on the work of economists Paul Krugman and Kevin Lancaster. A) Global Strategic Rivalry Theory. B) Heckscher-Ohlin Theory. C) Product Life Cycle Theory. D) Leontief Paradox. Show Answer Correct Answer: A) Global Strategic Rivalry Theory. 26. Helps young domestic businesses across borders A) Free Trade. B) Protectionism. Show Answer Correct Answer: B) Protectionism. 27. Money that is used within a specific area or country A) Currency. B) Exchange rate. C) Exchange. D) Eurozone. E) Euro. Show Answer Correct Answer: A) Currency. 28. What is the flexible rate of exchange? A) A system where the value of a currency is determined by the balance of trade. B) A system where the currency of one nation is fixed in relation to other currencies. C) A system where the exchange rate for currency changes based on supply and demand. D) A system where the value of a currency is determined by the price of gold. Show Answer Correct Answer: C) A system where the exchange rate for currency changes based on supply and demand. 29. Which country is NOT the member of NAFTA? A) USA. B) CANADA. C) MEXICO. D) BRAZIL. Show Answer Correct Answer: D) BRAZIL. 30. If the Fed has low reserve requirements for banks that will A) Increase the money supply. B) Lower the money supply. Show Answer Correct Answer: A) Increase the money supply. ← 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