This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 26 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 26 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Command economy is different from market economy where ..... determines what to produce, how to produce and for whom to produce. A) Individuals. B) Firms. C) Households. D) Government. Show Answer Correct Answer: D) Government. 2. Once a currency is established, it stays the same and never changes. A) False. B) True. Show Answer Correct Answer: A) False. 3. Free Traders advocate for: A) Implementing quotas on imports. B) Restricting international trade. C) Unrestricted international trade. D) Protecting domestic industries. Show Answer Correct Answer: C) Unrestricted international trade. 4. These are abstract ideas about what a group believes to be good, right, and desirable. A) Norms. B) Values. C) Culture. D) None of above. Show Answer Correct Answer: B) Values. 5. Which economic theory and political ideology is opposed to free trade and believes that each state must protect its own interests without seeking mutual gains through international organizations? A) Mercantilism. B) Dumping. C) Protectionism. D) Economic liberalism. Show Answer Correct Answer: A) Mercantilism. 6. Trade agreements are made to help ..... the abiltiy to trade with other countries: A) Hinder. B) Ease. Show Answer Correct Answer: B) Ease. 7. The ..... lists the goods being carried and must remain with the merchandise at all times. A) Letter of credit. B) Bill of lading. Show Answer Correct Answer: B) Bill of lading. 8. If the United States has a balance of trade deficit, it means that A) The U.S. imports more products from China than it exports to China. B) U.S. dollars are more valuable in China than the Chinese currency is in the U.S. C) The U.S. exports more products to China than it imports from China. D) American companies are investing more in their operations in China than China is investing in the United States. Show Answer Correct Answer: A) The U.S. imports more products from China than it exports to China. 9. We have an ..... oil rig 10 kilometres away from the coast. A) Flagship. B) Capacity. C) Cargo. D) Offshore. Show Answer Correct Answer: D) Offshore. 10. According to the text, what is the point on which most economists agree? A) Trade among nations makes the world worse off. B) Trade among nations has no impact on the world. C) Trade among nations makes the world better off. D) Trade among nations is irrelevant. Show Answer Correct Answer: C) Trade among nations makes the world better off. 11. All of the following are benefits of international business except A) Expanded business opportunities. B) Increased sources of raw materials. C) Decreased competition. D) Improved political relationships. Show Answer Correct Answer: C) Decreased competition. 12. Purchasing the right to use a company name or business process in a specific way ex. McDonald's, Burger King, KFC and Pizza Hut * * A) Joint venture. B) Licensing. C) Infrastructure. D) Franchising. Show Answer Correct Answer: D) Franchising. 13. Negative impacts of multinational companies include: A) Destruction of the environment. B) Increased job opportunities. C) Investment in the infrastructure. D) Increased customer choice. Show Answer Correct Answer: A) Destruction of the environment. 14. What is one limitation of the theory of comparative advantage regarding the assumption of producing identical goods? A) It assumes that every country should specialize in producing the good with the lowest opportunity cost. B) It assumes that technology remains constant. C) It assumes that countries produce identical goods. D) It assumes that everyone has the same knowledge of prices and quantities in the market at the same time. Show Answer Correct Answer: C) It assumes that countries produce identical goods. 15. What happens to imports when the value of the dollar increases? A) Imports become less expensive. B) Imports stay the same. C) Imports are not affected. D) Imports become more expensive. Show Answer Correct Answer: A) Imports become less expensive. 16. Comparative advantages show: A) Who can make more items. B) Outcomes without trading. C) Competition within countries. D) Who should produce what item at the lowest cost. Show Answer Correct Answer: D) Who should produce what item at the lowest cost. 17. The document that probes that a restricted type of goods is permitted to be imported is ..... A) Certificate of Origin. B) Certificate of compliance. C) Single Administrative Document. D) Export Licence. Show Answer Correct Answer: D) Export Licence. 18. Goods or services purchased from firms in other countries and brought into a country are called A) Exports. B) Production costs. C) Profits. D) Imports. Show Answer Correct Answer: C) Profits. 19. In 2017, which economy was Singapore's largest trade partner for goods? A) EU. B) China. C) US. D) Malaysia. Show Answer Correct Answer: B) China. 20. A ban on all trade. A) Embargo. B) Standard. C) Subsidy. D) None of above. Show Answer Correct Answer: A) Embargo. 21. With its given resources, Country X can produce either 200 computers or 800 handbags. Which of the following terms of trade will be beneficial to Country X if Country X exports handbags? A) 1 computer = 5 handbags. B) 1 handbag = 0.1 computer. C) 1 computer = 4 handbag. D) I handbag = 0.5 computer. Show Answer Correct Answer: D) I handbag = 0.5 computer. 22. Brazil is a leading producer of sugarcane, and the United States is the leading producer of crude oil. Based on this information, why should Brazil trade with the United States? A) Brazil has an absolute advantage in sugarcane and crude oil . B) The United States has an absolute advantage in sugarcane and crude oil. C) Brazil has an absolute advantage in crude oil and the United States has an absolute advantage in sugarcane. D) Brazil has a comparative advantage in sugarcane and the United States has a comparative advantage in crude oil. Show Answer Correct Answer: D) Brazil has a comparative advantage in sugarcane and the United States has a comparative advantage in crude oil. 23. Made or produced or distributed by one having exclusive rights. A) Multinational. B) Balance of trade. C) Proprietary. D) Infrastructure. Show Answer Correct Answer: C) Proprietary. 24. A classification of Human Wants that cannot be bought or satisfied using money such as peace, love, hope, etc. A) Economic Wants. B) Non-Economic Wants. Show Answer Correct Answer: B) Non-Economic Wants. 25. Improve the welfare of member countries A) International Monetary Fund. B) World Bank. C) World Trade Organization. D) None of above. Show Answer Correct Answer: C) World Trade Organization. 26. BTKI related to international trade in Indonesia means: A) Indonesian Financial Rate Book. B) Added Duty on Import Activities. C) Indonesian Customs Tariff Fee. D) Indonesian Customs Tariff Book. Show Answer Correct Answer: D) Indonesian Customs Tariff Book. 27. What is a trading bloc? A) A group of countries that is created to reduce tariffs and other barriers. B) A trade agreement made between 2 countries. C) A trade agreement made between more than 2 countries. D) A group of countries that begin to use the same currency to aid in trading. Show Answer Correct Answer: A) A group of countries that is created to reduce tariffs and other barriers. 28. The large trade of Belgium and the Netherlands suggests what factor that plays an important role in determining the volume of trade? A) Transport Costs and Geography. B) Product Costs and Distance. C) Tariff Costs and Logistics. D) Trade Costs and National Borders. Show Answer Correct Answer: A) Transport Costs and Geography. 29. Adam Smith emphasised that specialisation on the basis of absolute cost advantage would lead to ..... of world production. A) Stabilization. B) Maximisation. C) Minimisation. D) Variability. Show Answer Correct Answer: B) Maximisation. 30. To impose certain conditions before granting consent. A) Embargo. B) Tariff. C) Standards. D) Quotas. Show Answer Correct Answer: A) Embargo. ← 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