This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 29 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 29 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following applies to a real-world socialistic economy? A) Private ownership of all factors of production. B) Government ownership of all factors of production. C) Government ownership of most of the factors of production. D) Lack of central planning. Show Answer Correct Answer: B) Government ownership of all factors of production. 2. U.S. is referred to the bread basket of the world because ..... A) All are true. B) We have a skilled workforce. C) We have a thriving agricultural industry. D) Of our ability to produce crops such as wheat and corn. Show Answer Correct Answer: A) All are true. 3. ..... deals in a large number of goods. A) Wholesaler. B) Agent. C) Retailer. D) Broker. Show Answer Correct Answer: C) Retailer. 4. What does the word INCOTERMS refer to? A) International Commercial Terms. B) International Common Terms. C) International Collaborative Terms. D) All of them are correct. Show Answer Correct Answer: A) International Commercial Terms. 5. The longest running embargo is? A) Russia's embargo on the US. B) The US embargo on Cuba. C) Cuba's embargo on Italy. D) Jamaica's embargo on Australia. Show Answer Correct Answer: B) The US embargo on Cuba. 6. Why do companies export goods? A) Expansion into an unsaturated market. B) Smoothing out sales (sesasonal items). C) Increasing sales and economic growth, which leads to new jobs. D) All of these. Show Answer Correct Answer: D) All of these. 7. Why is the market of each country different? A) Money exchange. B) International relationships. C) Culture and lifestyle, population demographic characteristics, demand and purchasing habits etc. D) Goverment and its economic politics. Show Answer Correct Answer: C) Culture and lifestyle, population demographic characteristics, demand and purchasing habits etc. 8. A trade deficit is A) Sustainable in the long-run. B) Never sustainable. C) Sustainable in the short-run. D) Sustainable in both the short and long run. Show Answer Correct Answer: C) Sustainable in the short-run. 9. Which of the following was the first international trade theory to account for changes in the patterns of trade over time? A) Product life cycle theory. B) Absolute advantage theory. C) Factor endowment theory. D) Comparative advantage theory. Show Answer Correct Answer: A) Product life cycle theory. 10. Decisions issued by the WTO dispute settlement system are..... A) Politically-binding. B) Economically-binding. C) Legally-binding. D) Sociologically-binding. Show Answer Correct Answer: C) Legally-binding. 11. In the Ricardian model, we can think of trade as ..... method of production. A) A direct. B) An incorrect. C) A correct. D) An indirect. Show Answer Correct Answer: D) An indirect. 12. International trading IMPORT-EXPORT What factors should you look at? A) Main product weight. B) Seller's requirements. C) Bank used. D) Transport mode, product type, conditions. Show Answer Correct Answer: D) Transport mode, product type, conditions. 13. Why do changing exchange rates help one country and hurt the other? A) One side loses purchasing power and the other gains it. B) Takes money away from one side and gives it to the other. C) Causes war between the two countries. D) One country's government introduces tariffs to protect local industries. Show Answer Correct Answer: A) One side loses purchasing power and the other gains it. 14. Which of the following strategies involves increasing the supply of a product so much that its prices drops severely, forcing similar products out of the market? A) Dumping. B) Specialization. C) Setting quotas. D) Trade restrictions. Show Answer Correct Answer: A) Dumping. 15. Advantage of specialization by a country A) Low productivity. B) Lack of skill. C) Country improves its efficiency. D) Labour turnover. Show Answer Correct Answer: C) Country improves its efficiency. 16. Dollars = 6 British Pounds 10 dollars = 7 Swiss Francs2019-10 dollars = 4 British Pounds 10 dollars = 8 Swiss Francs Which country would see an increase in American travelers? A) U.S. B) Switzerland. C) Great Britain. D) Coach Hayes. Show Answer Correct Answer: B) Switzerland. 17. It makes it possible for each country to produce a restricted range of goods and to take advantage of economies of scale without sacrificing variety of consumption. A) International Trade. B) Trade Agreement. C) Economies of Scale. D) Comparative Advantage. Show Answer Correct Answer: A) International Trade. 18. Opposite of 'increase' A) Fall. B) Climb. C) Rise. D) Upwards. Show Answer Correct Answer: A) Fall. 19. The main promoter of trade liberalization and settlement of dispute A) OPEC. B) USMCA. C) WTO. D) EU. Show Answer Correct Answer: C) WTO. 20. Which of the following is NOT a level of economic integration? A) Political union. B) Political democracy. C) Free trade. D) Custom union. Show Answer Correct Answer: B) Political democracy. 21. In an hour, David can wash 2 cars or mow 1 lawn, and Ron can wash 3 cars or mow 1 lawn. Who has the absolute advantage in car washing, and who has the absolute advantage in lawn mowing? A) David in washing, neither in mowing. B) David in washing, Ron in mowing. C) Ron in washing, neither in mowing. D) Ron in washing, David in mowing. Show Answer Correct Answer: C) Ron in washing, neither in mowing. 22. What is another way to accommodate a deficit in the balance of payments? A) Reducing exports. B) Eliminating all restrictions. C) Drawing on (removing some of) the reserves. D) Limiting the money supply. Show Answer Correct Answer: C) Drawing on (removing some of) the reserves. 23. Trading partners who are signatories of the GATT, as most are, automatically receive MFN status. A) False. B) True. Show Answer Correct Answer: A) False. 24. If Maybank has an account in a Singaporean Bank, it is:- A) Your Account. B) Nostro Account. Show Answer Correct Answer: B) Nostro Account. 25. Brazil is 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) The United States has an absolute advantage in sugarcane and crude oil. B) Brazil has an absolute advantage in sugarcane and the United States has an absolute advantage in crude oil. C) Brazil has an absolute advantage in crude oil and the United States has an absolute advantage in sugarcane. D) Brazil has an absolute advantage in sugarcane and crude oil. Show Answer Correct Answer: B) Brazil has an absolute advantage in sugarcane and the United States has an absolute advantage in crude oil. 26. Marcopolo traveled from Europe to which country A) China. B) Singapore. C) UK. D) America. Show Answer Correct Answer: A) China. 27. The principle that a country benefits from specializing in the production at which it is relatively most efficient thus has the comparative advantage. This is true because of lower opportunity costs A) Globalization. B) Exports. C) Law of Comparative Advantage. D) Law of Incresing Costs. Show Answer Correct Answer: C) Law of Comparative Advantage. 28. It enables the managers to walk away from a decision that is profitable, but unethical. A) Decision-making process. B) Ethics officers. C) Moral courage. D) None of above. Show Answer Correct Answer: C) Moral courage. 29. If Spain can produce 10 tons of olives or 1 ton of olive oil and Italy can produce 5 tons of olives and 5 tons of olive oil, then A) Spain has the absolute advantage in producing olive oil. B) Spain has the comparative advantage in producing olives. C) Italy has the absolute advantage in producing olives. D) Italy has the comparative advantage in producing olives. E) All of these. Show Answer Correct Answer: B) Spain has the comparative advantage in producing olives. 30. Is the wholesale and retail trades are the types of foreign trade? A) Yes. B) No. Show Answer Correct Answer: B) No. ← 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