This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 30 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 30 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which model looks at the income distribution between countries that trade? A) Factors proportion theory. B) New trade theory. C) Comparative advantage model. D) Specific factors model. Show Answer Correct Answer: D) Specific factors model. 2. A union which promotes free movement of goods and workers across borders in Euroupean countries. A) APEC. B) NAFTA. C) EU. D) ASEAN. Show Answer Correct Answer: C) EU. 3. The tax that the United States imposes on imported carbon steel products is called a tariff. A) False. B) True. Show Answer Correct Answer: B) True. 4. According to Strategic Trade Policy, many developing countries have a potential comparative advantage in manufacturing, but new manufacturing industries cannot initially compete with established industries in developed countries. A) False. B) True. Show Answer Correct Answer: A) False. 5. Which theory listed below is also called the Heckscher-Ohlin theory? A) Comparative advantage. B) Relative advantage. C) Specialization of countries. D) Relative factor endowments. Show Answer Correct Answer: D) Relative factor endowments. 6. One of Indonesia's export commodities produced from industrial businesses is..... A) Rattan. B) Rubber latex. C) Coal. D) Plywood. Show Answer Correct Answer: D) Plywood. 7. Intra-industry trade refers to while re-export refers to A) Import and then export of the same good, (2) Import and export of the same category of goods. B) Firms in the same industry trading with one another, (2) Import and export of the same category of goods. C) Firms in the same industry trading with one another, (2) Import and then export of the same good. D) Import and export of the same category of goods, (2) Import and then export of the same good. Show Answer Correct Answer: D) Import and export of the same category of goods, (2) Import and then export of the same good. 8. In absolute advantage theory, with specialization, total world output will ..... A) Fluctuate. B) Increase. C) Remain unchanged. D) Decrease. Show Answer Correct Answer: B) Increase. 9. International trade is also a branch of ..... A) Economics. B) Economical. C) Economic. D) None of above. Show Answer Correct Answer: A) Economics. 10. From a macroeconomic perspective, if GDP economic indicators show a decline of 10% or more in a single year, then which of the following outcomes is most likely to result? A) Deep economic recession. B) Influx of foreign capital. C) Lessening of foreign aid. D) Merchandise trade surplus. Show Answer Correct Answer: A) Deep economic recession. 11. What is the term for a multinational corporation that makes, markets, and services products in different countries? A) Domestic corporation. B) Global corporation. C) International corporation. D) Transnational corporation. Show Answer Correct Answer: D) Transnational corporation. 12. The following are shipping documents required for import-export custom clearance activities, except..... A) COO. B) P/L. C) EIR. D) B/L. Show Answer Correct Answer: C) EIR. 13. International trade tends to encourage companies to be more competitive, thus forcing prices down and increasing quality A) False. B) True. Show Answer Correct Answer: B) True. 14. A nation's position in factors of production can lead to competitive advantage A) True. B) False. Show Answer Correct Answer: A) True. 15. What is the primary purpose of a Protective Tariff A) To generate government revenue. B) To promote international cooperation. C) To shield domestic industries. D) To encourage Free Trade. Show Answer Correct Answer: C) To shield domestic industries. 16. TCO is the purchase price minus hidden costs (all cost elements of the product) A) Salah. B) Correct. Show Answer Correct Answer: A) Salah. 17. Resources available = 200 units for each country Production in GhanaCocoa = 10 tonsRice = 5 tons Production in South KoreaCocoa = 2.5 tonsRice = 10 tons Question:South Korea has the absolute advantage in producing which product? A) Cocoa. B) Rice. Show Answer Correct Answer: B) Rice. 18. A tax of 20 cents per unit of imported garlic is an example of a(n) A) Nominal tariff. B) To the value of the tariff. C) Effective protection tariff. D) Specific tariff+. Show Answer Correct Answer: D) Specific tariff+. 19. (a) kilometers of undersea cables carry the world's emails, searches, and tweets, facilitating global connectivity. A) A 1 million. B) 100, 000. C) 1, 000. D) 10, 000. Show Answer Correct Answer: A) A 1 million. 20. If a Canadian were visiting family in the United States, he/she would need ..... A) To exchange currencies. B) To cross the Canadian Shield. C) A translator. D) A map. Show Answer Correct Answer: A) To exchange currencies. 21. World Trade Organisation (WTO) was established in A) 1996. B) 1995. Show Answer Correct Answer: B) 1995. 22. General Agreement on Tariffs and Trade is a precursor of A) World Bank. B) European Union. C) International Monetary Fund. D) World Trade Organization. Show Answer Correct Answer: D) World Trade Organization. 23. According to the documentary collection, what are the role of banks? A) (A) Money transfer. B) (B) Document handling. C) (C) Payment guarantee. D) Only (A) & (B). E) Only (A), (B) & (C). Show Answer Correct Answer: D) Only (A) & (B). 24. Which theory argues that each country should produce and export products that intensively use relatively abundant factors of production, and import goods that intensively use relatively scarce factors of production? A) Factor Endowments Theory. B) Free Trade Theory. C) Early Trade Theory. D) International Product Life Cycle Theory. Show Answer Correct Answer: A) Factor Endowments Theory. 25. United States is considered the ..... largest export A) First Place. B) Second Place. C) Third Place. D) Fourth Place. Show Answer Correct Answer: B) Second Place. 26. What is a benefit of international trade? A) It allows countries to more efficiently use their resources and leads to a higher standard of living. B) Companies gain access to more markets leading to more profits, which leads to reinvestment back home. C) Consumers gain access to a greater variety goods. D) All of the above. Show Answer Correct Answer: D) All of the above. 27. If the U.S. dollar depreciates relative to another currency, which of the following is most likely to occur? A) U.S. government will increase the tariff on goods from that country. B) U.S. exports will increase to that country. C) U.S. tourists will visit that country in greater numbers. D) U.S. trade deficit will become larger to that country. Show Answer Correct Answer: B) U.S. exports will increase to that country. 28. A country has a favourable balance of trade when A) There are no restrictions to trade. B) It sells more than it buys. C) It buys more than it sells. D) Imported goods are cheaper. Show Answer Correct Answer: B) It sells more than it buys. 29. Increases government funds A) Revenue Tariff. B) Local Tariff. C) Global Tariff. D) State Tariff. Show Answer Correct Answer: A) Revenue Tariff. 30. To capitalize on distinctive resources or capabilities already developed at home what aspect of why firms expand internationally best describes this statement? ..... A) MARKET MOTIVES. B) STRATEGIC MOTIVES. C) DEFENSIVE MOTIVES. D) ECONOMIC MOTIVES. Show Answer Correct Answer: B) STRATEGIC MOTIVES. ← 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