This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 36 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 36 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In order to promote trade, countries often ..... A) Restrict trade. B) Create trade barriers. C) Form trade agreements. D) All of the above. Show Answer Correct Answer: C) Form trade agreements. 2. The NT principles are regulated in the WTO agreement in..... A) Article 2 GATT-Article 16 GATS-Article 2 TRIPS. B) Everything is wrong. C) Article 3 GATT-Article 17 GATS-Article 3 TRIPS. D) Article 1 GATT-Article 15 GATS-Article 1 TRIPS. Show Answer Correct Answer: C) Article 3 GATT-Article 17 GATS-Article 3 TRIPS. 3. France imposes a limit on Avocado imports from Mexico. A) Tariff. B) Quota. C) Embargo. D) None of above. Show Answer Correct Answer: B) Quota. 4. What is most likely to discourage international specialisation and trade for an economy? A decreasing labour supply B decreasing transport costs C increasing oil prices D increasing trade barriers A) D. B) B. C) A. D) C. Show Answer Correct Answer: A) D. 5. When one country can produce a product with a lower opportunity cost than another country it is said to ..... A) Have a comparative advantage. B) Be operating outside the production possibilities curve. C) Have an absolute advantage. D) Have a more efficient production possibilities curve. Show Answer Correct Answer: A) Have a comparative advantage. 6. A joint venture does not give a firm the tight control over subsidiaries that it might need to realize experience learning curve or location economies. A) True. B) False. Show Answer Correct Answer: A) True. 7. India faced serious food shortages in 1950's and 1960's. So food grains were an important item of import. What changed this condition after 1970's? A) Decline in population. B) High Price of grains in International market. C) The success of Green revolution in India. D) Spread of epidemics. Show Answer Correct Answer: C) The success of Green revolution in India. 8. Of or belonging to a corporation, a business firm whose articles of incorporation have been approved in some state. A) Proprietary. B) Corporate. C) Free trade. D) Adaptation. Show Answer Correct Answer: B) Corporate. 9. Balance of Payments uses the ..... system of accounting. A) Single-entry. B) Double-entry. C) Cash basis. D) Accrual basis. Show Answer Correct Answer: B) Double-entry. 10. Why might Japan impose high tariffs on American automobiles imported into Japan? A) To increase U.S. sales of Japanese cars. B) To limit competition in Japan from American cars. C) To increase imports of American cars. D) To encourage American auto makers to make better cars. Show Answer Correct Answer: B) To limit competition in Japan from American cars. 11. The purpose why they create the Bretton wood system is to avoid World War 2 and depressions 2? A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 12. The difference between visible exports and visible imports is known as A) The balance of trade. B) The balance of payments. Show Answer Correct Answer: A) The balance of trade. 13. Ways that must be taken to create economic superiority include..... A) Developing the potential of various regional cultures. B) Produce products in large quantities. C) Encouraging the exploitation of natural resources. D) Producing goods that are not yet available domestically. Show Answer Correct Answer: A) Developing the potential of various regional cultures. 14. It is the exchange of goods and services between two countries. A) Investment. B) Export. C) Import. D) International Trade. Show Answer Correct Answer: D) International Trade. 15. Discuss the role of international trade in promoting peace and cooperation among nations. A) International trade can lead to conflict and competition among nations. B) International trade can only benefit one nation at the expense of others. C) International trade has no impact on fostering peace and cooperation among nations. D) International trade can promote peace and cooperation by creating economic interdependence and mutual benefits among nations. Show Answer Correct Answer: D) International trade can promote peace and cooperation by creating economic interdependence and mutual benefits among nations. 16. Which of the following can tend to favor big businesses and vested interests as they have the resources to lobby most effectively? A) Free Trade. B) Competitive Market. C) Protectionist Rules. D) Free Enterprise. Show Answer Correct Answer: C) Protectionist Rules. 17. The W T O works as: A) The association of transnational companies. B) The bank for countries. C) The voice of corporations. D) The referee on trade. Show Answer Correct Answer: D) The referee on trade. 18. The importance of trade for a nation can be measured by ..... A) Examining the amount of wealth acquired by the national government through restrictive trade policies. B) The living standards of people involved in only trade activities. C) The number of acquired territories the nation has that serves as sources of inexpensive raw materials. D) Examining the volume of its trade relative to its total output. Show Answer Correct Answer: D) Examining the volume of its trade relative to its total output. 19. GATT was established in ..... to liberalise the world from high custom tariffs and various other types of restrictions. A) 1848. B) 1948. C) 1748. D) 2008. Show Answer Correct Answer: B) 1948. 20. The proposal to conclude an insurance contract will be issued. A) The insured. B) Mediator. C) Insurer. D) Debtor. Show Answer Correct Answer: A) The insured. 21. Trade agreement which provides fair trade rules, reduction on tariffs and other trade barriers A) General Agreement on Tariffs and Trade. B) EFTA. C) Canada-European Free Trade Association. D) Trade Bloc. Show Answer Correct Answer: A) General Agreement on Tariffs and Trade. 22. In the Ricardian model, the distribution of the gains from trade depends on ..... A) The relative prices of the goods countries produce. B) A country's relative resources for producing goods. C) A country's investment in production. D) The wants and needs of a country's government. Show Answer Correct Answer: A) The relative prices of the goods countries produce. 23. Which of the following is NOT an advantage of world trade? A) Expands market. B) Creates and raises competition. C) Increases availability of natural resources. D) Eliminates local companies due to foreign competition. Show Answer Correct Answer: D) Eliminates local companies due to foreign competition. 24. The main challenges in international trade are A) Currency differences. B) High tariff restrictions. C) Huge global market demand. D) Cheap availability of technology. Show Answer Correct Answer: B) High tariff restrictions. 25. What is the term for when a firm can produce a particular good more efficiently than any other firm? A) Dumping. B) Absolute advantage. C) Specialization. D) Comparative advantage. Show Answer Correct Answer: B) Absolute advantage. 26. A ..... is another name for a "producer" . A) Manufacturer. B) Vendor. C) Seller. D) Supplier. Show Answer Correct Answer: A) Manufacturer. 27. The exchange of goods and services between countries. A) Imports. B) Trading. C) International Trade. D) Domestic Trade. Show Answer Correct Answer: C) International Trade. 28. According to him/them, a country's prosperity should be determined by the living conditions of its residents, not by the amount of gold and other precious metals it possesses. He also coined the Absolute Advantage Theory. A) Adam Smith. B) Heckscher and Ohlin. Show Answer Correct Answer: A) Adam Smith. 29. Determine which country has the comparative advantage:Cuba takes 4 hours to make a TV and 12hrs to make a salsa Mexico takes 1 hour to make a TV and 5 hours to make a salsa A) Mexico. B) Cuba. C) Both options are correct. D) None of above. Show Answer Correct Answer: A) Mexico. 30. It the activity that occurs when a company exports goods or services to consumers in another country A) Globalized. B) Globalized agreements. C) Globalization. D) International trade. Show Answer Correct Answer: C) Globalization. ← 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