This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 38 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 38 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In 2019 Nigeria exported $ 34 billion worth of goods, but imported $ 46 billion worth of goods. This is called a ..... A) Trade fails. B) Trade surplus. C) Trade balance. D) None of above. Show Answer Correct Answer: A) Trade fails. 2. The type of intermediary is..... A) Distribution channels and physical distribution. B) Digital and non-digital media. C) Wholesalers and retailers. D) Direct sales and trade intermediaries. Show Answer Correct Answer: C) Wholesalers and retailers. 3. Rates apply to activities: A) Export only. B) Import only. C) Export and import. D) All wrong. Show Answer Correct Answer: C) Export and import. 4. It is one of the reasons why firms expand internationally that used aggressive tactics like seizing market opportunities ..... A) OFFENSIVE MOTIVES. B) DEFENSIVE MOTIVES. C) ECONOMIC MOTIVES. D) MARKET MOTIVES. Show Answer Correct Answer: A) OFFENSIVE MOTIVES. 5. The lower the intensity of competitive pressure, the higher the price charged relative to the cost of product. A) True. B) False. Show Answer Correct Answer: B) False. 6. A tariff is a tax on what? A) Imported goods. B) Imports and exports. C) Agricultural products only. D) None of above. Show Answer Correct Answer: A) Imported goods. 7. It is largely theoretical policy under which governments impose absolutely no tariffs, taxes, or duties on imports or quotas on exports. A) Mercantilism. B) Free Trade. C) Protectionism. D) Voluntary Export. Show Answer Correct Answer: B) Free Trade. 8. A disadvantage of a nation having a merchandise deficit is that this deficit may require A) Decreasing the price of domestic goods. B) Borrowing money from the rest of the world. C) Increasing the price of imports. D) Buying more assets. Show Answer Correct Answer: B) Borrowing money from the rest of the world. 9. What gave the silk Road its name? A) Because China sent large amounts of silk along this road. B) Through people connecting with each other. C) Because it is made of many routes. D) Because they carried precious goods and the roads weren't safe. E) Because the roads were dangerous and nature was hard. Show Answer Correct Answer: A) Because China sent large amounts of silk along this road. 10. Barrier to trade that places a tax on imports A) Quotas. B) Standards/regulations. C) Tariff. D) Embargo. Show Answer Correct Answer: C) Tariff. 11. Which of the following is an example of an imported product? A) Apples grown in your own backyard. B) A toy made in a factory in another country. C) A handmade necklace bought from a local artisan. D) None of above. Show Answer Correct Answer: B) A toy made in a factory in another country. 12. Why do governments establish international trade policies and agreements? A) To restrict domestic industries. B) To protect domestic industries and promote exports. C) To discourage exports. D) To promote unfair competition. Show Answer Correct Answer: B) To protect domestic industries and promote exports. 13. Regional Integration is the agreement among nations who belongs in the same region or area to reduce or eliminate trade barriers, increase market size aggregate demand for goods and services, and economic activity. A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 14. Why do governments use tariffs? A) To protect domestic industries and jobs. B) To raise revenue. C) Both 1 & 2. D) To increase exports. Show Answer Correct Answer: C) Both 1 & 2. 15. What is NOT referred as a characteristic of international trade? A) Governmental Control. B) Foreign Currency. C) Comparative advantage. D) Separation of Buyers and Producers. Show Answer Correct Answer: C) Comparative advantage. 16. Formula of Intra-Industry Trade is ..... A) T = 1 + (|X+M|/X-M). B) T = 1 + (|X-M|/X+M). C) T = 1-(|X+M|/X-M). D) T = 1-(|X-M|/X+M). Show Answer Correct Answer: D) T = 1-(|X-M|/X+M). 17. Government makes payments to local suppliers to reduce the production costs of the supplier. A) Embargo. B) Standard. C) Subsidy. D) None of above. Show Answer Correct Answer: C) Subsidy. 18. The ability of an individual or group to carry out a particular economic activity (such as making a specific product) more efficiently than another activity. A) Comparative Advantage. B) International Trade. C) Equilibrium. D) Tariff. Show Answer Correct Answer: A) Comparative Advantage. 19. Fish caught off the coast of the UK is shipped to France. A) Import. B) Export. Show Answer Correct Answer: B) Export. 20. Exchange of goods and services among the nations of the world A) Absolute advantage. B) Exports. C) Imports. D) International trade. Show Answer Correct Answer: D) International trade. 21. What is the main change brought by the RTAA(1934)? A) It granted the president agenda control over tariff setting. B) It stipulated individual tariff reduction. C) It provided adequate adjustment programs for firms and workers. D) None of above. Show Answer Correct Answer: A) It granted the president agenda control over tariff setting. 22. What is exchange rate? A) The rate at which goods are exchanged between countries. B) The rate at which a country's currency is exchanged for another country's currency. C) The rate at which a country's imports and exports are balanced. D) The rate at which a country's financial assets are exchanged. Show Answer Correct Answer: B) The rate at which a country's currency is exchanged for another country's currency. 23. ..... suggest that FDI will be more likely to occur when transaction costs with a second firm are high. A) Ownership advantage theory. B) Internalization theory. C) National competitive advantage. D) Eclectic theory. Show Answer Correct Answer: B) Internalization theory. 24. Which of the following is NOT an argument for free trade?Increases competition, allows domestic goods to be sold all over the world, allows country to expose comparative advantage through specialization. A) Increase competition. B) Allow domestic goods to be sold worldwide. C) Allow countries to specialize through comparative advantage. D) Imposing subsidies to protect domestic interest. Show Answer Correct Answer: D) Imposing subsidies to protect domestic interest. 25. Specified area where raw materials and finished goods may be landed, stored, displayed, assembled, reconfigured and re-exported into customs territory and foreign points free of customs duties A) Trade Failure. B) Free Trade. C) Tariff. D) Free Trade Zone. Show Answer Correct Answer: D) Free Trade Zone. 26. Mercantilism was based on the idea that a nation's wealth and power were best served by reducing import. A) FALSE. B) TRUE. Show Answer Correct Answer: A) FALSE. 27. The record of all transactions between individuals, firms and governments of one country with those in all other countries in a given year, expressed in monetary terms. A) Trade Failure. B) Balance of Payments. C) Trade Surplus. D) Balance of Trade. Show Answer Correct Answer: B) Balance of Payments. 28. In ....., the GATT became the World Trade Organization (WTO), which now has more than 140 member countries. A) 1947. B) 1946. C) 1995. D) 1952. Show Answer Correct Answer: C) 1995. 29. Which of these are not trading blocs A) Customs union. B) Subsidiaries. C) Common market. D) Free trade area. Show Answer Correct Answer: B) Subsidiaries. 30. When a country allows for trade and becomes an exporter of the good, which of the following would NOT be true? A) The gains of domestic producers exceed the losses of domestic consumers. B) The price paid by the domestic consumer of the good increases. C) The price received by the domestic producers of the good increases. D) The losses of domestic consumers exceed the gains of domestic producers. Show Answer Correct Answer: D) The losses of domestic consumers exceed the gains of domestic producers. ← 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