This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 39 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 39 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. TRIPS regulations oblige WTO members to all of the following EXCEPT: A) Grant and enforce patents lasting for at least 20 years. B) Comply with the rules within 5 year for rich countries. C) Grant and enforce copyrights lasting for 50 years. D) Comply with the rules within 10 year for poorest countries. Show Answer Correct Answer: B) Comply with the rules within 5 year for rich countries. 2. The value of one currency in terms of another. A) Exchange Rate. B) Term Currency. C) Currency Term. D) None of above. Show Answer Correct Answer: A) Exchange Rate. 3. ..... permits the international firms to get the goods produced on a large scale without requiring investment in setting up production facilities. A) Joint venture. B) Franchising. C) Wholly owned subsidiary. D) Contract manufacturing. Show Answer Correct Answer: D) Contract manufacturing. 4. Which countries are members of NAFTA? A) America, Mexico, and Europe. B) America, Soviet Union, and Mexico. C) Aztecs, Mayans, and Incans. D) America, Mexico, and Canada. Show Answer Correct Answer: D) America, Mexico, and Canada. 5. What can be imposed to reduce imports and protect domestic industries? A) Subsidies and tax breaks. B) Tariffs and quotas. C) Deregulation and free trade agreements. D) Currency devaluation. Show Answer Correct Answer: B) Tariffs and quotas. 6. What is the term for buying goods or services from abroad? A) Export. B) Manufacture. C) Domestic. D) Import. Show Answer Correct Answer: D) Import. 7. Why the Silk Road described as a "network" ? 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: C) Because it is made of many routes. 8. What is the term for when two companies join together for mutual gain in a collaborative business venture they own jointly? A) Acquisition. B) Joint venture. C) Merge. D) Merger. Show Answer Correct Answer: B) Joint venture. 9. Goods produced in one country, then shipped to another region or country A) Imports. B) Embargo. C) Exports. D) Tariff. Show Answer Correct Answer: C) Exports. 10. What is the World Bank Group's main goal? A) To promote business. B) To help countries import and export goods. C) To keep countries from arguing over goods and services. D) To eradicate poverty. Show Answer Correct Answer: D) To eradicate poverty. 11. Taxes on the import or export of goods from a country A) Tariff. B) Embargo. Show Answer Correct Answer: A) Tariff. 12. When two countries engaged in free trade benefit, this means that everyone in both countries benefits. A) False. B) True. Show Answer Correct Answer: A) False. 13. A tax on imported goods designed to protect domestic producers from foreign competition; a type of trade barrier. A) VER. B) Trade Embargo. C) Import Quota. D) Protective Tariff. Show Answer Correct Answer: D) Protective Tariff. 14. Which countries are most directly affected by NAFTA? A) The United States, Canada, and Mexico. B) Members of the World Trade Organization. C) The United Kingdom, France, and Germany. D) All of the most favored nations (MFNs). Show Answer Correct Answer: A) The United States, Canada, and Mexico. 15. The total market value of all final goods or services produced in a year. A) Specialization. B) GDP. C) Export. D) GDP Per Capita. Show Answer Correct Answer: B) GDP. 16. What is the term for a transaction in which one company buys another company? A) Acquisition. B) Joint venture. C) Merger. D) Merge. Show Answer Correct Answer: A) Acquisition. 17. Nation 1 is K-abundance and Nation 2 is L-abundance A) True. B) False. Show Answer Correct Answer: B) False. 18. The table below shows the production alternatives of Country A and Country B for producing computers and cars with equal amounts of resources that are fully and efficiently employed.Country ..... Computers ..... CarsA ..... $\rightarrow$24 ..... $\rightarrow$12B ..... $\rightarrow$ 45 ..... $\rightarrow$ 15 A) Country A has an absolute and comparativeadvantage in the production of computers. B) Country B has an absolute and comparativeadvantage in the production of computers. C) Country B should import computers andexport cars. D) Since Country B has an absolute advantagein the production of both goods, it will nottrade with Country A. E) Neither country can benefit from trade. Show Answer Correct Answer: B) Country B has an absolute and comparativeadvantage in the production of computers. 19. If nations limit trade of clothing who will benefit? A) Foreign Producers of clothing. B) Domestic producers of clothing. C) Domestic Consumers of clothing. D) Department stores who sell clothing. Show Answer Correct Answer: B) Domestic producers of clothing. 20. When did Vietnam join WTO? A) 1 January 2008. B) 11 January 2007. C) 11 January 2008. D) 1 January 2007. Show Answer Correct Answer: B) 11 January 2007. 21. A person or organization that brings goods or services into a country from abroad for sale. A) Customer. B) Exporter. C) Importer. D) Partner. Show Answer Correct Answer: C) Importer. 22. Exports cause money to ..... A) Leave Ireland. B) Enter Ireland. Show Answer Correct Answer: B) Enter Ireland. 23. The price of one nation's currency relative to another's A) Exchange rate. B) Absolute advantage. C) Comparative advantage. D) Currency theory. Show Answer Correct Answer: A) Exchange rate. 24. Gross National Product (GNP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. A) True. B) False. Show Answer Correct Answer: B) False. 25. Maxicopolis can produce 100 bushels of wheat or 100 yards of cloth. Minicopolis can produce 100 bushels of wheat or 300 yards of cloth. Which city has a comparative advantage in the production of cloth? A) Maxicopolis, because they can produce more wheat and more cloth. B) Minicopolis, because they can produce more wheat and more cloth. C) Minicopolis, they give up 1/3 bushel of wheat each time they make a yard of cloth. That means it's less expensive (in terms of wheat) for them to make cloth than it is for Maxicopolis. D) Maxicopolis, they give up 1 bushel of wheat each time they make a yard of cloth. That means its less expensive (in terms of wheat) for them to make cloth than it is for Minicopolis to make cloth. Show Answer Correct Answer: C) Minicopolis, they give up 1/3 bushel of wheat each time they make a yard of cloth. That means it's less expensive (in terms of wheat) for them to make cloth than it is for Maxicopolis. 26. This is an extremely useful tool for thinking about the reasons why trade may happen and about the effects of international trade on national welfare. A) Comparative Advantage Model. B) Absolute Advantage Model. C) International Trade Model. D) Ricardian Model. Show Answer Correct Answer: D) Ricardian Model. 27. In 2012 the UK held the Olympic Games which attracted a large number of visitors from foreign countries. Which item of the UK's current account balance will have benefitted directly from this event? A export trade in goods B export trade in services C import trade in goods D import trade in services A) B. B) C. C) A. D) D. Show Answer Correct Answer: A) B. 28. ..... keeps only samples in the shop A) Company. B) Retailer. C) Wholesaler. D) All of the above. Show Answer Correct Answer: C) Wholesaler. 29. The trade deficit with China has been decreasing in recent years as their economy grows, providing the citizens with more disposable income with which to purchase imported items coming from the U.S. A) True. B) False. Show Answer Correct Answer: A) True. 30. The opportunity for Indonesian products to penetrate the international market is very large because it is supported by..... A) Wealth of natural resources, human resources, and abundant culture. B) The region's strategic location as the main route for international trade. C) There is progress in the fields of science and technology. D) The ability to carry out production efficiency so that it has high competitiveness. Show Answer Correct Answer: A) Wealth of natural resources, human resources, and abundant culture. ← 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