This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 43 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 43 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following are NOT true about the EU? A) Member nations of the EU have a common currency. B) The largest number of countries in an economic alliance in the world. C) A political, economic, and social alliance between the member nations. D) All European nations are part of the EU. Show Answer Correct Answer: D) All European nations are part of the EU. 2. When must you ask for a Multimodal Bill of Lading FBL? A) When the goods are imported from Asia. B) When using more than one mode of Transport. C) When you ship in secret mode. D) When shipping expensive goods. Show Answer Correct Answer: B) When using more than one mode of Transport. 3. If two nations specialize according to the law ofcomparative advantage and then trade with eachother, which of the following would be true? A) A smaller number of goods would be avail-able in each trading nation. B) Total world production of goods woulddecrease. C) Everyone within each nation would bebetter off. D) Each nation would increase its consumptionpossibilities. E) One nation would gain at the expense of theother nation. Show Answer Correct Answer: D) Each nation would increase its consumptionpossibilities. 4. The only supplier who is able to fulfill the requirements for the fulfillment of an item is called..... A) Dedicated supplier. B) Multisourcing. C) Sole source supplier. D) Cross sourcing. Show Answer Correct Answer: C) Sole source supplier. 5. The increase in skills and abilities as a result of education and training is referred to as A) Economic Growth. B) Technological competency. C) Human resource development. D) Economic development. Show Answer Correct Answer: C) Human resource development. 6. The tariff that functions as a ceiling that cannot be violated and is recorded in the schedule of concessions for each member is called: A) Qualitative tariff. B) Bound tariff. C) Applied tariff. D) All wrong. Show Answer Correct Answer: B) Bound tariff. 7. An advantage of international trade:By trading internationally, not only do a country's consumers enjoy a larger variety of goods and services, but increased competition resulting from international trade can lead to lower prices and more product innovation so people's standards of living are raised by having more choicer and better quality and cheaper products. A) Yes, I understand this from the notes. B) No, I don't understand this from the notes. C) No, I don't understand this, as I have not read the notes. D) None of above. Show Answer Correct Answer: A) Yes, I understand this from the notes. 8. The point at which the production possibility frontier intersects the x-axis represents the A) Opportunity cost of consuming instead of saving. B) Elasticity of demand for the good labeled on the x-axis. C) Amount of a good an individual can make if they devote their entire time to producing that good. D) Optimal location for a utility-maximizing consumer. E) Consumption bundle that can only be achieved through trade. Show Answer Correct Answer: C) Amount of a good an individual can make if they devote their entire time to producing that good. 9. A document issued by a government authorizing the importation of certain goods into the country A) Manifest. B) Import Licence. C) Export Licence. D) Letters of Credit. Show Answer Correct Answer: B) Import Licence. 10. What BEST protects a firm from being forced to sell its products at an unfairly low price? A) Many other suppliers. B) Many possible consumers. C) A weak government. D) A strong government. Show Answer Correct Answer: B) Many possible consumers. 11. One of the few sectors in which trade increased during Covid is A) Textile. B) Rubber/Plastics. C) Communication Equipment. D) Food Products. Show Answer Correct Answer: A) Textile. 12. International organization overseeing world trade; ensures world trade occurs in a smooth and free-flowing manner with little disruption A) Domestic Trade. B) World Trade Organization. C) Export. D) World Trade. Show Answer Correct Answer: B) World Trade Organization. 13. Methods of protectionismTax on imported goods, sometimes referred to as customs duties A) VER. B) Embargoes. C) Non-competitive purchasing by governments. D) Quotas. E) Tariffs. Show Answer Correct Answer: E) Tariffs. 14. Adam Smith (The Wealth of Nations 1776) believed that international trading would benefit all countries involved (positive-sum/net benefit outcomes) A) True. B) False. Show Answer Correct Answer: A) True. 15. What is the primary purpose of the World Trade Organization? A) Keep peace in the world. B) Foster global growth and economic stability. C) Help reduce poverty. D) Regulating trade/ to sort out trade problems. Show Answer Correct Answer: D) Regulating trade/ to sort out trade problems. 16. Which of the following is the economic argument against free trade? A) Consumer protection. B) National security. C) The necessity to shield infant industries. D) Environmental and social responsibility. Show Answer Correct Answer: C) The necessity to shield infant industries. 17. Countries around the world specialize production, and trade with other countries based upon A) Amount of capital available to produce with. B) Comparative advantage in production. Show Answer Correct Answer: B) Comparative advantage in production. 18. Which of the following is an example of a non-tariff barrier? A) Import quotas. B) Customs duties. C) Export subsidies. D) Trade agreements. Show Answer Correct Answer: A) Import quotas. 19. A limit on the quantity of a good that can be imported during a specific period of time; a type of trade barrier. A) Trade Embargo. B) Protective Tariff. C) Import Quota. D) VER. Show Answer Correct Answer: C) Import Quota. 20. The theory of 'absolute advantage': A) Best describes a situation where there are two countries, A and B, and potentially two goods which can be traded, X and Y. A is absolutely better at producing X and B is absolutely better at producing Y, and so if A specializes in producing X and B in Y, and they trade together, then both countries will gain. B) Best describes the global strategy of businesses who always seek to gain an absolute advantage over their rivals. C) Explains why developed countries have a competitive advantage over poorer countries. D) Best describes a situation where there are two countries, A and B, and potentially two goods which can be traded, X and Y. If A was absolutely better at producing both X and Y compared to B then there would be no advantage in A trading with B. Show Answer Correct Answer: A) Best describes a situation where there are two countries, A and B, and potentially two goods which can be traded, X and Y. A is absolutely better at producing X and B is absolutely better at producing Y, and so if A specializes in producing X and B in Y, and they trade together, then both countries will gain. 21. Which of the following is not considered as factors of production? A) Land. B) Labour. C) Money. D) Capital. Show Answer Correct Answer: C) Money. 22. The insured is..... A) A person authorized to enter into a contract for the benefit of the insurer and the insured in accordance with the mandate granted by the insurer. B) A person authorized to protect the legal interests of the insurer and enter into contracts on his behalf. C) A citizen or legal entity who insures the insured item for his own benefit and concludes an insurance contract. D) A company licensed to engage in insurance activities. Show Answer Correct Answer: C) A citizen or legal entity who insures the insured item for his own benefit and concludes an insurance contract. 23. Which of the following facilitates the exchange of money between savers and borrowers? A) Loans. B) Deposits and Withdraws. C) Financial Institutions. D) Interest Fees. Show Answer Correct Answer: C) Financial Institutions. 24. Which of the following is the best synonym for infant in the economic term infant industries argument? A) Traditional. B) Youthful. C) Dependent. D) Emerging. Show Answer Correct Answer: D) Emerging. 25. An association of 12 member nations of southeast Asia to promote economic growth, free trade and economic collaboration between member nations. A) ASEAN. B) EU. C) NAFTA. D) None of above. Show Answer Correct Answer: A) ASEAN. 26. An agreement between two or more companies to share a business project-this business is on a limited basis for control A) Infrastructure. B) Licensing. C) Joint venture. D) Franchising. Show Answer Correct Answer: C) Joint venture. 27. What does NAFTA stand for? A) National Agency for Trade Adherence. B) Negotiations Among Foreign Trade Authorities. C) North American Free Trade Agreement. D) Nominally Advised Feasible Trade Attribution. Show Answer Correct Answer: C) North American Free Trade Agreement. 28. What is globalization? A) The increased flow of trade, people, technology, and culture among countries. B) The decreased flow of trade, people, technology, and culture among countries. C) The creation of one global empire and government under a single super power. D) The creation of a global cellular network to use phones internationally. Show Answer Correct Answer: A) The increased flow of trade, people, technology, and culture among countries. 29. Which one is the characteristic of wholesale trade? A) Large capital. B) Sells to other business people. C) All the above. D) None of the above. Show Answer Correct Answer: C) All the above. 30. The BSP defines Direct Remittance as a mode of payment wherein payment is made within how many calendar days from transport document date? A) 30. B) 21. C) 25. D) 29. Show Answer Correct Answer: D) 29. ← 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