This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 44 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 44 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the definition of protectionism? A) Government actions to influence international trade. B) National economic policies that restrict free trade. C) Direct and indirect subsidies provided by governments. D) Restrictions on imports and exports. Show Answer Correct Answer: B) National economic policies that restrict free trade. 2. What do you call the exchange of products and services across national borders? A) INTERNATIONAL MONETARY FUND. B) GROSS DOMESTIC PRODUCT. C) INTERNATIONAL TRADE SYSTEM. D) INTERNATIONAL TRADE BUSINESS. Show Answer Correct Answer: C) INTERNATIONAL TRADE SYSTEM. 3. ..... is the transfer of ownership, property or business from the government to the private sector. A) Privatization. B) Free trade. C) Protectionist policy. D) Trade surplus. Show Answer Correct Answer: A) Privatization. 4. What best defines trading blocs? A) Agreement between different governments around the world. B) Import and Export between countries. C) Persuasion of trade between countries by the removal of trade barriers. D) Two countries coming together as one. Show Answer Correct Answer: C) Persuasion of trade between countries by the removal of trade barriers. 5. What is an import quota? A) A tax placed on the export of a good. B) A restriction on the quantity of a good that may be imported. C) A hybrid of a quota and a tariff. D) A quota on trade imposed by the exporting country. Show Answer Correct Answer: B) A restriction on the quantity of a good that may be imported. 6. The country similarity theory suggests that most trade in manufactured goods should be between countries with similar ..... A) Labor costs. B) Per capita incomes. C) Natural resources. D) Cultures and languages. Show Answer Correct Answer: B) Per capita incomes. 7. Protective tariffs are applied to goods that do have a domestic competitor and are designed to make the imported goods cost at least as much as, or more than, the domestic good, so these tariffs can be quite high. A) False. B) True. Show Answer Correct Answer: B) True. 8. We import some of the same products we export. Which is the most correct answer? A) Clothing. B) Bananas. C) Coffee beans. D) None of above. Show Answer Correct Answer: A) Clothing. 9. Comparative Advantage is inability of a nation to produce a good more efficiently than other nations, but ability to produce that good more efficiently than it does any other good A) True. B) False. Show Answer Correct Answer: A) True. 10. What is meant by international trade? A) Trade between individuals within the same country. B) Trade between two neighboring countries. C) Trade in goods between local businesses. D) Trade between two different countries. Show Answer Correct Answer: D) Trade between two different countries. 11. Consumers in an importing country would benefit from the imposition of a tariff. A) True. B) False. Show Answer Correct Answer: B) False. 12. Which of the following is a benefit of international trade? A) Increased prices of goods. B) Limited consumer choices. C) Reduced economic growth. D) Access to a wider variety of products. Show Answer Correct Answer: D) Access to a wider variety of products. 13. An organization has various forms of responsibility towards all stakeholders including consumers, employees, shareholders and communities in all aspects of company operations including aspects..... A) Economic, social and environmental. B) Business, audit and work program. C) Policies, decisions and strategies. D) Perception, values and planning. Show Answer Correct Answer: A) Economic, social and environmental. 14. Comparative advantage explains why a nation will benefit from trade when: A) It exports goods for which it is a low-opportunity cost producer, while importing those for which it is a high-opportunity cost producer. B) It exports more than it imports. C) It exports goods for which it is a high-opportunity cost producer, while importing those for which it is a low-opportunity cost producer. D) Its trading partners are experiencing offsetting losses. Show Answer Correct Answer: A) It exports goods for which it is a low-opportunity cost producer, while importing those for which it is a high-opportunity cost producer. 15. It refers to an economy's ability to produce goods and services at a lower opportunity cost than its trade partners than other producers. A) Competitive advantage. B) Firm strategy. C) Factor endowments. D) Comparative advantage. Show Answer Correct Answer: D) Comparative advantage. 16. An international trade agreement among the United States, Canada, and Mexico. A) North American Free Trade Agreement (NAFTA). B) Customization. C) Foreign direct investment (FDI). D) World Trade Organization (WTO). Show Answer Correct Answer: A) North American Free Trade Agreement (NAFTA). 17. What country imports more than any other country in the world? A) Russia. B) Mexico. C) Japan. D) United States. Show Answer Correct Answer: D) United States. 18. If you sell goods abroad then you are called..... A) Impor. B) Export. C) Exporter. D) Transfer. Show Answer Correct Answer: C) Exporter. 19. Insurance is..... A) The value of the object of insurance and expressed in monetary terms. B) Insured property, life and health of citizens, and non-material interests that are not against the law. C) Actions aimed at transferring or mitigating any future risks. D) A legal document regulating the insurance relationship between the insurer and the insured. Show Answer Correct Answer: C) Actions aimed at transferring or mitigating any future risks. 20. GATT was made in the year A) 1951. B) 1945. C) 1947. D) 1950. Show Answer Correct Answer: C) 1947. 21. Trade creation and trade diversion may result from the creation of a trading bloc. Trade creation refers to the idea that ..... while trade diversion means that ..... A) Lower cost producers are replaced by higher cost producers / higher cost producers are replaced by lower cost producers. B) Higher cost producers are replaced by lower cost producers / lower cost producers are replaced by higher cost producers. C) Trade expands through more exports and imports / trade contracts through fewer exports and imports. D) Imports from efficient producers are replaced by imports from inefficient producers / imports from inefficient producers are replaced by imports from efficient producers. Show Answer Correct Answer: B) Higher cost producers are replaced by lower cost producers / lower cost producers are replaced by higher cost producers. 22. Trade carried out by two countries to meet each other's needs is called..... A) Bilateral trade. B) International trade. C) Multilateral trade. D) Regional trade. Show Answer Correct Answer: A) Bilateral trade. 23. What is the emotional argument for government intervention in international trade? A) To prevent unemployment. B) To preserve cultural identity. C) To further foreign policy goals. D) To protect domestic industries. Show Answer Correct Answer: B) To preserve cultural identity. 24. We have a ..... amount of food we don't need. A) Surplus. B) Export. C) Percent. D) Steel mill. Show Answer Correct Answer: A) Surplus. 25. Which of these can be barriers to international Trade? A) No of staff a company has. B) Advertising and Branding. C) Economic sanctions, trade restrictions, legal and regulatory systems. D) Trading with the USA. Show Answer Correct Answer: C) Economic sanctions, trade restrictions, legal and regulatory systems. 26. In the Ricardian model, we can show that trade enlarges a country's consumption possibilities, which implies ..... A) Strength of trade. B) Gain from trade. C) Weakness of trade. D) Loss from trade. Show Answer Correct Answer: B) Gain from trade. 27. Which of the following statements best describes trade between two nations? A) It is mutually beneficial. B) It is legally required. C) It avoids specialization. D) It involves low cost for both nations. Show Answer Correct Answer: A) It is mutually beneficial. 28. If the world price of steel is lower than the domestic price in the U.S. will our country be an importer or exporter of steel when trade is permitted? A) Exporter. B) Importer. Show Answer Correct Answer: B) Importer. 29. This document is a guarantee that payment will be made when the seller meets the conditions sale. A) LETTER OF CREDIT. B) LETTER OF INSURANCE. C) LETTER OF SALES CONDITION. D) None of above. Show Answer Correct Answer: A) LETTER OF CREDIT. 30. Quantitative tax concerned with the amount of goods rather than the value of the goods A) Income. B) Specific Tariff. C) Sales. D) To value. Show Answer Correct Answer: B) Specific Tariff. ← 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