This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 50 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 50 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Discuss the advantages and disadvantages of tariffs. A) Tariffs have no impact on domestic industries. B) Tariffs do not generate any revenue for the government. C) Advantages of tariffs include protecting domestic industries, generating revenue for the government, and reducing trade deficits. Disadvantages include higher prices for consumers, retaliation from other countries, and potential trade wars. D) Tariffs do not affect trade deficits. Show Answer Correct Answer: C) Advantages of tariffs include protecting domestic industries, generating revenue for the government, and reducing trade deficits. Disadvantages include higher prices for consumers, retaliation from other countries, and potential trade wars. 2. The certificate or origin helps to A) Identify the origin of a person. B) Know where exactly the products come from. C) Export and import products. D) All of the above. Show Answer Correct Answer: B) Know where exactly the products come from. 3. What percentage of total U.S. exports is accounted for by intrafirm exports? A) 40%. B) 20%. C) 10%. D) 30%. Show Answer Correct Answer: D) 30%. 4. Under the fixed exchange rate, the value of a country's currency is determined by the A) Amount of its gold reserves. B) Federal Reserve System. C) Forces of supply and demand. D) World Trade Organization. Show Answer Correct Answer: A) Amount of its gold reserves. 5. Which of the following is a supranational trade organization? A) International Monetary Fund (IMF). B) United Nations (UN). C) World Trade Organization (WTO). D) European Union (EU). Show Answer Correct Answer: D) European Union (EU). 6. What is a trade block? A) A group of countries that agree to trade more easily with each other. B) A restriction put in place by the government. C) A group of businesses that operate in multiple countries. D) A tax imposed on goods and services. Show Answer Correct Answer: A) A group of countries that agree to trade more easily with each other. 7. A visible Export is ..... A) A service that has been brought in from another country. B) A service that has been sold to another country. C) A physical good that has been brought in from another country. D) A physical good that has been sold to another country. Show Answer Correct Answer: D) A physical good that has been sold to another country. 8. In part, a country's currency account measures A) Its current debt as as opposed to its long term debt. B) Receipts from the sale of goods services to foreigners and payments for goods and services bought from foreigners. C) Net increases and decreases in a country's holdings of foreign currency. D) Borrowing and lending activity between the country's residents and foreigners. Show Answer Correct Answer: B) Receipts from the sale of goods services to foreigners and payments for goods and services bought from foreigners. 9. What is the meaning of international trade? A) The movement of goods and services between different countries. B) The exchange of ideas and cultural practices between nations. C) The establishment of diplomatic relations among countries. D) The formation of international agreements for military alliances. Show Answer Correct Answer: A) The movement of goods and services between different countries. 10. What is it called when a company focuses on producing one type of good or service? A) Underutilization. B) GDP per capita. C) Productivity. D) Specialization. Show Answer Correct Answer: D) Specialization. 11. What year was the NAFT (National American Free Trade) Agreement signed? A) 1990. B) 1998. C) 1993. D) 1994. Show Answer Correct Answer: D) 1994. 12. What is the trade-weighted value of the dollar? A) A measure of the value of the dollar in relation to the balance of trade. B) A measure of the international value of the dollar. C) A measure of the value of the dollar in relation to gold. D) A measure of the value of the dollar compared to other currencies. Show Answer Correct Answer: B) A measure of the international value of the dollar. 13. ..... ? ..... Traveling abroad is cheaper. Imports are cheaper.Luxury cars from Europe, such as Audi, Mercedes, BMW, Porsche, and Ferrari will all fall in dollar price. A) Strong dollar. B) Weak dollar. Show Answer Correct Answer: A) Strong dollar. 14. Pay attention to the following characteristics of trade:(1) Buyers and sellers do not meet in person(2) Import duties are imposed(3) Different currencies(4) Buyers and sellers tend to meet(5) Cheaper transportation costsWhich is a characteristic of trade international is..... A) , (2), and (3). B) , (3), and (4). C) , (3), and (5). D) , (4), and (5). Show Answer Correct Answer: A) , (2), and (3). 15. Molly is traveling from France to the US. She knows that 1 US dollar is worth 0.80 Euros. How much is 350 Euros worth in US dollars? A) $ 375. B) $ 425. C) $ 437.50. D) $ 280. Show Answer Correct Answer: C) $ 437.50. 16. A contract is an agreement between two or more people, seller or buyer. Contracts have some clauses. Select the option that contains some of those clauses of the contract. A) Insurance, Description, Quality, Force Majeure. B) Quantity, Arbitration, Payment, Delivery. C) Packing, Price, Warranty or Guarantee, Claim. D) All of the above. Show Answer Correct Answer: D) All of the above. 17. You offer to pay for a meal. What do you say? A) It's on me. B) Congratulations!!. C) Cheers!!. D) Help yourself. Show Answer Correct Answer: A) It's on me. 18. International trade is the exchange of goods and services between countries. This includes both ..... and ..... and via any mode of transportation-air and ocean freight. A) Domestic, International Trade. B) Import, Export. C) Tariffs, Quotas. D) A single nation, Multiple nations. Show Answer Correct Answer: B) Import, Export. 19. Good brought into the country A) Absolute advantage. B) Imports. C) Exports. D) Comparative advantage. Show Answer Correct Answer: B) Imports. 20. An embargo is..... A) A law that cuts off trade with another country with the intent of hurting it. B) Trade that has no limits on it. C) A limit put on the number of goods from one country that are brought into another. D) Taxes on goods brought into a country. Show Answer Correct Answer: D) Taxes on goods brought into a country. 21. The Trade Facilitation Agreement will ..... A) Reduce red tape and compliance costs for exporters (such as customs procedures), potentially boosting global trade by up to $ 1 trillion a year. B) Stimulate innovation, including by enabling the commercialisation of research, supporting start-ups, and helping existing businesses to build capability and skills. C) Help Australians to develop skills to find jobs and opportunity in changing workplaces. D) None of above. Show Answer Correct Answer: A) Reduce red tape and compliance costs for exporters (such as customs procedures), potentially boosting global trade by up to $ 1 trillion a year. 22. Trade between countries without restrictions or trade barriers A) Trade Agreement. B) International Trade. C) Trade Agreement. D) Free Trade. Show Answer Correct Answer: D) Free Trade. 23. The effect of the Fed selling bonds A) Increases money supply. B) Decreases money supply. Show Answer Correct Answer: B) Decreases money supply. 24. Expectation for minimal levels of quality to be met. A) Embargo. B) Tariff. C) Standards. D) Quotas. Show Answer Correct Answer: C) Standards. 25. With a given amount of resources, a country with a comparative advantage will produce a product with ..... A) Decreased demand. B) Lower opportunity costs. C) Cheaper natural resources. D) Higher quality specifications. Show Answer Correct Answer: B) Lower opportunity costs. 26. The establishment of a business in a foreign country. A) Infrastructure. B) International trade. C) Foreign direct investment (FDI). D) Balance of trade. Show Answer Correct Answer: C) Foreign direct investment (FDI). 27. The FOREX is about ..... A) Trading products. B) Trading currency. C) Trading services. D) Trading Good and Services. Show Answer Correct Answer: B) Trading currency. 28. Because Nebraska specializes in the production of corn and Maine specializes in the production of lobsters, the two states could engage in trade that benefits both parties. This law of economics is known as which of the following? A) Parallel consumption. B) Relative distribution. C) Comparative advantage. D) Supply and demand. Show Answer Correct Answer: C) Comparative advantage. 29. This approach is based on the argument that more trade makes us wealthier and is therefore a good thing. It is known as ..... A) Oligopoly. B) Free Market. C) Free Trade. D) Protectionist Rules. Show Answer Correct Answer: C) Free Trade. 30. The exchange of goods and services between countries is know as? A) Commerce. B) International trade. C) Export. D) Domestic trade. Show Answer Correct Answer: B) International trade. ← 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