This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 52 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 52 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following issues is the center of an anti-globalization argument? A) Globalization and the environment. B) Globalization and Economic. C) Environment and science. D) Globalization and Social relations. Show Answer Correct Answer: A) Globalization and the environment. 2. The United States imports oil from Saudi Arabia. Japan exports cars to the United States. The United States sells high technology to Saudi Arabia. Which of the following is a valid conclusion that can be drawn from these statements? A) Most nations of the world specialize in one export. B) The nations of the world are economically interdependent. C) The U.S. is the world's leading exporter. D) Saudi Arabia controls most of the world's natural resources. Show Answer Correct Answer: B) The nations of the world are economically interdependent. 3. Who introduced the concept of comparative advantage in the early 19th century? A) Frederick Engels. B) David Ricardo. C) Thomas Malthus. D) Adam Smith. Show Answer Correct Answer: B) David Ricardo. 4. The dollar weakens. A) Appreciate. B) Depreciate. Show Answer Correct Answer: B) Depreciate. 5. An important international trade document that certifies that goods in a particular export shipment are wholly obtained, produced, manufactured or processed in a particular country: A) C&H. B) Certificate of origin. C) Bill of lading. D) CIF. Show Answer Correct Answer: B) Certificate of origin. 6. It is a statement that keeps track of all economic transactions done by the country with the remaining world. A) External Transaction. B) Balance of Trade. C) Balance of Payment. D) Positive Balance. Show Answer Correct Answer: C) Balance of Payment. 7. This agent helps importers and exporters move their goods through customs.Customs brokers prepare documents, assist with communications, and arrange payment of duties. A) TAXES BROKER. B) FREIGHT BROKER. C) CUSTOMS BROKER. D) None of above. Show Answer Correct Answer: C) CUSTOMS BROKER. 8. William is studying the foreign exchange market and notices that a particular currency is appreciating in value. What does this mean for that currency in the foreign exchange market? A) It has no impact on the foreign exchange market. B) It becomes less expensive in the foreign exchange market. C) It leads to inflation in the domestic economy. D) It becomes more expensive in the foreign exchange market. Show Answer Correct Answer: D) It becomes more expensive in the foreign exchange market. 9. T or F:The global supply and demand will ensure productivity A) False. B) True. Show Answer Correct Answer: B) True. 10. What year ended the Bretton Wood System? A) 1971. B) 1972. C) 1969. D) 1970. Show Answer Correct Answer: A) 1971. 11. Trade between two countries can be useful if cost ratios of goods are Equal A) True. B) False. Show Answer Correct Answer: B) False. 12. In order to get a full ....., customers must send back goods in the original packaging. A) Discount. B) Refund. C) Voucher. D) Return. Show Answer Correct Answer: B) Refund. 13. There are ..... stage(s) involves in the product cycle model A) 5. B) 2. C) 3. D) 1. E) 4. Show Answer Correct Answer: A) 5. 14. Although businesses actually trade with one another, it is the countries' ..... that negotiate trade agreements. A) Stockholders. B) Governments. C) Public. D) Presidents. Show Answer Correct Answer: B) Governments. 15. The Endogenous Growth Theory was a response to what? A) Criticism of the neoclassical growth models. B) Criticism of the subsidiary industry. C) Criticism to competition in both commodity and factor markets. D) Criticism to the less emphasis on the factor-proportion theory of comparative advantage. Show Answer Correct Answer: A) Criticism of the neoclassical growth models. 16. When one country has an absolute advantage in producing a product, then that country can typically benefit by ..... that product. A) Exporting. B) Importing. C) Hording it for themselves. D) None of above. Show Answer Correct Answer: A) Exporting. 17. Why is it crucial to take into account transportation costs when evaluating the overall cost of something? A) Because obtaining perfect information about prices, costs, and productivity of all goods and services in large global markets is almost impossible. B) Because technology remains constant and does not improve. C) Because the cost of shipping a product can sometimes be so high that it cancels out any advantage it may have had. D) Because not all resources in a country are suited for producing a single good. Show Answer Correct Answer: C) Because the cost of shipping a product can sometimes be so high that it cancels out any advantage it may have had. 18. Trade is a basic economic concept involving the buyingand selling of goods and services, with compensation paid by a seller to a buyer, or the exchange of goods orservices between parties. A) FALSE. B) TRUE. Show Answer Correct Answer: A) FALSE. 19. How much of the GDP, all the final goods and serves, is available for each person in a country. Used to determine a country's standard of living. A) Limited Trade. B) GDP per capita. C) GDP. D) Import. Show Answer Correct Answer: B) GDP per capita. 20. What is the main argument a government of a small country might use in times of a worsening worldwide recession to justify an increase in import tariffs and other trade protectionist policies? A to protect the country from a rise in domestic unemployment B to protect the country's terms of trade C to protect the domestic economy from increasing prices D to protect the domestic economy from the import of poor quality goods A) B. B) C. C) D. D) A. Show Answer Correct Answer: D) A. 21. What are the disadvantages of international trade? A) Higher transportation costs, cultural barriers, and trade imbalances. B) Increased competition, loss of domestic jobs, and dependency on foreign countries for essential goods. Show Answer Correct Answer: B) Increased competition, loss of domestic jobs, and dependency on foreign countries for essential goods. 22. Which of the following theories suggests that first mover advantage is significant in the export of a good? A) Theory of comparative advantage. B) Product life-cycle theory. C) New trade theory. D) Ricardo's theory. Show Answer Correct Answer: C) New trade theory. 23. Consider Peru and Argentina in a Ricardian world. Each country produces two goods, Corn and Wheat. Each country has 600 units of labor hour available. The table of unit labor costs for production of each good in each country is:If world relative price for wheat is 3.5, then A) The world relative quantity of wheat supplied is 1/2. B) Relative quantity of wheat supplied is 6. C) The world relative quantity of wheat supplied is 1/6. D) The world relative quantity cannot be determined from the information given. Show Answer Correct Answer: C) The world relative quantity of wheat supplied is 1/6. 24. What is a quota in international trade? A) A government grant to encourage production. B) An administrative and technical barrier. C) A limit on the quantity of imports. D) A tax on imports. Show Answer Correct Answer: B) An administrative and technical barrier. 25. Which of the sentences is true A) Open account is not one of the 4 methods in international Trade (True). B) Open account is one of the methods in international trade (True). C) Open account is difficult to handle to an importer (True). D) 1 & 2 (True). E) All the above are True. Show Answer Correct Answer: B) Open account is one of the methods in international trade (True). 26. The higher the firm's profit per unit sold is, the greater its profitability will be, all else being equal. A) False. B) True. Show Answer Correct Answer: B) True. 27. Which agency regulates the money supply in India? A) The Government of India. B) Commercial banks. C) Reserve Bank of India. D) None of the above. Show Answer Correct Answer: C) Reserve Bank of India. 28. When the dollar "rises" compared to other currencies, which group benefits the most? A) Those who export products overseas. B) Those who have large cash savings on hand. C) Those who import products from overseas. D) Those who apply for loans. Show Answer Correct Answer: C) Those who import products from overseas. 29. Promote competitive and sustainable local automotive industry A) SME Bank. B) WIPO. C) MAY. D) UNCTAD. Show Answer Correct Answer: C) MAY. 30. 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 wheat? 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 of a yard of cloth each time they make a bushel of wheat. That means it's less expensive (in terms of cloth) for them to make wheat than it is for Maxicopolis to make wheat. D) Maxicopolis, they give 3 yards of cloth each time they make a bushel of wheat. That means its less expensive (in terms of cloth) for them to make wheat than it is for Minicopolis to make wheat. Show Answer Correct Answer: C) Minicopolis, they give up 1/3 of a yard of cloth each time they make a bushel of wheat. That means it's less expensive (in terms of cloth) for them to make wheat than it is for Maxicopolis to make wheat. ← 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