This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 53 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 53 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. International trade is NOT a key component in most nations' economies. A) False. B) True. Show Answer Correct Answer: A) False. 2. Tax placed on imports to increase their price in the domestic market A) Protectionist. B) Balance of payments. C) Free trade. D) Tariff. Show Answer Correct Answer: D) Tariff. 3. Supposed that, R:Rice ; S:SteelWe have five nations, two goods and their relative price as below:In India, PR/PS = 0, 2In Vietnam, PR/PS = 0, 25In Thailand, PR/PS = 0, 3In Russia, PR/PS = 0, 5In Japan, PR/PS = 0, 6If the equilibrium PR/PS = 0, 5. What nations will export rice? A) All of them will export. B) Vietnam, Thailand, Russia. C) Thailand, Russia, Japan. D) India, Vietnam, Thailand. Show Answer Correct Answer: D) India, Vietnam, Thailand. 4. Strategy that limits international trade in order to protect domestic firms A) Free Trade. B) Balance of Trade. C) Protectionism. D) Trade Blocks. Show Answer Correct Answer: C) Protectionism. 5. They are stages in the economic integration process A) Preferential Trade Area, Free Trade Area, Common Market. B) Customs Union, . Monetary Union, Fiscal Union. C) None of the above. D) All of the above. Show Answer Correct Answer: D) All of the above. 6. Karl Marx published which of the following books? A) The capital. B) General Theory of Communism. C) Capitalist Manifesto. D) Wealth of Nations. Show Answer Correct Answer: A) The capital. 7. What is a tariff in international trade? A) A subsidy to foreign producers. B) A tax on domestic goods. C) A tax on imported goods. D) A restriction on trade. Show Answer Correct Answer: C) A tax on imported goods. 8. To make sure that your employer can pay the compensation, they must take out an insurance ..... A) Line. B) Claim. C) Card. D) Policy. Show Answer Correct Answer: D) Policy. 9. She was shocked when we ..... that the company would be closing. A) Told. B) Announced. Show Answer Correct Answer: B) Announced. 10. The dollar strengthens. A) Depreciate. B) Appreciate. Show Answer Correct Answer: B) Appreciate. 11. Suppose you are the director of the overseas purchasing department of Langlangshan Company and you purchase a batch of potatoes from abroad in the name of your company. Is this behavior considered international trade? A) Yes. B) No. Show Answer Correct Answer: A) Yes. 12. The combination of a supermarket and a discount store is greater than a superstore i.e..... A) Department Store. B) Warehouse Showroom. C) Hypermarket. D) Warehouse Club. Show Answer Correct Answer: C) Hypermarket. 13. Protectionism is similar to mercantilism as they both advocated ..... A) Dividing the nations of the world into three categories based on its innovation capabilities. B) Developing comparative advantages based on a nation's locally abundant factors. C) Specializing in economic activities in which a nation can have an absolute advantage. D) Government involvement in international trade. Show Answer Correct Answer: D) Government involvement in international trade. 14. A nation can have an absolute advantage without having a comparative advantage in production. A) False. B) True. Show Answer Correct Answer: B) True. 15. All are the basic risks in international trade and investment, except A) Project. B) Commercial. C) Financial. D) Currency. E) Political. Show Answer Correct Answer: A) Project. 16. How do exchange rates affect international trade? A) They have no impact on international trade. B) They can impact the price competitiveness of goods and services. C) They only affect countries with strong economies. D) They promote protectionist trade policies. Show Answer Correct Answer: B) They can impact the price competitiveness of goods and services. 17. A Chinese man goes to Singapore to cure cancer with this country's private health care service. This is an example of ..... A) Mode I:Cross-border supply. B) Mode IV:Natural persons presence. C) Mode II:Consumption abroad. D) Mode III:Commercial presence. Show Answer Correct Answer: C) Mode II:Consumption abroad. 18. What is one main difference between PTAs and FTAs? A) PTAs are only multilateral. B) PTAs apply only to services. C) FTAs cannot be unilateral. D) None of above. Show Answer Correct Answer: C) FTAs cannot be unilateral. 19. Which one of the following is a characteristic of globalisation A) Low levels of labour migration. B) The development of global brands. C) A decrease in foreign direct investment. D) A reduction in out-sourcing and off-shoring of production. Show Answer Correct Answer: B) The development of global brands. 20. Tariffs, quotas, and embargos are examples of: A) Physical barriers. B) Cultural barriers. C) Political barriers. D) None of above. Show Answer Correct Answer: C) Political barriers. 21. A country will become an exporter of a good if A) There are enough producers of that good. B) The world market price is above the domestic price. C) The government imposes export quotas. D) The world market price is below the domestic price. Show Answer Correct Answer: B) The world market price is above the domestic price. 22. In which of the following categories are there transactions of balance of trade recorded? A) Visible items. B) Invisible items. C) Capital transfers. D) All of these. Show Answer Correct Answer: A) Visible items. 23. What would be one consequence of a prolonged decline in the value of the euro relative to the U.S. dollar? A) U.S. exports to Europe would become cheaper. B) European exports to the United States would become less expensive. C) European imports from the United States would increase. D) U.S. imports from Europe would become more expensive.U.S. imports from Europe would become more expensive. Show Answer Correct Answer: B) European exports to the United States would become less expensive. 24. Nations trade to have an efficient production of goods and services which requires combination of the right resources and technologies. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 25. The NT principle is..... A) The principle of non-discrimination which provides equal treatment between countries. B) The principle of non-discrimination which provides equal treatment to fellow imported products. C) The principle of non-discrimination which provides equal treatment between imported products and local/domestic products. D) The principle of non-discrimination which provides equal treatment to fellow export products. Show Answer Correct Answer: C) The principle of non-discrimination which provides equal treatment between imported products and local/domestic products. 26. Government makes payments to local suppliers to reduce the production costs of the supplier and help them compete in trade ..... A) Embargo. B) Standard. C) Subsidy. D) None of above. Show Answer Correct Answer: C) Subsidy. 27. A disadvantage of international trade:International trade increases globalisation, which has its own disadvantages 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. 28. The theory of comparative advantage ..... A) Was the first theory to incorporate dynamic changes in patterns of trade. B) Explains patterns of trade based on factor endowments. C) Provides direct policy advice. D) Reduces the wealth of the nation in the short run. Show Answer Correct Answer: B) Explains patterns of trade based on factor endowments. 29. What Is Free Trade A) International trade left to its natural course with tariffs, quotas, embargoes, subsidies, and other restrictions. B) Trade that protects:national security, domestic employment, and the environment in developing countries. C) International trade left to its natural course without tariffs, quotas, or other restrictions. D) Economic sanctions applied by one or more countries against a targeted country, group, or individual. Show Answer Correct Answer: C) International trade left to its natural course without tariffs, quotas, or other restrictions. 30. An unfavorable balance of trade that occurs when a country's import are greater than its exports A) Trade surplus. B) The trade fails. Show Answer Correct Answer: B) The trade fails. ← 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