This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 54 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 54 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Balance of Trade A) Country's total amount of exports minus the total amount of imports. B) Foreign goods shipped into a country or region. C) Goods produced in one country, then shipped to another region or country. D) International organization overseeing world trade; ensures world trade occurs in a smooth and free-flowing manner with little disruption. Show Answer Correct Answer: A) Country's total amount of exports minus the total amount of imports. 2. Goods that are bought and sold in trade. If being shipped or moved, it may be called FREIGHT or CARGO. A) Merchandise. B) Shipment. C) Export. D) None of above. Show Answer Correct Answer: A) Merchandise. 3. What organization negotiates and administers trade agreements among member nations? A) EU. B) APEC. C) WTO. D) NAFTA. Show Answer Correct Answer: C) WTO. 4. A country wishes to increase a current account surplus on the balance of payments.Which action would it take? A) Increase import tariffs. B) Abolish an import quota. C) Tax export producers. D) Remove export subsidies. Show Answer Correct Answer: A) Increase import tariffs. 5. If the importer would like to take delivery to Kangar Perlis, it is advisable for him to accept a price using an Incoterm stating "Incoterm CIF Penang" rather than "Incoterm CIF Malaysia" . Explain TWO (2) reasons for the advised action. A) Additional cash and payment in arranging the movement of goods back to Penang. and additional cash to pay the transportation to Penang.delay in receiving the cash.Other effects of the above could see an eventual erosion of his profit margin, possibility of production delay, not fulfilling his obligation timely, etc. B) Additional work in arranging the movement of goods back to Penang. and additional cost to pay the transportation to Penang.delay in receiving the goods.Other effects of the above could see an eventual erosion of his profit margin, possibility of production delay, not fulfilling his obligation timely, etc. C) Additional time in arranging the movement of goods back to Penang. and additional time to pay the transportation to Penang.delay in receiving the money.Other effects of the above could see an eventual erosion of his profit margin, possibility of documents delay, not fulfilling his obligation timely, etc. D) All the above. Show Answer Correct Answer: B) Additional work in arranging the movement of goods back to Penang. and additional cost to pay the transportation to Penang.delay in receiving the goods.Other effects of the above could see an eventual erosion of his profit margin, possibility of production delay, not fulfilling his obligation timely, etc. 6. What is a deficit? A) Break even amount t the end. B) Less money left at the end (a loss). C) More money left at the end (profit). D) None of above. Show Answer Correct Answer: B) Less money left at the end (a loss). 7. What does a country have when it can produce a unit of good with fewer resources than another country? A) Trade Advantage. B) Absolute Advantage. C) Strategic Advantage. D) Comparative Advantage. Show Answer Correct Answer: B) Absolute Advantage. 8. Swedish economist developed the country similarity theory in 1961. A) Michael Porter. B) Paul Krugman. C) Raymond Vernon. D) Steffan Linder. Show Answer Correct Answer: D) Steffan Linder. 9. Argues that each country should produce and export goods that intensively use factors of production that it holds in abundance, and import goods that intensively use relatively scarce factors of production ..... A) ECONOMIC MOTIVES. B) FACTORS PROPORTION THEORY. C) OFFENSIVE MOTIVES. D) DEFENSIVE MOTIVES. Show Answer Correct Answer: B) FACTORS PROPORTION THEORY. 10. John Maynard kynes influenced the bretton woods system? A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 11. Countries specialise because:i) they have the resources to produce the good or service efficiently; and ii) they're better than other countries at producing the good or service. 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. 12. 'Jon Beel Mela' is famous for barter system, is organised in which state? A) Assam. B) Manipur. C) Meghalaya. D) Nagaland. Show Answer Correct Answer: A) Assam. 13. A producer is able to produce larger quantity of a product with the same amount of resources that another producer has A) Absolute advantage. B) Foreign direct investment. C) Theory of comparative advantage. D) International trade theory. Show Answer Correct Answer: A) Absolute advantage. 14. In how many ways is the amount of compensation calculated? A) 2. B) 3. C) 5. D) 4. Show Answer Correct Answer: B) 3. 15. When was the World Trade Organization established? A) 2005. B) 1985. C) 1975. D) 1995. Show Answer Correct Answer: D) 1995. 16. What is free trade known as? A) Laissez-faire economics. B) International trade. C) Protectionism. D) GDP. Show Answer Correct Answer: A) Laissez-faire economics. 17. The Austrian government gives a grant to manufacturers who produce and export automotive leather. A) Tariff. B) Embargo. C) Quota. D) Subsidy. Show Answer Correct Answer: D) Subsidy. 18. The amount that a nation imports or exports of a particular good depends on the difference between the equilibrium world price and the equilibrium domestic price. A) False. B) True. Show Answer Correct Answer: B) True. 19. Headquarter of OPEC is ..... A) Minsk, Belarus. B) Jakarta, Indonesia. C) Kathmandu, Nepal. D) Vienna, Austria. Show Answer Correct Answer: D) Vienna, Austria. 20. A trade agreement between 27 countries of with the same currency and open trade between those nations. A) NAFTA. B) WTO. C) EU. D) ABC. Show Answer Correct Answer: C) EU. 21. The U.S. Congress places a quota on sweaters made in Afghanistan. This decreases the number of sweaters America will purchase from Afghanistan. Which of the following would result from the change in quota for sweaters? A) The price of sweaters from Afghanistan sold in the U.S. will increase. B) The price of sweaters from U.S. sold in Afghanistan will increase. C) The price of sweaters from Afghanistan sold in the U.S. will decrease. D) The price of sweaters from Afghanistan sold in the U.S. will remain the same. Show Answer Correct Answer: A) The price of sweaters from Afghanistan sold in the U.S. will increase. 22. Which of the following is not an adverse effect of international trade. A) Equalisation of prices and wages. B) Uneven levels of development. C) Exploitaton of reources. D) Commercial rivalry leading to wars. Show Answer Correct Answer: A) Equalisation of prices and wages. 23. Which one of the following is a service of the logistics and transportation industry? A) Parking enforcement. B) Clothing construction. C) Animal trading. D) Marine shipping. Show Answer Correct Answer: D) Marine shipping. 24. Large companies with a great number of foreign branches and affiliates A) Mini-national. B) Multinational. C) Foreign advantage. D) Comparative advantage. Show Answer Correct Answer: B) Multinational. 25. Barriers to Trade in Ireland are defined as A) Buying and selling of goods between different countries. B) Protectionism against non-EU products. C) Goods and services being freely traded with other economies. D) Protectionism against Irish products. Show Answer Correct Answer: B) Protectionism against non-EU products. 26. When a government restricts trading with another country for political reasons, it is called ..... A) Tariff. B) Export quota. C) Embargo. D) None of above. Show Answer Correct Answer: C) Embargo. 27. Trading with as many countries that are willing to trade with you A) Export. B) Limited Trade. C) Import. D) Unlimited Trade. Show Answer Correct Answer: D) Unlimited Trade. 28. It is a pact between two or more countries that outlines the terms and conditions of trade between them. These agreements can cover various aspects of trade, such as tariffs, quotas, and rules of trade. A) Trade balance. B) Trade agreement. Show Answer Correct Answer: B) Trade agreement. 29. What is the duration of protection for an international trademark registered through the WIPO Madrid System? A) 5 years. B) 10 years. C) Lifetime. D) 20 years. Show Answer Correct Answer: B) 10 years. 30. To produce goods of good quality, reliable workers are needed in order to increase export competitiveness. This is a benefit of international trade, namely ..... A) Increase job opportunities. B) Narrowing the inequality of income distribution. C) The efficiency of production costs. D) Increase non-workforce groups. Show Answer Correct Answer: A) Increase job opportunities. ← 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