This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 6 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Complete:Before he bought his new BMW, Jim ..... A) Took it for a test drive. B) The last thing I need is. C) You've got a deal. D) Haggled. Show Answer Correct Answer: A) Took it for a test drive. 2. What is an advantage of international specialisation? A Choice is limited. B Countries become over-dependent on each other. C Resources are used more efficiently. D Transport costs are decreased. A) A. B) D. C) C. D) B. Show Answer Correct Answer: C) C. 3. How does the specialisation lead to great efficiency? A) Labour productivity went down. B) Managerial skill will not be developed. C) It saves time for the production. D) Reduce the skill of labour. Show Answer Correct Answer: C) It saves time for the production. 4. Exchange Instability is the main reason that discourages businesses in going online. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 5. A country imports goods and services that are comparatively more desired than abroad A) True. B) False. Show Answer Correct Answer: A) True. 6. What determines what a country can produce efficiently and successfully? A) The country's human, physical, technological, and financial resources. B) The country's ability to maximize exports and minimize imports. C) The country's supply of gold. D) The country's ability to innovate and create new products. Show Answer Correct Answer: A) The country's human, physical, technological, and financial resources. 7. The customer and the shopkeeper ..... over the silver plate for more than an hour A) Distill. B) Extract. C) Intrepid. D) Haggled. Show Answer Correct Answer: D) Haggled. 8. The purpose of employee performance appraisal is..... A) Limit the number of employees. B) Developing employee skills. C) Human Resource Development. D) Imposing sanctions or punishment. Show Answer Correct Answer: D) Imposing sanctions or punishment. 9. Which of the following is NOT a factor affecting international trade? A) Exchange rates. B) Government policies and regulations. C) Climate and geographical location. D) Language and cultural differences. Show Answer Correct Answer: D) Language and cultural differences. 10. Alexander Hamilton proposed the Infant Industry Agreement in 1972. A) False. B) True. Show Answer Correct Answer: A) False. 11. Countries adopting mercantilism favor: A) Import more than export. B) Budget surplus. C) The trade fails. D) Trade surplus. Show Answer Correct Answer: C) The trade fails. 12. Tariff increases the price of imported goods. A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 13. Huge Foreign Indebtedness is the main reason that discourages businesses in going online. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 14. Why does the US import a lot of clothing? A) It's cheaper to import than produce domestically. B) Imported clothing is more fashionable. C) Domestic clothing production is insufficient. D) It helps other countries' economies. Show Answer Correct Answer: A) It's cheaper to import than produce domestically. 15. Which account indicating reserves of Forex with RBI A) Cash reserve account. B) Gold reserve account. C) Official reserve account. D) None of these. Show Answer Correct Answer: C) Official reserve account. 16. A ban; government prohibits the import of that item. A) Embargo. B) Standard. C) Subsidy. D) Tariff. Show Answer Correct Answer: A) Embargo. 17. Making, buying, and selling goods and services within a country is called A) International business. B) Global dependency. C) Domestic business. D) None of these. Show Answer Correct Answer: C) Domestic business. 18. Explain the exporter's responsibility under the shipment term of "CPT place of destination Incoterms 2018." A) Buyer delivers the goods to the carrier or another person nominated by the buyer at an agreed place (if any place is agreed between the parties) and the buyer must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination. B) Importer delivers the goods to the carrier or another person nominated by the importer at an agreed place (if any place is agreed between the parties) and the importer must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination. C) Seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any place is agreed between the parties) and the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination. D) All the above. Show Answer Correct Answer: C) Seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any place is agreed between the parties) and the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination. 19. If you are traveling to a foreign country and have your fortune told on the roadside and pay a certain fee (cash settlement, local currency), is this considered international trade? A) Belong. B) Does not belong. Show Answer Correct Answer: A) Belong. 20. Comparative Advantage is ..... A) Who can produce the most. B) Who can produce at the lowest opportunity cost. C) Coach Hayes. D) Who can produce with the least number of resources. Show Answer Correct Answer: B) Who can produce at the lowest opportunity cost. 21. Helps businesses compete with industry leaders A) Free Trade. B) Protectionism. Show Answer Correct Answer: A) Free Trade. 22. The Royal Malaysian Custom Department (RMCD) delegated the Malaysian Timber Industry Board to issue the import licenses for timber and timber products in Peninsular Malaysia and Sabah. A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 23. Define and explain the concept of time-space convergence. A) It refers to places becoming more isolated over time. B) Time-space convergence has no relevance in geography. C) As travel times decrease, places feel closer together, which is known as time-space convergence. D) Time-space convergence means places feel closer together as travel times increase. Show Answer Correct Answer: C) As travel times decrease, places feel closer together, which is known as time-space convergence. 24. Which theory suggests that a country should export those goods and services for which it is more productive than other countries and import those goods and services for which other countries are more productive? A) Comparative advantage. B) Specialization of countries. C) Absolute advantage. D) Mercantilism. Show Answer Correct Answer: C) Absolute advantage. 25. Make the phrase 'Made-In-Malaysia' synonymous with excellence, reliability and trustworthiness. A) HDC. B) MATRADE. C) TREES. D) WHAT. Show Answer Correct Answer: B) MATRADE. 26. Occurs when a country can produce a good at a lower opportunity cost than another country A) Absolute Advantage. B) Free Trade. C) Balance of Trade. D) Comparative Advantage. Show Answer Correct Answer: D) Comparative Advantage. 27. There is a quote that say: " ..... is the only multilateral trade system in which developed and developing countries sit together at par" . Fill in blanks A) European Union. B) United Nations. C) Asean. D) WTO. Show Answer Correct Answer: D) WTO. 28. What did World Bank economists calculate about the barriers faced by exports from low-income countries? A) They are lower than those faced by major industrialized countries. B) They are irrelevant in today's world. C) They are higher than those faced by major industrialized countries. D) They have no impact on trade. Show Answer Correct Answer: C) They are higher than those faced by major industrialized countries. 29. Which organization is the Japanese ECA? A) Japan Board for International Corp. B) Japan Bank for International Cooperation. C) Japan Bank for International Corp. D) None of above. Show Answer Correct Answer: B) Japan Bank for International Cooperation. 30. An embargo is a complete ban on certain products coming in or leaving the country? A) False. B) True. Show Answer Correct Answer: B) True. ← PreviousNext →Related QuizzesInternational Economics QuizzesEconomics QuizzesInternational Trade Quiz 1International Trade Quiz 2International Trade Quiz 3International Trade Quiz 4International Trade Quiz 5International Trade Quiz 7International Trade Quiz 8International Trade Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books