This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 61 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 61 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What are some examples of how the government uses taxes to contribute to society? A) Public hospitals/medicare. B) Maintaining law and order (police, prisons). C) Welfare payments. D) Essential services-education, roads. E) All of the above. Show Answer Correct Answer: E) All of the above. 2. The third assumption of Comparative Advantage Theory: ..... can move freely among industries ..... but is incapable of moving ..... A) Cash-within a nation-between nations. B) Labor-between nations-within a nation. C) Labor-within a nation-between nations. D) Technology-between nations-within a nation. Show Answer Correct Answer: C) Labor-within a nation-between nations. 3. The practice of selling a commodity in two countries at a price that differs for reasons not related to costs is called ..... A) Slave trade. B) Dumping. C) Trade liberalisation. D) Free trade. Show Answer Correct Answer: B) Dumping. 4. When one country can produce a good more efficiently than another country. The ability to produce more of a given product using a given amount of resources A) Fair Trade. B) Absolute Advantage. C) Globalization. D) NAFTA. Show Answer Correct Answer: B) Absolute Advantage. 5. What is the result of nations specializing in the production of goods? A) Self-sufficiency. B) Incentive to trade. C) Economic efficiency. D) Decreasing prices. Show Answer Correct Answer: B) Incentive to trade. 6. Country's ability to produce more of a given product than another country can A) Absolute advantage. B) Comparative advantage. Show Answer Correct Answer: A) Absolute advantage. 7. Which government policy is most likely to improve a country's balance of trade? A) A decrease in the exchange rate. B) A decrease in the level of tariffs. C) A decrease in direct taxation. D) An increase in government expenditure. Show Answer Correct Answer: A) A decrease in the exchange rate. 8. The purpose of the VIES system is to ..... A) Charge the VAT to the seller in any country of the EU. B) Exempt any transaction made in the EU from VAT. C) Verify the VAT ID number of a company in the EU. D) Charge the VAT to the buyer in any country of the EU. Show Answer Correct Answer: C) Verify the VAT ID number of a company in the EU. 9. A large corporation that has operations in several countries. A) Globalization. B) International trade. C) Multinational. D) Mini-national. Show Answer Correct Answer: C) Multinational. 10. An invisible import is ..... A) A service that has been sold to another country. B) A physical good that has been brought in from another country. C) A physical good that has been sold to another country. D) A service that has been brought in from another country. Show Answer Correct Answer: D) A service that has been brought in from another country. 11. Which is not a purpose of tariff measures? A) Increase government revenues. B) Force consumers to pay more for certain imports. C) Are pro-producer and anti-consumer. D) Increase the overall efficiency of the world economy. Show Answer Correct Answer: D) Increase the overall efficiency of the world economy. 12. Letter of credit A) Card account. B) Credit of letter. C) Credit card. D) Letter of credit. Show Answer Correct Answer: D) Letter of credit. 13. What is not included in Multilateral Trade Agreements is..... A) TRIPS. B) Agreement on Government Procurement. C) GATS. D) Agreement on Trade-Related Investments Measures. Show Answer Correct Answer: B) Agreement on Government Procurement. 14. Which of the following includes additional packaging, transportation and insurance costs? A) Export / import. B) Wholly owned subsidiary. C) Joint venture. D) Franchising. Show Answer Correct Answer: A) Export / import. 15. In which of the following, secrets can get divulged. A) Export. B) Import. C) Wholly owned subsidiary. D) Licensing / franchising. Show Answer Correct Answer: D) Licensing / franchising. 16. Which of the following rights is not include in the ILO (International Labor Organization): A) The elimination of all forms of forced or compulsory labour. B) Using employees who have not had any training or national skill certificates for their jobs. C) The effective prohibition of child labour. D) The elimination of discrimination in respect of employment and occupation. Show Answer Correct Answer: B) Using employees who have not had any training or national skill certificates for their jobs. 17. Business Ethics are not divorced from ....., which are the generally accepted principles of right and wrong governing the conduct of individuals. A) Leadership. B) Personal ethics. C) Human rights. D) None of above. Show Answer Correct Answer: B) Personal ethics. 18. What is an advantage if a region specialises in a narrow range of products? A Other regions will become over-dependent on the region. B Scarce resources are used more efficiently. C The level of production in the region will decrease. D The region's system of transport is improved A) A. B) B. C) C. D) D. Show Answer Correct Answer: B) B. 19. The total Value of goods and services traded is considered to be A) Direction of trade. B) Balance of trade. C) Volume of trade. D) Composition of trade. Show Answer Correct Answer: C) Volume of trade. 20. Which includes international trade in services A) Gojek. B) Mobil. C) Grab. D) Cow. Show Answer Correct Answer: C) Grab. 21. International trade is subject to ..... A) Economic. B) Law or legislation. C) Politics. D) Good and services. Show Answer Correct Answer: B) Law or legislation. 22. Import quotas are another common barrier countries use. A) All are true. B) It is a limit on the amount of a particular good that could imported in a given amount of time. C) By limiting the supply, you drive the price up, thereby making the imported good more expensive than its domestic competitor. D) None of above. Show Answer Correct Answer: A) All are true. 23. Watches made in China are worn by people in Nassau A) Import. B) Export. Show Answer Correct Answer: A) Import. 24. Development of ..... and communication sectors combined with the need to improve living conditions. A) Health. B) Service. C) Telecommunication. D) Transportation. Show Answer Correct Answer: D) Transportation. 25. Which theory suggests that nations will develop comparative advantages based on their locally abundant factors? A) Heckscher-Ohlin theory. B) Comparative advantage theory. C) Strategic trade theory. D) Absolute advantage theory. Show Answer Correct Answer: A) Heckscher-Ohlin theory. 26. The value of one country's currency expressed in terms of another country's currency is referred to as the: A) Standards. B) Trade Rate. C) Exchange Rate. D) Common Currency. Show Answer Correct Answer: C) Exchange Rate. 27. This document is used when sending goods by air: A) Airway Bill. B) Certificate of Origin. C) Bill of Lading. D) Consular Invoice. Show Answer Correct Answer: A) Airway Bill. 28. As a challenge to Global trade, Intense competition refers to ..... A) Higher transport costs as Ireland is an Island nation. B) A country may not have the natural resources needed to make products. C) Larger incoming companies may lead to closure of smaller Irish companies. D) Companies will have to change their packaging to suit certain cultures. Show Answer Correct Answer: C) Larger incoming companies may lead to closure of smaller Irish companies. 29. Foreign investment can be in the form of ..... A) Direct investment. B) Portfolio investment. C) Both 'a' and 'b'. D) None of these. Show Answer Correct Answer: C) Both 'a' and 'b'. 30. The difference between the value of a country's visible and invisible exports and the value of its visible and invisible imports is referred to as the A) Gross national product. B) Balance of trade. C) Per capita income. D) Balance of payments. Show Answer Correct Answer: B) Balance of 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