This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 63 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 63 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following statement is/are true? I. Under this system, governments wanted to control and regulate trade in the new lands. II. Their end goal was to have favorable balance of trade where they exported more than they imported. A) Both statement are False. B) Only statement I is True. C) Only statement II is true. D) Both statement are True. Show Answer Correct Answer: D) Both statement are True. 2. Which factor might attract a multinational corporation to a country? A) Good tourist attractions. B) Cheap raw materials. C) High average monthly wage. D) None of above. Show Answer Correct Answer: B) Cheap raw materials. 3. All are the global providers of credit information, covering the most important trade markets with millions of companies in their databases:except A) D&B. B) Coface. C) Having discovered. D) Experian. E) P&G. Show Answer Correct Answer: E) P&G. 4. Japan places a quota on the number of Ford trucks imported into Japan. Which of the following groups benefits from this trade barrier? A) Japanese auto makers. B) U.S. auto makers. C) U.S. workers. D) Japanese consumers. Show Answer Correct Answer: A) Japanese auto makers. 5. Which mechanism gives tariff concessions to third world states on certain imports, as an exception to the most-favored nation (MFN) principle? A) North American Free Trade Agreement (NAFTA). B) Organization of Petroleum Exporting Countries (OPEC). C) Most-favored nation (MFN). D) Generalized System of Preferences (GSP). Show Answer Correct Answer: D) Generalized System of Preferences (GSP). 6. The tool used to find the causes and consequences of errors is..... A) Fishbone diagram. B) Affinity diagram. C) Tree diagram. D) Histogram. Show Answer Correct Answer: A) Fishbone diagram. 7. The source of beneficial free trade in the Ricardian world is A) Comparative advantage based on different factor endowments. B) Comparative advantage based on different labor productivities. C) Comparative advantage based on increasing returns to scale technology. D) Economies of scale in production. Show Answer Correct Answer: A) Comparative advantage based on different factor endowments. 8. Benefits that must be immediately given unconditionally to products from other countries can be in the form of: A) Selling price. B) Market location. C) Applicable import duties and taxes. D) Promotion media. Show Answer Correct Answer: C) Applicable import duties and taxes. 9. If trading was not possible, the living standards or the standard of comfort would be higher. A) True. B) False. Show Answer Correct Answer: B) False. 10. What is the meaning of Boarder Crossing? A) Activities of selling goods abroad. B) The activity of buying goods from abroad. C) This system is carried out by making a trade agreement with a country. D) Trade that occurs in countries that border each other. Show Answer Correct Answer: B) The activity of buying goods from abroad. 11. Underdeveloped nations tend to trade what type of goods A) High tech goods. B) High skill products. C) Low skill products. D) Finished products. Show Answer Correct Answer: C) Low skill products. 12. Islamic countries are members of the OIC (Organization of Islamic Cooperation) organization. This OIC is a form of cooperation..... A) Multilateral. B) Bilateral. C) Regional. D) National. Show Answer Correct Answer: A) Multilateral. 13. Between 1992 & 1994 cotton crop was affected by ..... A) Hail. B) Animals. C) Thunder Storms. D) Floods. E) No Electricity. Show Answer Correct Answer: D) Floods. 14. The form of discrimination from an action can be reflected in..... A) De jure and de minimis. B) Again and in fact. C) De jure and de facto. D) Again & again. Show Answer Correct Answer: C) De jure and de facto. 15. Economic development is important in countries because it A) Reduces the gross national product (GNP) and population growth. B) Usually means a zero population growth (ZPG) policy is established. C) Reduces poverty and increases social and political stability. D) Usually means a country produces more than it consumes. Show Answer Correct Answer: C) Reduces poverty and increases social and political stability. 16. Which of the following is NOT true about the import demand curve? A) It is steeper than the domestic demand curve in the importing country. B) It is flatter than the domestic demand curve in the importing country. C) It slopes down. D) It intersects the vertical axis at the domestic equilibrium price in autarky equilibrium. Show Answer Correct Answer: A) It is steeper than the domestic demand curve in the importing country. 17. Adam Smith was best known as an advocate of ..... A) Free-market economics. B) Mercantilism. C) Low-cost manufacturing. D) Labor unions. Show Answer Correct Answer: A) Free-market economics. 18. Computers made in China are used by students in London is an example of ..... A) Import. B) Export. Show Answer Correct Answer: A) Import. 19. People who are in favor of free trade believe there should be several trade barriers put into place to restrict trade and that a country should be more reliant on itself. True of False. A) False. B) True. Show Answer Correct Answer: A) False. 20. Who has the comparative advantage in cars? A) Neither. B) X. C) Y. D) Unknown. Show Answer Correct Answer: C) Y. 21. Which definition describes a trading bloc? A) A group of countries which agree to eliminate all trading restrictions with each other. B) A group of countries which control supplies of natural resources to influence world prices. C) A large multinational company which tries to monopolise global trade in all its products. D) A number of companies which deal in similar products and share advertising costs. Show Answer Correct Answer: A) A group of countries which agree to eliminate all trading restrictions with each other. 22. What does a certificate of Origin vouch for? A) It certifies the country where the goods were produced. B) It certifies you are the owner of the freight. C) It certifies that the product is an original and not a copy. D) It certifies you are importing original brands legally. Show Answer Correct Answer: A) It certifies the country where the goods were produced. 23. Succession of increasing trade barriers between nations A) Trade War. B) Embargo. C) Tariff. D) None of above. Show Answer Correct Answer: A) Trade War. 24. The following are the reasons for holding international trade, namely..... A) Dumping. B) Direct investment. C) Outsourcing. D) Competition. Show Answer Correct Answer: D) Competition. 25. Was established in 1946 A) World Bank. B) International Monetary Fund. C) World Trade Organization. D) None of above. Show Answer Correct Answer: B) International Monetary Fund. 26. In 2015, Russia banned the imports of food, such as milk, from the European Union (EU). Which outcomes are most likely to happen as a result? A) B. B) D. C) A. D) C. Show Answer Correct Answer: B) D. 27. Buying and selling of goods and services beyond the boundaries A) Internal trade. B) Retail trade. C) International trade. D) Wholesale trade. Show Answer Correct Answer: C) International trade. 28. The more individuals and nations specialize and trade, the more dependent they become on each other to supply their basic wants. A) Comparative advantage. B) Absolute advantage. C) Interdependence. D) Specialization. Show Answer Correct Answer: C) Interdependence. 29. Trading is an economic activity often referred to as repeated buying and selling of commodities and availing of services for human satisfaction and gratification. A) FALSE. B) TRUE. Show Answer Correct Answer: A) FALSE. 30. A tariff is when a ..... is put on an imported good A) Tax. B) Limit. C) Block. D) None of above. Show Answer Correct Answer: A) Tax. ← 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