This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 66 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 66 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What does OPEC stand for? A) Organization of Petroleum Exporting Countries. B) Oil of Political Economic Countries. C) Organization of People Economic Communitities. D) Oil People Economically Consume. Show Answer Correct Answer: A) Organization of Petroleum Exporting Countries. 2. How can you find out what a country specializes in? A) Look at what larger companies are investing in. B) Look at what consumers are purchasing. C) Look at what a country is importing. D) Look at what a country is exporting. Show Answer Correct Answer: D) Look at what a country is exporting. 3. C:ClothF:FoodIf PC/PF were to increase in the international marketplace, then ..... A) All countries would be better off. B) The terms of trade of cloth exporters improve. C) The terms of trade of food exporters improve. D) The terms of trade of all countries improve. Show Answer Correct Answer: B) The terms of trade of cloth exporters improve. 4. It is an agreement wherein it protects the intellectual property rights. A) TRIMS. B) MAY. C) TRIP. D) TRIPS. Show Answer Correct Answer: D) TRIPS. 5. What type of trade barrier would there be if the government required foreign cars to meet tough emission requirements? A) Quota. B) Embargo. C) Standard. D) Tariff. E) Subsidies. Show Answer Correct Answer: C) Standard. 6. Which country based its entire economy on importing raw materials, processing them into manufactured goods, and then exporting the finished goods in the nineteenth century? A) Great Britain. B) United States. C) France. D) Germany. Show Answer Correct Answer: A) Great Britain. 7. A large clothing manufacturer has factories in more than one country. What is not a reason why a company might decide to produce internationally? A the availability of raw materials B the high costs of transporting finished products C to ensure that wage rates are equal in all factories D to serve the local markets more easily A) A. B) B. C) D. D) C. Show Answer Correct Answer: D) C. 8. Dumping refers to A) Reducing tariffs. B) Sale of goods abroad at low a price, below their cost and price in home market. C) Buying goods at low prices abroad and selling at higher prices locally. D) Expensive goods selling for low prices. Show Answer Correct Answer: B) Sale of goods abroad at low a price, below their cost and price in home market. 9. The United States placed a limit on the number of goods that can be brought into the country for sale. This is an example of ..... A) An import quota. B) A customs duty. C) A voluntary restraint. D) A tariff. Show Answer Correct Answer: A) An import quota. 10. The goal of NAFTA was to create a " ..... " between the United States, Canada, and Mexico. A) Borderless country. B) Military alliance. C) Political union. D) Free trade zone. Show Answer Correct Answer: D) Free trade zone. 11. In international trade, comparative advantage is measured in ..... A) Foreign exchange. B) Efficiency. C) Trade-weighted value. D) Difference between money paid and money received in trade. Show Answer Correct Answer: B) Efficiency. 12. In 2009, Ecuador placed a $ 10 tax on imported shoes A) Tariff. B) Quota. C) Standard. D) Subsidy. E) Embargo. Show Answer Correct Answer: A) Tariff. 13. Free traders favor few or even no trade restrictions. A) False. B) True. Show Answer Correct Answer: B) True. 14. 1/External economies of scale will ..... average cost when output is ..... by ..... A) Reduce; increased; the industry. B) Increase; increased; the industry. C) Reduce; increased; a firm. D) Reduce; reduce; the industry. Show Answer Correct Answer: A) Reduce; increased; the industry. 15. The producer with the lowest opportunity cost. A) Absolute Advantage. B) Opportunity Cost. C) Comparative Advantage. D) Trade Offs. Show Answer Correct Answer: C) Comparative Advantage. 16. The exchange rate between 2 countries is determined by, A) Supply and Demand. B) Inflation/Interest Rates. C) Balance Trade. D) Fixed Percentage. Show Answer Correct Answer: A) Supply and Demand. 17. People who adhere to this belief argue that industries should not have to cope with foreign industries that are less efficient but pay lower wages? A) Productivity and Competitiveness. B) The Pauper Labor Argument. C) Exploitation. D) Economies of Scale. Show Answer Correct Answer: B) The Pauper Labor Argument. 18. A country decides to remove all its tariffs and engage in free international trade. What will be the final decision the country has to make before free trade takes place? A deciding which resources to allocate to the production of goods and services for international trade B deciding which goods and services should be provided for international trade C identifying the opportunity costs of production of goods and services which might be used for international trade D setting an appropriate exchange rate for the international trade of goods and services A) B. B) D. C) A. D) C. Show Answer Correct Answer: B) D. 19. What is the difference between the following A) Imports is to exchange goods with the country. B) Imports is restricted to certain countries. C) Exports is bringing goods into the country and imports is the opposite. D) Imports refers to bringing goods and products into the country and exports is taking or selling goods to other countries. Show Answer Correct Answer: D) Imports refers to bringing goods and products into the country and exports is taking or selling goods to other countries. 20. What is the largest industry in the world? A) Fashion. B) Entertainment. C) Professional sports. D) International trade. Show Answer Correct Answer: D) International trade. 21. How many types of international insurance are there? A) 4. B) 3. C) 2. D) 5. Show Answer Correct Answer: B) 3. 22. Assume that there is an increase in United States consumers' preference for European cars. Which of the following changes will most likely take place in the market for dollars? A) It will take more Euros to purchase the same amount of dollars. B) The demand for dollars will increase. C) The supply of dollars will increase. D) Both the demand for and the supply of dollars will decrease. E) There will be no change in the foreign exchange market. Show Answer Correct Answer: C) The supply of dollars will increase. 23. WHAT IS HEADACHE? A) BACK PAIN. B) TOOTHACHE. C) HEADACHE. D) None of above. Show Answer Correct Answer: C) HEADACHE. 24. If the price of an iPad in Brazil is $ 500 U.S. dollars and 1140 Brazilian Real, what is the exchange rate of Brazilian Real to U.S. Dollars? A) 640 Brazilian Real to 1 dollar. B) 2.28 Brazilian Real to 1 dollar. C) 1640 Brazilian Real to 1 dollar. D) 0.43 Brazilian Real to 1 dollar. Show Answer Correct Answer: B) 2.28 Brazilian Real to 1 dollar. 25. In 2017, which economy was Singapore's largest trade partner for services? A) US. B) China. C) Malaysia. D) EU. Show Answer Correct Answer: A) US. 26. The party carrying out the import activity is called ..... A) Trader. B) Exporter. C) Importer. D) Buyer. Show Answer Correct Answer: C) Importer. 27. If resource companies in Canada want to increase their business, they should not sell globally, they should just stay local. A) False. B) True. Show Answer Correct Answer: A) False. 28. What is an advantage to a country of joining a trading bloc? A) Reduced choice for consumers. B) Loss of national identity. C) Free trade between member countries. D) Increased prices in member countries. Show Answer Correct Answer: C) Free trade between member countries. 29. What does the abbreviation WTO stand for in international economics? A) World Tariff Organization. B) Worldwide Trading Order. C) World Taxation Office. D) World Trade Organization. Show Answer Correct Answer: D) World Trade Organization. 30. CIF and CFR are the same trade terms covering which transport methods? A) All types of transport. B) Only maritime transport and inland waterway transport. Show Answer Correct Answer: B) Only maritime transport and inland waterway transport. ← 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