This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 67 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 67 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A document which accompanies the invoice for goods shipped by air A) Documentary Bill. B) Bill of Exchange. C) Airway Bill. D) Bill of Lading. Show Answer Correct Answer: C) Airway Bill. 2. By lowering production costs, ..... help domestic producers compete against foreign imports. A) Tariffs. B) Duties. C) Quotas. D) Subsidies. Show Answer Correct Answer: D) Subsidies. 3. What is not a away governments punish countries through trade? A) Quotas. B) Military force. C) Embargoes. D) Trade sanctions. Show Answer Correct Answer: B) Military force. 4. By lowering production costs, ..... help domestic producerscompete against foreign imports. A) Duties. B) Subsidies. C) Tariffs. D) Quotas. Show Answer Correct Answer: B) Subsidies. 5. The MFN principle is regulated in GATT, GATS and TRIPS in article..... A) Article II.2-Article II.1-Article 4. B) Article II.1-Article I.2-Article 3. C) Article I.2-Article II.2-Article 3. D) Article I.1-Article II.1-Article 4. Show Answer Correct Answer: D) Article I.1-Article II.1-Article 4. 6. Tires made in American factories are used on cars in Europe. A) Import. B) Export. Show Answer Correct Answer: B) Export. 7. A government removed the quota on goods imported into the country. What is the most likely result of this? A a decrease in demand for domestic production B a decrease in domestic unemployment C a decrease in exports D a decrease in the balance of trade deficit A) B. B) C. C) A. D) D. Show Answer Correct Answer: C) A. 8. If nations limit trade in clothing who will benefit? A) Foreign Producers of Clothing. B) Depart stores who sell clothing. C) Domestic producers of clothing. D) Domestic consumers of clothing. Show Answer Correct Answer: C) Domestic producers of clothing. 9. In Porter's diamond of competitive advantage theory, the conditions governing how companies are created, organized, and managed, and the nature of domestic rivalry refers to: A) Supply Conditions. B) Strategy, Structure and Rivalry. C) Supporting Industries. D) Factor Endowments. Show Answer Correct Answer: B) Strategy, Structure and Rivalry. 10. The wholesale trade sells the goods to the final consumer. A) True. B) False. Show Answer Correct Answer: B) False. 11. This refers to economies that are unique to a firm. For instance, a firm may hold a patent over a mass production machine, which allows it to lower its average cost of production more than other firms in the industry. A) Economies of scale. B) Perfectly competitive market. C) Internal economies of scale. D) External economies of scale. Show Answer Correct Answer: C) Internal economies of scale. 12. Who should import crowns? A) Avalon. B) Camelot. Show Answer Correct Answer: B) Camelot. 13. Which of the following has the most trading power in the world? A) Middle East. B) EU. C) USA. D) Japan. E) China. Show Answer Correct Answer: B) EU. 14. When the exchange rate changes from 1 GBP to $ 1.50 to 1 GBP to $ 2. What has happened to the value of the dollar against the pound? A) It has risen. B) It has fallen. Show Answer Correct Answer: B) It has fallen. 15. India is a member country of which of the following trading block? A) SAFTA. B) ASEAN. C) EU. D) OPEC. Show Answer Correct Answer: A) SAFTA. 16. What does the term 'balance of payments' mean in economics? A) An accounting statement that records all international transactions. B) An accounting statement that records domestic transactions. C) An accounting statement that records financial transactions. D) An accounting statement that records trade deficits and surpluses. Show Answer Correct Answer: A) An accounting statement that records all international transactions. 17. Different countries are differently gifted, with production of different commodities A) MONETARY UNITS OR CURRENCY. B) IMMOBILITY OF FACTORS OF PRODUCTION. C) AVAILABILITY OF NATURAL RESOURCES. D) None of above. Show Answer Correct Answer: C) AVAILABILITY OF NATURAL RESOURCES. 18. Which is NOT an example of a trade barrier? A) Embargo. B) NAFTA. C) Quota. D) Tariff. Show Answer Correct Answer: B) NAFTA. 19. ..... advocates that a country should focus and specialize in the production of goods that it can produce relatively at a lower cost than other countries. A) Theory of absolute advantage. B) Hecksher Ohlin Theory. C) Theory of comparative advantage. D) Theory of mercantilism. Show Answer Correct Answer: C) Theory of comparative advantage. 20. What do you understand by Exchange Rates A) Price of one currency expressed in terms of another. B) Price of currency which can increase and decrease. Show Answer Correct Answer: A) Price of one currency expressed in terms of another. 21. The U.S. can produce 1, 000 iPads or 20 cars. China can produce 1, 800 iPads or 10 cars. Who should produce what? A) U.S.-iPadChina-car. B) U.S.-carChina-iPad. C) Both should produce iPads. D) They should not specialize. Show Answer Correct Answer: B) U.S.-carChina-iPad. 22. ..... is the last step of the chain of business middlemen A) Agent. B) Retailer. C) Wholesaler. D) Customer. Show Answer Correct Answer: B) Retailer. 23. Advantage of international trade A) Economic and political dependence. B) Higher income and economic growth. C) Transportation cost. D) None of above. Show Answer Correct Answer: B) Higher income and economic growth. 24. A legal document issued by a carrier to a shipper that details the type, quantity, and destination of the goods being carried A) Tariff. B) Bill of lading. C) Certificate or origin. D) Quota. Show Answer Correct Answer: B) Bill of lading. 25. What is an International Trade? A) Production of goods and services required resources. B) Exchange of capital, goods and services across international borders or territories. C) Countries sell their products to others also when the production of goods comes in surplus quantities. D) All commercial activities that take place to promote the transfer of goods. Show Answer Correct Answer: B) Exchange of capital, goods and services across international borders or territories. 26. Zero-sum game is a 'win-lose' situation A) True. B) False. Show Answer Correct Answer: A) True. 27. Which of the following trade theories divides the nations of the world into three categories? A) Factor endowment. B) Strategic trade. C) Product life cycle. D) National competitive advantage of industries. Show Answer Correct Answer: C) Product life cycle. 28. How many members are there in WTO? A) 164. B) 120. C) 139. D) 174. Show Answer Correct Answer: A) 164. 29. Unrestricted free trade is beneficial, but because of diminishing returns, the gains may not be as great as the simple model would suggest. A) True. B) False. Show Answer Correct Answer: A) True. 30. How does a tariff differ from a quota? A A tariff is on exports, a quota is on imports. B A tariff is on the quantity of an import, a quota is on the price of an import. C A tariff raises government revenue, a quota raises no government revenue. D A tariff raises the price at which imports sell, a quota does not. A) C. B) D. C) B. D) A. Show Answer Correct Answer: A) C. ← 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