This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 68 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 68 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Interest can be obtained by family households because they do ..... A) Renting out the land owned by the company. B) Lend an amount of money or funds as the business capital of the company. C) Sacrifice his energy so he can work at the company. D) Provide energy and thoughts in managing the company. Show Answer Correct Answer: B) Lend an amount of money or funds as the business capital of the company. 2. What could be some negative side effects of international trade? A) Unsafe and unfair working conditions in factories abroad. B) Environmental degradation due to increased industrial activities. C) Both A and B. D) None of the above. Show Answer Correct Answer: C) Both A and B. 3. A policy in which a nation does not try to limit imports or exports by enacting tariffs (taxes on imports) or subsidies (money to assist an industry so prices can remain low). A) Free trade. B) Trade war. C) Trade empowerment zone. D) Trade alliance. Show Answer Correct Answer: A) Free trade. 4. The ability of U.S. firms to produce high-tech goods efficiently give the U.S. a(n) ..... advantage in technology equipment manufacture. A) Obvious. B) Comparative. C) Competitive. D) Investment. Show Answer Correct Answer: B) Comparative. 5. Australia's main trading partners are A) Russia & China. B) New Zealand & the USA. C) China & Japan. D) China & the USA. Show Answer Correct Answer: C) China & Japan. 6. If the opportunity costs of producing two goods differ between two countries, then specialization and free trade will benefit both countries. A) False. B) True. Show Answer Correct Answer: B) True. 7. What theme of international economics is mainly concerned with the trade rules implemented by different sovereign countries? A) International Trade. B) International Policy Coordination. C) Exchange Rate Determination. D) Protectionism. Show Answer Correct Answer: B) International Policy Coordination. 8. What is the purpose of the Personal Information Protection and Electronic Documents Act (PIPEDA) in Canada? A) To regulate the sale of goods and provide general rules to govern transactions. B) To maintain and encourage competition in Canada. C) To set out the ground rules for how businesses must handle personal information. D) To maintain and encourage competition in Canada. Show Answer Correct Answer: C) To set out the ground rules for how businesses must handle personal information. 9. Percentage of exclusion of world trade in textiles, other agricultural commodities and mining products from GATT-WTO liberalization. A) 90%. B) 70%. C) 30%. D) 50%. Show Answer Correct Answer: A) 90%. 10. The risk of a separate commercial transaction not being realized in a contractual way due to measures emanating from the government or authority of the buyer's own or any other foreign country. What is it? A) Political risks. B) Adverse business risks. C) Commercial risks. D) Financial risks. Show Answer Correct Answer: A) Political risks. 11. What can be excluded from MFN include..... A) Form a free trade agreement that only applies to countries in the group. B) Granting special access to developing countries to enter the markets of developed countries. C) The imposition of higher barriers to products from a country that is judged to have acted unfairly (unfair). D) All are correct. Show Answer Correct Answer: D) All are correct. 12. The president has promised trade barriers against China and a lot of people are worried that China might retaliate and enact the same trade barriers? This sounds like the beginnings of a ..... A) Trade war. B) A misallocation of recources. C) The national security. D) The national of domestic jobs. Show Answer Correct Answer: A) Trade war. 13. Which of these will increase the United States trade deficit? A) Mexican consumers buying American cars. B) An increase in French tourism to the United States. C) A decrease in the international value of the dollar. D) American firms purchasing industrial equipment from German companies. Show Answer Correct Answer: D) American firms purchasing industrial equipment from German companies. 14. What is another form of invisible trade? A) Mining. B) Agriculture. C) Tourism. D) Manufacturing. Show Answer Correct Answer: C) Tourism. 15. Selling goods abroad at a cheaper price than domestically is called..... A) Protection. B) Tariffs/duties. C) Dumping. D) Embargo. Show Answer Correct Answer: C) Dumping. 16. Policies in international trade that are carried out to protect domestic goods are called..... A) Protection. B) Rates. C) Dumping. D) Quota. Show Answer Correct Answer: A) Protection. 17. What is Survival referring to in Global trade ..... A) Companies will have to change their packaging to suit certain cultures. 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) The home market is too small for making profit-so they export to other countries also. Show Answer Correct Answer: D) The home market is too small for making profit-so they export to other countries also. 18. The US imposed tariffs on cars and motorcycles from Germany.What is the effect of these tariffs? A) Decrease in inflation in the US. B) Decrease in trade between the US and Germany. C) Increase in profits of car and motorcycle producers from Germany. D) Increase in standards of living in the US and in Germany. Show Answer Correct Answer: B) Decrease in trade between the US and Germany. 19. This term means thta a quoted price includes the cost of goods and transport charges to the destination port. A) CFR. B) FOB. Show Answer Correct Answer: A) CFR. 20. Foreign trade is defined as selling goods to other countries A) True. B) False. Show Answer Correct Answer: B) False. 21. The dispute resolution system at the WTO recognizes 2 (two) levels of examination, namely..... A) Basic level and level 1. B) Panel level and appeal level (Appellate Body). C) Reporting level and authorization level. D) Level of reporting and level of evidence. Show Answer Correct Answer: B) Panel level and appeal level (Appellate Body). 22. Many low-income countries rely on multinational companies (MNCs) to provide economic development.What is a disadvantage of this for the low-income country? A) New production techniques are introduced. B) The balance of payments may improve. C) Local firms close because MNCs are more efficient. D) The MNCs have to pay taxes on their profits. Show Answer Correct Answer: C) Local firms close because MNCs are more efficient. 23. Which service allows Importers the option of duty-free or duty-deferral when importing goods? A) Simplified Order Tracking. B) Export Control Systems. C) Data Logistics Service. D) Temporary Admission Service. Show Answer Correct Answer: D) Temporary Admission Service. 24. What do you call the total value of everything that produced within the country borders? A) BRETTON WOODS SYSTEM. B) GROSS DOMESTIC PROCESS. C) GROSS DOMESTIC PRODUCT. D) GROSS DOMESTIC PROGRAM. Show Answer Correct Answer: C) GROSS DOMESTIC PRODUCT. 25. Unfortunately it is ..... to keep the complete range in stock. A) Invalid. B) Insufficient. C) Uncertain. D) Uneconomic. Show Answer Correct Answer: B) Insufficient. 26. What is the primary purpose of freight insurance, also known as cargo insurance? A) To ensure timely delivery of cargo. B) To increase the shipping cost for businesses. C) To protect the financial interests of shippers, consignees, and carriers. D) To provide coverage for unforeseen perils during the manufacturing process. Show Answer Correct Answer: C) To protect the financial interests of shippers, consignees, and carriers. 27. Good that is sent to another country for sale A) Import. B) Export. Show Answer Correct Answer: B) Export. 28. What are objectives of WTO? A) Increase standards of living. B) Attain full employment; Increase real income and effective demand. C) Expand production and trade in goods, services. D) All the above are correct. Show Answer Correct Answer: D) All the above are correct. 29. The manufacturer will issue a certificate of ..... certifying thah the goods have been made to the buyer's specifications. A) Manufacture. B) Inspection. Show Answer Correct Answer: A) Manufacture. 30. Below are some of the elements of trade agreement except A) Discrimination status. B) Most-favoured nation status. C) Reciprocity. D) Trade agreements may be bilateral or multilateral. Show Answer Correct Answer: A) Discrimination status. ← 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