This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 70 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 70 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Invisible trade example A) Oil import. B) Payments for carriers from foreign countries services for sailing goods from there. C) Chemicals import. D) Fertilizer import. Show Answer Correct Answer: B) Payments for carriers from foreign countries services for sailing goods from there. 2. When the trade involves Al-Wakalah letter of credit, what role does the bank assume in the transaction? A) Agent for the exporter. B) Agent for the importer. Show Answer Correct Answer: B) Agent for the importer. 3. The tariff on agricultural commodities produced by poor Asian and African nations has been doubled by the industrialized nations. Consequently, trade between the agricultural nations and the industrialized one has been greatly reduced. Which of the following would result from the change in tariffs for agricultural commodities? A) There will be an increase in the standard of living in industrialized nations only. B) There will be an increase in the standard of living for both groups of nations. C) There will be a decrease in the standard of living in the industrialized nations only. D) There will be a decrease in the standard of living for both groups of nations. Show Answer Correct Answer: D) There will be a decrease in the standard of living for both groups of nations. 4. It refers to a government policy that restrict international trade to help domestic industries? A) Liberalization. B) Protectionism. C) Loudness. D) Perestroika. Show Answer Correct Answer: B) Protectionism. 5. When a company hires workers from another country to perform specific tasks, it is called: A) Exporting. B) Importing. C) Outsourcing. D) Offshoring. Show Answer Correct Answer: C) Outsourcing. 6. The burden of proof in the dispute settlement process at the WTO is found in..... A) Plaintiff and defendant. B) Only the plaintiff. C) Only the defendant. D) Panel Member. Show Answer Correct Answer: A) Plaintiff and defendant. 7. A command economy: A) Answers the What, How and For Whom questions the way they have always been answered. B) Answers the What, How and For Whom questions by central authority. C) Answers the What, How and For Whom questions using prices determined by the interaction of supply and demand. D) None of above. Show Answer Correct Answer: B) Answers the What, How and For Whom questions by central authority. 8. A "protectionist" is someone who wants to do what? A) Limit imports by using trade barriers like tariffs. B) Build up the military for protection. C) Increase the number of imports to protect developing countries. D) Decrease taxes to protect middle class families. Show Answer Correct Answer: A) Limit imports by using trade barriers like tariffs. 9. In the national security argument, people believe that economy should be: A) Rely on trade with orther countries. B) Integrative. C) Self-sufficient. D) Self-contained. Show Answer Correct Answer: C) Self-sufficient. 10. Which government policy is most likely to increase the volume of exports? A devaluation B embargoes C quotas D tariffs A) A. B) B. C) D. D) C. Show Answer Correct Answer: A) A. 11. What are the benefits of international trade? A) Increased economic growth, access to a wider range of goods and services, lower prices for consumers, job creation, and fostering international relations. B) Stagnant economic growth, limited access to goods and services, higher prices for consumers, job loss, and strained international relations. C) Reduced economic growth, limited access to goods and services, higher prices for consumers, job loss, and strained international relations. D) Decreased economic growth, limited access to goods and services, higher prices for consumers, job loss, and strained international relations. Show Answer Correct Answer: A) Increased economic growth, access to a wider range of goods and services, lower prices for consumers, job creation, and fostering international relations. 12. Define the purpose of Incoterms in Islamic international trade. A) Incoterms clearly defines the respective obligations of the Sellers and Buyers to give payments to exporters, provide documents, provide information including security-related information, procure insurance, and pack the good properly and clear them for export and import and carry out all formalities for the export and import of the goods. B) Simplify some terms of an international sales agreement. Take the place of a sales agreement or terms and conditions. Supply all terms for an international sale and not for service contracts, do not determine transfer of title, do not determine breach of contract or remedies, do not protect parties from their own risk of loss, do not cover goods before or after delivery. Incoterms clearly defines the respective obligations of the Sellers and Buyers to give notice, provide documents, provide information including security-related information, procure insurance, and pack the good properly and clear them for export and import and carry out all formalities for the export and import of the goods. C) Incoterms clearly defines the respective payments of the Sellers and Buyers to give notice to the 3rd party, provide documents, provide goods including security-related information, procure insurance, and pack the good properly and clear them for export and import and carry out all formalities for the export and import of the goods. D) All the above. Show Answer Correct Answer: B) Simplify some terms of an international sales agreement. Take the place of a sales agreement or terms and conditions. Supply all terms for an international sale and not for service contracts, do not determine transfer of title, do not determine breach of contract or remedies, do not protect parties from their own risk of loss, do not cover goods before or after delivery. Incoterms clearly defines the respective obligations of the Sellers and Buyers to give notice, provide documents, provide information including security-related information, procure insurance, and pack the good properly and clear them for export and import and carry out all formalities for the export and import of the goods. 13. Which of these is the MOST likely effect of a weak United States dollar? A) Travel abroad will become more affordable for Americans. B) Foreigners will buy fewer United States goods and services. C) Foreign investment in United States businesses will decline. D) Goods imported from other countries will become more expensive. Show Answer Correct Answer: D) Goods imported from other countries will become more expensive. 14. Which trade group was formed to accelerate economic growth in Southeast Asia? A) EU. B) ASEAN. C) SADC. D) Mercosur. Show Answer Correct Answer: B) ASEAN. 15. ..... means that the seller delivers goods or services to the buyer without receiving cash, a bill of exchange or any other legally binding and enforceable undertaking at the time of delivery, and the buyer is expected to pay according to the terms of the sales contract and the seller's later invoice. A) Close account payment terms. B) Wide account payment terms. C) Open account payment terms. D) Narrow account payment terms. Show Answer Correct Answer: C) Open account payment terms. 16. What is the purpose of the Canadian Anti-Spam Legislation (CASL)? A) To regulate the sale of goods and provide general rules to govern transactions. B) To protect consumers during commercial transactions. C) To combat spam and other electronic threats. D) To maintain and encourage competition in Canada. Show Answer Correct Answer: C) To combat spam and other electronic threats. 17. What action that the WTO member may take to protect a specific domestic industry from an increase in imports of any product which is causing or threatening tp cause and injury to the industry? A) General provisions. B) Safeguard measures. C) Grey-are measures. D) Pre-existing measures. Show Answer Correct Answer: B) Safeguard measures. 18. NAFTA stands for A) North American Free Trade Agreement. B) North Americans For Tariff Association. C) Not A Freakin Tax! Amen. D) None of above. Show Answer Correct Answer: A) North American Free Trade Agreement. 19. Refers to the uncontested superiority of a country to produce a particular good better. A) Comparative Advantage. B) Balance of Trade. C) Absolute Advantage. D) Globalization. Show Answer Correct Answer: C) Absolute Advantage. 20. Which of these abbreviation is an INCOTERM? A) I have. B) CIF. C) FCA. D) All of them. Show Answer Correct Answer: D) All of them. 21. If a country has absolute advantage they can still benefit from specialization is international trade theory A) False. B) True. Show Answer Correct Answer: B) True. 22. Assume the inflation rate in Mexico is significantly higher than its trading partners. Which of the following will occur to the demand, supply, and international value of the Mexican peso? A) The demand will increase, the supply will increase, and the peso will depreciate. B) The demand will increase, the supply will decrease, and the peso will appreciate. C) The demand will decrease, the supply will increase, and the peso will appreciate. D) The demand will decrease, the supply will increase, and the peso will depreciate. E) The demand will decrease, the supply will decrease, and the peso will depreciate. Show Answer Correct Answer: D) The demand will decrease, the supply will increase, and the peso will depreciate. 23. Which are true ..... A) All are true. B) Military self-sufficiency preys on people's fear of another war and being unable to defend themselves, so they argue that the industry related to the military must be protected and maintained domestically. C) Diversification for stability looks at the need to have a well-rounded economy that is not too heavily invested in any one area that could be subject to collapse. (That is the proverbial "all of our eggs in one basket" argument.). D) New or infant industries argue that they need protection during the infancy stage to help them grow and become strong enough to compete on their own. This may be needed especially in a developing nation that is just moving into the world economy, but care must be taken not to prolong the support. Other options besides tariffs or quotas may work better to help the industry develop. Show Answer Correct Answer: A) All are true. 24. Which of the following is not a part ofconstructing international trade policy? A) Free Trade Policy. B) Autarky. C) Strategic Trade Policy. D) Protectionism. Show Answer Correct Answer: B) Autarky. 25. Which union sets-up the basic rules of trade and settles trade disputes between countries? A) NAFTA. B) EU. C) WTO. D) OPEC. Show Answer Correct Answer: C) WTO. 26. ASEAN is the same trading entity as AFTA A) No. B) Yes. Show Answer Correct Answer: A) No. 27. Countries that trade without tarrifs or quotas engage in ..... A) Far trade. B) Fair trade. C) No trade. D) Free trade. Show Answer Correct Answer: D) Free trade. 28. It shows that the goods meet the required standards prior to shipment. A) CERTIFICATION OF QUALITY. B) CERTIFICATE OF INSPECTION. C) CERTIFICATE OF ORIGIN. D) None of above. Show Answer Correct Answer: B) CERTIFICATE OF INSPECTION. 29. The imposition of a tariff on imported good by a small country results in net national welfare loss because of the A) Loss in consumer surplus exceeds gain in producer surplus. B) Efficiency losses due to production and consumption distortions. C) Loss in consumer surplus exceeds gain in government revenue. D) Efficiency loss due to production and consumption distortions exceed the terms of trade gain. Show Answer Correct Answer: B) Efficiency losses due to production and consumption distortions. 30. (adv) constantly, continuously A) Slightly. B) Downward. C) Upwards. D) Steadily. Show Answer Correct Answer: D) Steadily. ← 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