This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 71 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 71 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. International trade is the exchange of goods and services inside a country. A) True. B) False. Show Answer Correct Answer: B) False. 2. Classical mercantilism is the most offensive form of mercantilism because A) It promotes international trade through colonialization. B) It promotes international trade through strengthening of local industries. C) It promotes the use of a more subtle forms of protectionist policy in international trade. D) It promotes heavy investment in foreign lands. Show Answer Correct Answer: A) It promotes international trade through colonialization. 3. Countries get involved in International Trade A) To import goods they cannot produce for themselves. B) To export surplus produce they cannot sell on the domestic market. C) To develop stronger international relations with other countries. D) All of the above. E) None of the above. Show Answer Correct Answer: D) All of the above. 4. The price paid for the use of borrowed money. A) Interest. B) Interest. C) Interest. D) Interrest. Show Answer Correct Answer: A) Interest. 5. Stage 1 in product cycle model is know as new product phase and only produced and consumed only in the innovating country. A) False. B) True. Show Answer Correct Answer: B) True. 6. All business activities needed to create, ship, and sell goods and services across national borders are considered to be A) Domestic business. B) International business. C) Global dependency. D) None of these. Show Answer Correct Answer: B) International business. 7. ..... includes both visible and invisible items. A) Balance of payment. B) Balance of Trade. C) Foreign Trade. D) None of these. Show Answer Correct Answer: A) Balance of payment. 8. When countries make intensive use of locally scarce factors, they should ..... that product. A) Specialize. B) Export. C) Produce. D) Import. Show Answer Correct Answer: D) Import. 9. When our exports exceed our imports, we have a..... A) Free trader. B) Accord commercial. C) Trade balance deficit. D) Trade surplus. Show Answer Correct Answer: D) Trade surplus. 10. In 2012, the United States Commerce Department announced that it would impose a tax ranging from 2.9% to 4.7% on Chinese made solar panels. A) Tariff. B) Embargo. C) Quota. D) None of above. Show Answer Correct Answer: A) Tariff. 11. Superior profitability goes to those firms that can create superior value. A) True. B) False. Show Answer Correct Answer: A) True. 12. Who is the author of the article? A) Michelle Bruno. B) Michael Bruno. C) Mike Bruno. D) None of above. Show Answer Correct Answer: A) Michelle Bruno. 13. The difference between the value of goods and services exported and imported is know as A) Balance of trade. B) Surplus. C) Trade imbalance. D) Deficit. Show Answer Correct Answer: A) Balance of trade. 14. You are a business consultant specializing in International Trade. After your presentation, you opened the floor for questions and you received the following queries. How would you answer the following questions? Compare between international trade and local trade. A) Doing business internationally is not the same as doing business at home. There are new skills to learn and new knowledge to acquire about the country you will be going into. There will be different laws and regulations, the different customer buying habits, marketing strategies and materials to appeal to the new country. B) No two cultures are the same and understanding both the social and business culture in another country is the first key to success. Culture defines everything a society does, from its business practices, to its response to advertising and marketing, to negotiating sales. C) The level of competition you will experience in foreign markets is likely to be more dynamic and complex than you experience in domestic markets. D) 1 & 3. E) All the above. Show Answer Correct Answer: E) All the above. 15. Which of the following is the key sources of monopolistic advantage? A) Patents. B) Sole ownership of other assets. C) Proprietary knowledge. D) All of the above. Show Answer Correct Answer: D) All of the above. 16. This approach was raise to primarily demonstrate that they offer inappropriate guidelines for ethical decision making in a multinational enterprise. A) Strawmen. B) Utilitarian and Kantian Ethics. C) Right Theories. D) None of above. Show Answer Correct Answer: A) Strawmen. 17. Internal economies of scale A) Cannot form the basis for international trade. B) May be associated with a perfectly competitive industry. C) Are associated only with sophisticated products such as aircraft. D) Cannot be associated with a perfectly competitive industry. Show Answer Correct Answer: D) Cannot be associated with a perfectly competitive industry. 18. The following are the Forms of the Travel Association that are based on the "Education & Training needs of the Industry." Which is TRUE? A) Include professional bodies which are primarily concerned with the training and educational standards of personnel working in hotels and travel agencies. B) Negotiation of travel agency commission rates with IATA. C) These organisations deal with all the aspects of tourism. D) Dealing with tourism and sharing a common interest in the promotion and development or marketing of a specific, tourism, geographical area, or region. Show Answer Correct Answer: A) Include professional bodies which are primarily concerned with the training and educational standards of personnel working in hotels and travel agencies. 19. What are "remittances?" A) Money that an immigrant sends back home to his family in his native country. B) Driver's license. C) Person who flees a country due to war. D) Legal documents to show you own a car. Show Answer Correct Answer: A) Money that an immigrant sends back home to his family in his native country. 20. Goods and services produced in other countries and sold domestically. A) Export. B) Import. Show Answer Correct Answer: B) Import. 21. Indonesia's victory in the trade dispute with the United States at the WTO in 2014 was related to product exports..... A) Textile. B) Fishery. C) Furniture. D) Cigarette. Show Answer Correct Answer: D) Cigarette. 22. How do exports contribute to employment and income in Australia? A) Exports have no impact on employment and income. B) Exports lead to decreased employment and income. C) Exports create more employment and income. D) Exports have an unpredictable impact on employment and income. Show Answer Correct Answer: C) Exports create more employment and income. 23. Which headline would ASEAN be MOST LIKELY to oppose? A) "Germany increasing tariffs on French goods". B) "Vietnam to remove quotas on Malaysia". C) "Philippines considering subsidies to fishing industry". D) "Canada favors trade with Mexico over the US". Show Answer Correct Answer: C) "Philippines considering subsidies to fishing industry". 24. Which element can not move across bounder in international economic? A) Labor. B) Capital. C) Technology. D) Raw material and natural resources. Show Answer Correct Answer: D) Raw material and natural resources. 25. Unit of metal or paper money used in exchange for goods or services A) Foreign Exchange. B) Trade Failure. C) International Finance. D) Currency. Show Answer Correct Answer: D) Currency. 26. Why does a country with a trade deficit need to sell assets? A) To reduce its trade deficit. B) To support domestic industries. C) To increase its savings rate. D) To pay for imports. Show Answer Correct Answer: D) To pay for imports. 27. Between 2005 and 2010, a country's import prices rose by 25% and its terms of trade rose to 120 (2005 = 100). Which change has there been in the country's export prices?A-5% B 12.5% C 45% D 50% A) D. B) C. C) A. D) B. Show Answer Correct Answer: A) D. 28. It is calculated by adding personal consumption, expenditures, government expenditures, private investment, private domestic investment, net export and all income earned by residents in foreign countries minus income earned by foreign residents within the domestic economy A) GNP & GDP. B) GNI. C) GNP. D) GDP. Show Answer Correct Answer: C) GNP. 29. Which of the following is the main achievements of Uruguay Round? A) TRIMS and TRIPS. B) GATT. C) Towards. D) GDP. Show Answer Correct Answer: A) TRIMS and TRIPS. 30. Which term is used to describe the comparison of the amount of foreign currency taken into a country versus the amount of domestic currency paid out? A) Balance of trade. B) Payment exchange rate. C) Foreign exchange rate. D) Balance of payments. Show Answer Correct Answer: D) Balance of payments. ← 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