This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 73 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 73 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. How do tariffs affect domestic consumers over time? A) The consumers pay lower prices for both foreign and domestic goods. B) Domestic goods are more expensive, but foreign goods are cheaper. C) There is a wider variety of goods available. D) Foreign goods become more expensive in comparison to domestic goods. Show Answer Correct Answer: D) Foreign goods become more expensive in comparison to domestic goods. 2. A tariff whose purpose is to increase the cost of imported goods so that similar domestic goods can compete with the imports is called a(n) ..... tariff. A) Helpful. B) Price. C) Security. D) Protective. Show Answer Correct Answer: D) Protective. 3. Shrimp caught off the coast of Maine are flown to Asia. A) Export. B) Import. Show Answer Correct Answer: A) Export. 4. In 2010, China placed a tax on imported American poultry of up to 105.4%. This is an example of which trade barrier? A) Tariff. B) Market. C) Quota. D) Embargo. Show Answer Correct Answer: A) Tariff. 5. A large country experiencing import-biased economic growth will tend to experience ..... A) Immiserizing terms of trade. B) Deteriorating terms of trade. C) Improving terms of trade. D) Unchanged terms of trade. Show Answer Correct Answer: C) Improving terms of trade. 6. It refers to the ability to produce goods and services at a lower opportunity cost. A) Mercantilism. B) Absolute Advantage. C) Comparative Advantage. D) None of above. Show Answer Correct Answer: C) Comparative Advantage. 7. Which of the following is NOT an example of a government agency responsible for regulating competition in the United States economy? A) Federal Communications Commission. B) Securities and Exchange Commission. C) Federal Anti-Trust Commission. D) Federal Trade Commission. Show Answer Correct Answer: C) Federal Anti-Trust Commission. 8. Actual amount of goods and services that can be bought with a unit of currency A) Purchasing Power. B) Exchange Rate. C) Standard of Living. D) Standards. Show Answer Correct Answer: A) Purchasing Power. 9. Over 80% of the clothes that Americans buy have been manufactured in other countries. Why do American firms sell clothes made in other countries? A) Foreign-made clothes are more stylish then American-made clothes. B) Foreign-made clothes are of higher quality then American-made clothes. C) Foreign-made clothes cost less than similar American-made clothes. D) Our government subsidizes imported clothing. Show Answer Correct Answer: B) Foreign-made clothes are of higher quality then American-made clothes. 10. What does the financial account of the balance of payments record? A) The sale and purchase of goods and services. B) Investment income earned abroad. C) Other transfers like donations and foreign aid. D) All of the above. Show Answer Correct Answer: B) Investment income earned abroad. 11. North American Free Trade Agreement (NAFTA) involves trading with which countries: A) US, Mexico, and Canada. B) US, Toyko, and China. C) US, Japan, and China. D) None of above. Show Answer Correct Answer: A) US, Mexico, and Canada. 12. It's a place where goods are stored after shipping but before the payment of duties on those goods. A) STORAGE. B) BONDED WAREHOUSE. C) CHAMBER. D) None of above. Show Answer Correct Answer: B) BONDED WAREHOUSE. 13. What happens to imports and exports when the exchange rate appreciates? A) Imports become cheaper, exports become more expensive. B) Imports become more expensive, exports become cheaper. C) Both imports and exports become cheaper. D) Both imports and exports become more expensive. Show Answer Correct Answer: A) Imports become cheaper, exports become more expensive. 14. What is the primary reason behind countries engaging in international trade? A) To reduce domestic production costs. B) To achieve self-sufficiency. C) To increase government control over the economy. D) To benefit from specialization and comparative advantage. Show Answer Correct Answer: D) To benefit from specialization and comparative advantage. 15. The small jet ..... between Kuala Lumpur and Singapore nearly every two hours A) Intrepid. B) Haggle. C) Shuttles. D) Extract. Show Answer Correct Answer: C) Shuttles. 16. The concentration of production on types of goods or services that have high productivity and efficiency by a country is called..... A) Creative economy. B) Specialization. C) Industrialization. D) Creative industry. Show Answer Correct Answer: B) Specialization. 17. It is the purchase and receipt of goods and services from another country. It involves bringing products from foreign markets into a domestic market. A) Import. B) Export. Show Answer Correct Answer: A) Import. 18. Which of the following is a situation in which trade is advantageous? A) Two countries are isolated. B) Two countries produce the same goods for the same costs. C) Two countries have the same markets. D) Two countries produce different goods for different costs. Show Answer Correct Answer: D) Two countries produce different goods for different costs. 19. China ..... a lot of steel. A) Domestic. B) Surplus. C) Exports. D) Percent. Show Answer Correct Answer: C) Exports. 20. Explain the role of broadband internet in international integration. A) Broadband internet enables fast data transmission, which enhances global connectivity. B) Broadband internet is only used for domestic communication. C) Broadband internet has not affected international integration. D) Broadband internet has slowed down data transmission across borders. Show Answer Correct Answer: A) Broadband internet enables fast data transmission, which enhances global connectivity. 21. It is assumed that when the country starts to trade, then the domestic price will either rise or fall to the world price level. A) True. B) False. Show Answer Correct Answer: A) True. 22. What is "Glocalisation" ? A) A product or service that is developed and distributed globally, but is also adjusted to accommodate the user or consumer in a local market. B) Global market research. C) Global research and development. D) Global technological human resource techniques. Show Answer Correct Answer: A) A product or service that is developed and distributed globally, but is also adjusted to accommodate the user or consumer in a local market. 23. The articles of the General Agreement on Tariffs and Trade (GATT) were originally agreed on ..... and subsequently, with some revisions in ..... A) 1925, 1945. B) 1889, 1895. C) 1947, 1994. D) 1870, 1890. Show Answer Correct Answer: C) 1947, 1994. 24. ..... protects domestic industries against foreign competition by means of tariffs, subsidies, import quotas, slow immigration, or other restrictions or handicaps placed on the imports of foreign competitors A) Free trade. B) Exchange rate. C) Protectionist policy. D) Export. Show Answer Correct Answer: C) Protectionist policy. 25. Provide the funding of small and medium-sized enterprises, and represents a major function of the general business finance market. A) SME'S BANK. B) WORLD BANK. C) Malaysian Trade Bank. D) MIDF. Show Answer Correct Answer: A) SME'S BANK. 26. What is the sale of products in foreign markets at prices below the minimum level necessary to make a profit called? A) Nontariff barriers. B) Tariff. C) Most-favored nation. D) Dumping. Show Answer Correct Answer: D) Dumping. 27. What determines the prices of internationally traded goods? A) Supply and Demand. B) Countries and Government. C) Seller and Buyer. D) Capital and Sales. Show Answer Correct Answer: A) Supply and Demand. 28. Which of the following is a reason for exporting A) ACCESS TO NATURAL RESOURCES. B) INTENSE COMPETITION. C) CHOICE AND VARIETY. D) SURVIVAL. Show Answer Correct Answer: D) SURVIVAL. 29. It refers to the sale and delivery of an intangible product called service, between producer and consumer. A) Trade in Service. B) MAY. C) Service Trade. D) Cross-Border trade. Show Answer Correct Answer: A) Trade in Service. 30. Permitting another party in a foreign country to produce and sell goods under your trademarks, patents or copyrights in exchange of fee is known as ..... A) Import. B) Franchising. C) Export. D) Licensing. Show Answer Correct Answer: D) Licensing. ← 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