This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 76 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 76 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Explanation why it is beneficial for a country to engage in what A) Mercantilism. B) Absolute Advantage. C) Comparative Advantage. D) International trade theory. Show Answer Correct Answer: D) International trade theory. 2. The price quoted to the buyer, including cost, insurance, and freight A) Bill of lading. B) FOB. C) CIF. D) C&H. Show Answer Correct Answer: C) CIF. 3. Choose the best answer about the relation between inflation rate and exchange rate A) Countries experiencing high inflation tend to also see their currencies weaken relative to other currencies. B) Lower inflation rate contribute to lower purchasing power. C) A country with a consistently lower inflation rate exhibits a depreciating currency value. D) An appreciation in the exchange rate will tend to increase inflation. Show Answer Correct Answer: A) Countries experiencing high inflation tend to also see their currencies weaken relative to other currencies. 4. Which unions help trade among a centralized continent? A) EU and NAFTA. B) NATO and UN. C) WTO & UN. D) OPEC & NATO. Show Answer Correct Answer: A) EU and NAFTA. 5. The development of skills in a specific kind of work; division of labor A) Absolute Advantage. B) Specialization. C) Opportunity Cost. D) Comparative Advantage. Show Answer Correct Answer: B) Specialization. 6. The exchange of goods and services are known as A) International Trade. B) Domestic Trade. C) Trade. D) None of these. Show Answer Correct Answer: C) Trade. 7. What is worth more? A) U.S. Dollar. B) Colombian Peso. Show Answer Correct Answer: A) U.S. Dollar. 8. Country X achieved a surplus in its Balance of Payments due to its earnings from invisible trade. Which item would have featured in this trade? A) Chemicals. B) Insurance services. C) Medical equipment. D) Tablet computers. Show Answer Correct Answer: B) Insurance services. 9. Person or business that provides parts or services to another company; also called vendor A) Distributor. B) Importer. C) Provide or supply. D) Provider or supplier. Show Answer Correct Answer: D) Provider or supplier. 10. The exchange of goods and services among nations. A) International trade. B) Imports. C) Exports. D) None of above. Show Answer Correct Answer: A) International trade. 11. If I am better at all types of production or I can simply produce more than you, I have the ..... in all forms of production. A) Developed nation. B) Specialization. C) Absolute advantage. D) Comparative advantage. Show Answer Correct Answer: C) Absolute advantage. 12. When the exchange rate rises what happens to the value of the currency against other currencies? A) It stays the same. B) It goes up. C) It goes down. D) None of above. Show Answer Correct Answer: B) It goes up. 13. International trade is part of ..... A) Export. B) Import. C) International Business. D) None of the above. Show Answer Correct Answer: C) International Business. 14. Which country is the largest EXPORTER? A) Germany. B) China. C) Canada. D) United States. Show Answer Correct Answer: B) China. 15. When a country sends its goods or services AWAY to other countries A) Unlimited trade. B) Export. C) Limited trade. D) Import. Show Answer Correct Answer: B) Export. 16. The product life-cycle theory, proposed by Bertil Ohlin, suggested that as products mature both the location of sales and the optimal production location will change affecting the flow and direction of trade. A) True. B) False. Show Answer Correct Answer: B) False. 17. Regulations limiting the amount of imports being sold in a certain country A) Embargoes. B) Quotas. C) To value. D) Specific Tariff. Show Answer Correct Answer: B) Quotas. 18. Tariff definition: A) Taxes are often used to restrict imported products. B) Taxes on goods that the State wants to limit exports. C) Tax on domestically produced products. D) Taxes that the state likes to collect. Show Answer Correct Answer: A) Taxes are often used to restrict imported products. 19. Advanced payment is seldom used as a means of securing payment. Name TWO (2) disadvantages of advanced payment to an importer. A) There is a negative impact on his cash flow. B) 1, 2, 3. C) The importer may not receive the goods he has ordered or to his specifications or on time. D) 1&2 only. E) Importer receive the goods before payment is made. Show Answer Correct Answer: D) 1&2 only. 20. Based on the following information, please list the transaction procedures of international trade:1. importer applies a letter of credit 2. exporter requests a negotiation from bank 3. importer and exporter sign a sale contract 4. importer entrusts a forwarding and clearing agent for delivery A) C 3, 1, 2, 4. B) A 1, 3, 2, 4. C) D 3, 2, 1, 4. D) B 2, 4, 1, 3. Show Answer Correct Answer: A) C 3, 1, 2, 4. 21. ..... trade is such type of International trade in case of which imported goods could be exported to a third country. A) Import. B) Export. C) Entrepot. D) None of the above. Show Answer Correct Answer: C) Entrepot. 22. What does a product life cycle consist of? A) Introduction, growth, maturity and decline. B) Growth, maturity, decline and death. C) Appearance, fashion, growth and escalation. D) Rise, change, development, death and rebirth. Show Answer Correct Answer: A) Introduction, growth, maturity and decline. 23. The ability of a country to produce more goods at a lower cost. A) Specialization. B) Comparative advantage. C) Luck. D) Genuine skill. Show Answer Correct Answer: B) Comparative advantage. 24. Which term refer to the exchange of goods and services between different countries? A) Good And service trade. B) International trade. C) Domestic trade. D) All the answers above. Show Answer Correct Answer: B) International trade. 25. Places regulation on international trade which makes sure markets function properly A) Protectionism. B) Growth in GDP. C) Free trade. D) Foreign direct investment. Show Answer Correct Answer: A) Protectionism. 26. International trade is useful for expanding the market for a product. This system is carried out by making a trade agreement with a country, which is a type of international trade ..... A) Consignment. B) Border Crossing. C) Package Deal. D) Overland Border Crossing. Show Answer Correct Answer: C) Package Deal. 27. What is a local content requirement (LCR)? A) A demand for a specific fraction of a good to be produced domestically. B) A bureaucratic rule that makes it difficult for imports to enter a country. C) A tax placed on the export of a good. D) A restriction on the quantity of a good that may be imported. Show Answer Correct Answer: A) A demand for a specific fraction of a good to be produced domestically. 28. Why is a weaker dollar bad for US importers and foreign exporters? A) Foreign importers feel like they could have more purchasing power. B) Weak dollars negatively impact non-industrialized countries. C) US importers feel like they get less for their money when exchanging. D) There is no negative effect of a weaker dollar. Show Answer Correct Answer: C) US importers feel like they get less for their money when exchanging. 29. Where is the headquater of WTO located? A) New York, United States. B) Hanoi, Vietnam. C) Tokyo, japan. D) Geneva, Switzerland. Show Answer Correct Answer: D) Geneva, Switzerland. 30. A discriminatory act carried out de facto is reflected in..... A) Enforced rules. B) Additional policies or procedures imposed. C) Rates and fees charged. D) Everything is wrong. Show Answer Correct Answer: B) Additional policies or procedures imposed. ← 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