This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 80 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 80 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An action in determining the price of goods that differs from one country to another A) Free trade political policy. B) Dumping policy. C) Price discrimination policy. D) Premium policy. Show Answer Correct Answer: C) Price discrimination policy. 2. A Japanese car manufacturer decided to produce its cars in a factory in Europe. What would not be a reason why they might have chosen to do this? A cheaper wage costs in Europe B the availability of raw materials C to gain external economies from skilled labour in Europe D to increase Japanese self-sufficiency A) A. B) D. C) C. D) B. Show Answer Correct Answer: B) D. 3. The total number of goods that can be imported within a certain period A) Subsidy. B) Quota. C) Rates. D) Import ban. Show Answer Correct Answer: B) Quota. 4. International Trade is as complicated as domestic trade. A) YES. B) NO. Show Answer Correct Answer: B) NO. 5. Most of the world's great ports are classified as ..... A) Out Ports. B) Commercial Ports. C) Industrial Ports. D) Comprehensive Ports. Show Answer Correct Answer: D) Comprehensive Ports. 6. Trade in services is called? A) Invisible trade. B) Visible trade. Show Answer Correct Answer: A) Invisible trade. 7. Why do firms try to avoid competition? A) They can set prices higher and earn greater profits. B) They can reduce production costs and earn higher profits. C) They can avoid taxes and thereby earn higher profits. D) They will have more money to advertise their products. Show Answer Correct Answer: A) They can set prices higher and earn greater profits. 8. Viet Nam's export rank in 2019? A) 19. B) 18. C) 21. D) 24. Show Answer Correct Answer: C) 21. 9. What is a 'Hinterland'? A) The places to which a port supplies its goods. B) Area of influence of a port, city or industry. C) The places from where a port receives its goods. D) The neighbouring places to a port. Show Answer Correct Answer: B) Area of influence of a port, city or industry. 10. Foreign currency for exporting a commodity A) Foreign exchange. B) Dividend. C) Dollar. D) None of above. Show Answer Correct Answer: A) Foreign exchange. 11. Savannah is home to ..... A) The Georgia Consulate. B) The second largest port in the world. C) Hartsfield-Jackson International Airport. D) The fourth largest port in the United States. Show Answer Correct Answer: D) The fourth largest port in the United States. 12. The rules, Laws and policies, taxation system, etc., of multiple countries are applicable to the ..... A) International trade. B) Internal trade. C) Both of the above. D) None of the above. Show Answer Correct Answer: A) International trade. 13. WHAT IS THE LETTER KNOWN AS ON WHICH THE IMPORTER DESCRIBES THE DETAILS OF THE ORDER A) L/C. B) OGL. C) INDENT. D) INPUT. Show Answer Correct Answer: C) INDENT. 14. Mechanic A can change a tire in 1 hour and change a sparkplug in 2 hours. Mechanic B can change a tire in 0.5 hours and change a sparkplug in 0.25 hours. Who has the comparative advantage in changing sparkplugs? A) Mechanic B. B) Mechanic A. C) Both mechanics. D) Need more information. Show Answer Correct Answer: A) Mechanic B. 15. A standard for a product quality and safety, import licensing requirements or bureaucratic procedures for importing a product. A) Embargo. B) Tariff. C) Trade wars. D) Non-tariff barrier. Show Answer Correct Answer: D) Non-tariff barrier. 16. Which economic system uses the "invisible hand theory" ? A) A traditional economy. B) A command economy. C) A market economy. D) A communist economy. Show Answer Correct Answer: C) A market economy. 17. Revenue tariffs are levied to do which of the following? A) Increase imports. B) Lower exports. C) Raise money. D) Protect domestic producers. Show Answer Correct Answer: C) Raise money. 18. Purchasing goods from a foreign country is called A) RE-EXPORT. B) IMPORT. C) EXPORT. D) ENTREPOT. Show Answer Correct Answer: B) IMPORT. 19. Packing goods in small, separable units A) Cross-docking. B) Order picking. C) Break-bulk. D) None of above. Show Answer Correct Answer: C) Break-bulk. 20. What are the advantages of trade? A) Competition for domestic businesses. B) Unemployment. C) Poverty. D) Lower prices and increased choice for consumers. Show Answer Correct Answer: D) Lower prices and increased choice for consumers. 21. The dynamic increasing returns to scale exist if average costs fall as cumulative output over time rises A) True. B) False. Show Answer Correct Answer: A) True. 22. Goods or merchandise A) Goods. B) Well. C) Fine. D) Costs. Show Answer Correct Answer: A) Goods. 23. Trade between two countries is known as ..... A) External. B) Internal. C) Inter-regional. D) None of the above. Show Answer Correct Answer: A) External. 24. According to the strategic trade policy argument: A) Government intervention is not required cause firm can borrow money from the capital markets to finance the requiredinvestments. B) Selling goods in a foreign market at below their fair price is legally and ethically justified. C) Government support can help domestic firms overcome the first-mover advantages enjoyed by foreign competitors. D) A government should use subsidies to support promising firms. Show Answer Correct Answer: C) Government support can help domestic firms overcome the first-mover advantages enjoyed by foreign competitors. 25. A business enterprise that a domestic company and a foreign company undertake together. A) Infrastructure. B) Mini-national. C) Globalization. D) Joint venture. Show Answer Correct Answer: D) Joint venture. 26. ..... measure of how many people live in a specific area. A) Birth rate. B) Migration. C) Population density. D) Unemployment. Show Answer Correct Answer: C) Population density. 27. Canada is our largest trading partner given the fact that we share a lengthy border that facilitates trade. A) False. B) True. Show Answer Correct Answer: B) True. 28. This document is used when sending goods by sea: A) Consular Invoice. B) Certificate of Origin. C) Bill of Lading. D) Airway Bill. Show Answer Correct Answer: C) Bill of Lading. 29. Nike only releases certain types of Jordans on Christmas and Thanksgiving Day each year. Due to high consumer demand, there is only a limited amount.What is this an example of? A) Tariff. B) Quota. C) Embargo. D) None of above. Show Answer Correct Answer: B) Quota. 30. A stop or ban on imported goods from a country is ..... A) A tariff. B) A quota. C) An embargo. D) None of above. Show Answer Correct Answer: C) An embargo. ← 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