This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 81 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 81 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What goods are the tariffs levied on? A) Foreign products. B) Food. C) Agricultural products. D) Domestic products. Show Answer Correct Answer: A) Foreign products. 2. Computers made in China are used by students in Italy. A) Export. B) Import. Show Answer Correct Answer: B) Import. 3. Compute for the per capita GDP if:Total GDP-Php400, 000, 000Total population-100, 000, 000 (a) A) A Php4. B) Php40. C) Php400. D) None of above. Show Answer Correct Answer: A) A Php4. 4. This is an agreement which eliminates or greatly reduces tariffs on trade. A) European Union. B) Domestic trade. C) Common market. D) Free trade. Show Answer Correct Answer: D) Free trade. 5. Define the advising bank. A) An advising bank is a bank that elects to advise a Documentary Collection (DC) to the importer. The advising bank can choose whether or not to advise the DC if nominated by the issuing bank. If the bank chooses to advise the DC, it shall take reasonable care to check the authenticity of the DC. If the DC cannot be authenticated and the bank still chooses to advise the DC, it can do so but it must inform the importer that the authenticity of the DC cannot be established and also inform the bank from which the DC was received. If the bank elects not to advise the DC, it must also inform the collecting bank without delay. B) An advising bank is a bank that elects to advise a Documentary Cash (DC) to the beneficiary. The advising bank can choose whether or not to advise the DC if nominated by the collecting bank. If the bank chooses to advise the DC, it shall take reasonable care to check the authenticity of the DC. If the DC cannot be authenticated and the bank still chooses to advise the DC, it can do so but it must inform the beneficiary that the authenticity of the DC cannot be established and also inform the bank from which the DC was received. If the bank elects not to advise the DC, it must also inform the collecting bank without delay. C) An advising bank is a bank that elects to advise a Documentary Credit (DC) to the beneficiary. The advising bank can choose whether or not to advise the DC if nominated by the issuing bank. If the bank chooses to advise the DC, it shall take reasonable care to check the authenticity of the DC. If the DC cannot be authenticated and the bank still chooses to advise the DC, it can do so but it must inform the beneficiary that the authenticity of the DC cannot be established and also inform the bank from which the DC was received. If the bank elects not to advise the DC, it must also inform the issuing bank without delay. D) All the above. Show Answer Correct Answer: C) An advising bank is a bank that elects to advise a Documentary Credit (DC) to the beneficiary. The advising bank can choose whether or not to advise the DC if nominated by the issuing bank. If the bank chooses to advise the DC, it shall take reasonable care to check the authenticity of the DC. If the DC cannot be authenticated and the bank still chooses to advise the DC, it can do so but it must inform the beneficiary that the authenticity of the DC cannot be established and also inform the bank from which the DC was received. If the bank elects not to advise the DC, it must also inform the issuing bank without delay. 6. Who has the absolute advantage for capes? A) Avalon. B) Camelot. Show Answer Correct Answer: B) Camelot. 7. The government provides subsidies to domestic companies to create competitiveness for domestic goods A) Quota policy. B) Import prohibition policy. C) Tariff policy. D) Subsidy policy. Show Answer Correct Answer: D) Subsidy policy. 8. If a ..... for a product or services is more in a country than what it can domestically produce, then it goes for import. A) Supply. B) Demand. C) Quality. D) Price. Show Answer Correct Answer: B) Demand. 9. Most economists think that consumers benefit most from A) Free trade. B) Quotas. C) Protective tariffs. D) None of above. Show Answer Correct Answer: A) Free trade. 10. What do free trade agreements aim to achieve? A) To promote isolationism and reduce international trade. B) To create monopolies and restrict competition in the global market. C) To increase barriers to trade and limit economic cooperation between countries. D) To reduce barriers to trade and promote economic cooperation between countries. Show Answer Correct Answer: D) To reduce barriers to trade and promote economic cooperation between countries. 11. ..... is the government's principal agency for the promotion of the manufacturing and services sectors in Malaysia. A) MATRADE. B) TREES. C) WHAT. D) HDC. Show Answer Correct Answer: C) WHAT. 12. Refers to the ability of a nation to produce a good more efficiently than other nations because of its superior resources. A) Absolute. B) Absolute advantage principle. C) Absolute Disadvantage. D) Mercantilism. Show Answer Correct Answer: B) Absolute advantage principle. 13. According to the principle of comparative advantage, on what does a country's gains from international trade depend?A. Its level of money wage rates compared to its trading partners.B. It imposing a higher level of tariffs compared to those of its trading partners.C. Its greater productive capacity in some goods compared to its trading partners.D. Its lower opportunity cost in the production of some goods compared to its trading partners. A) C. B) D. C) B. D) A. Show Answer Correct Answer: B) D. 14. Why are most countries better off specializing in the production of particular goods, and then trading with other nations to obtain whatever else they need? A) People have limited resources to satisfyunlimited wants. B) Resources are not evenly distributed among countries. C) Greater investment of capital goodsincreases productivity. D) Transportation costs are lower than theywere a century ago. Show Answer Correct Answer: B) Resources are not evenly distributed among countries. 15. The measure of how much one nation's currency is worth in relation to another's A) Free trade. B) Exchange rate. C) Trade surplus. D) Balance of trade. Show Answer Correct Answer: B) Exchange rate. 16. Comparative advantage is the ability of one country to produce goods at a higher opportunity cost than other country. A) False. B) True. Show Answer Correct Answer: A) False. 17. Silk route is an example of long distance trade route connecting ..... with China. A) Libya. B) Rome. C) Cuba. D) America. Show Answer Correct Answer: B) Rome. 18. What country is NOT a part of NAFTA? A) Canada. B) USA. C) Mexico. D) England. Show Answer Correct Answer: D) England. 19. ..... means that somebody can be trusted to pay back money that is owed. A) Profitability. B) Creditworthiness. C) Liability. D) Loyalty. Show Answer Correct Answer: B) Creditworthiness. 20. It is a condition of a producer where it is better suited for production of one good than another good. Which of the following is suitable to describe the statement above? A) International Trade Theory. B) Tariffs. C) Comparative Advantage. D) Trade Barrier. Show Answer Correct Answer: C) Comparative Advantage. 21. A Malaysian exporter is allowed to issue invoice in Ringgit Malaysia to the importer in China and in return receives payment in Ringgit Malaysia from China. A) True. B) False. Show Answer Correct Answer: A) True. 22. If Canada has decided that they are going to place a tax on all shipments coming in from France, this would be an example of which trade barrier? A) Tariff. B) Subsidy. C) Embargo. D) Quota. Show Answer Correct Answer: A) Tariff. 23. Coffee is an example of a ..... A) Invisible export. B) Visible export. C) Visible import. D) Invisible import. Show Answer Correct Answer: C) Visible import. 24. Complete:I forgot my jacket at your house last night. Let me ..... after work and pick it up. A) The last thing I need is. B) Took it for a test drive. C) Swing by. D) You've got a deal. Show Answer Correct Answer: C) Swing by. 25. The concept that a nation should produce and export a limited assortment of goods for which it is particularly suited in order to remain profitable is called ..... A) Absolute advantage. B) Comparative advantage. C) Specialization. D) Tariffs. Show Answer Correct Answer: C) Specialization. 26. The purpose of ASEAN is to ..... A) Accelerate and encourage economic growth in SE Asia. B) Promote over fishing in SE Asia. C) Elect the presidents of SE Asia nations. D) Help save the environment of each nation in SE Asia. Show Answer Correct Answer: A) Accelerate and encourage economic growth in SE Asia. 27. Where did COVID-19 originate? A) Japan. B) WHO. C) Wuhan. D) New crown. Show Answer Correct Answer: C) Wuhan. 28. Which of the following is not a government campaign? A) Buy Malaysian goods campaign. B) Tax incentives. C) Free trade zone. D) Oembiayaan import. Show Answer Correct Answer: D) Oembiayaan import. 29. What does the Ricardian Model allows no role for differences among countries as a cause of trade? A) Distribution of Income. B) Specialization. C) Economies of Scale. D) Resources. Show Answer Correct Answer: D) Resources. 30. What is the tariff on cars imported into the EU from the UK? A) £1000. B) 5%. C) £2000. D) 10%. Show Answer Correct Answer: D) 10%. ← 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