This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 83 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 83 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. All governments support trade liberalisation and the removal of trade barriers A) True. B) False. Show Answer Correct Answer: B) False. 2. Producer-Wholesaler-retailer-consumer is the example of A) Wholesale trade. B) Indirect trade. C) Direct trade. D) Retail trade. Show Answer Correct Answer: C) Direct trade. 3. The trade theory that first indicated importance of specialization in production and division of labor is based on the idea of theory of ..... which is developed first by Adam Smith in his famous book, The Wealth of Nations, published in 1776 A) Absolute advantage. B) Relative advantage. C) Equal advantage. D) Comparative advantage. Show Answer Correct Answer: A) Absolute advantage. 4. Good and services produced at home and sold in other countries A) Exports. B) Globalization. C) Specialization. D) Imports. Show Answer Correct Answer: A) Exports. 5. What form of currency is accepted throughout Europe and is backed by a union? A) Euro. B) Lira. C) Dollar. D) Pound. Show Answer Correct Answer: A) Euro. 6. Protectionists justify high tariffs because they A) Stimulate economic growth. B) Help the balance of payments. C) Protect foreign jobs. D) Send money overseas. Show Answer Correct Answer: B) Help the balance of payments. 7. Same meaning as 'slight' A) Slip. B) Spectacular. C) Modest. D) Extraordinary. Show Answer Correct Answer: C) Modest. 8. Definition of Bluff A) Careful about what you say so that you don't upset or embarrass anyone. B) Pretend something in order to achieve what you want. C) Delay (until a later date). D) Let the other person have something in order to achieve an agreement. Show Answer Correct Answer: B) Pretend something in order to achieve what you want. 9. What are the terms of the transport insurance contract? A) 3. B) 4. C) 5. D) 2. Show Answer Correct Answer: A) 3. 10. Developing struggling governments, environmental protection and macroeconomic stabilization. A) World Bank. B) World Trade Organization. C) International Monetary Fund. D) None of above. Show Answer Correct Answer: A) World Bank. 11. Commercial risk also called ....., is often defined as the risk of the buyer going into bankruptcy or being in any other way incapable of fulfilling their contractual obligations. A) Product risk. B) Adverse business risk. C) Purchaser risk. D) Currency risk. Show Answer Correct Answer: C) Purchaser risk. 12. The firm makes a profit so long as P is greater than C, and its profit will be greater the lower C is relative to P A) False. B) True. Show Answer Correct Answer: B) True. 13. The amount of demand that is greater than the supply on the world market will encourage the exporting country ..... A) Raise the price of goods. B) Lower the price of goods. C) Withhold delivery of goods. D) Cancel the purchase of goods. Show Answer Correct Answer: A) Raise the price of goods. 14. What does international trade mean? A) Trading with interns. B) Importing and/or exporting goods to trade. C) Trading in multiple countries. D) Trading only in the UK. Show Answer Correct Answer: B) Importing and/or exporting goods to trade. 15. Which country withdraws out of TPP? A) USA. B) Vietnam. C) Chile. D) Australia. Show Answer Correct Answer: A) USA. 16. In recent years international trade has been A) At a standstill. B) Flourishing. C) Decreasing. D) Nonexistent. Show Answer Correct Answer: B) Flourishing. 17. America has free trade. A) False. B) True. Show Answer Correct Answer: A) False. 18. What does FDI stand for? A) Foreign Investment Direct. B) Foreign Direct Investment. C) Foreign Direct Income. D) Foreign Domestic Investment. Show Answer Correct Answer: B) Foreign Direct Investment. 19. What does CITES stand for? A) Conservation of International Trees and Endangered Species. B) Conservation on International Trade in Endangered Species of Wild Fauna and Flora. C) Convention on International Trade in Endangered Species of Wild Fauna and Flora. D) None of above. Show Answer Correct Answer: C) Convention on International Trade in Endangered Species of Wild Fauna and Flora. 20. In Documentary Collection tansactions, the "Remitting Bank" is located where? A) Country of the Supplier. B) Country of the Buyer. C) None of the Above. D) None of above. Show Answer Correct Answer: A) Country of the Supplier. 21. Which of the following is an argument for restricting trade? A) Trade restrictions are necessary for increasing purchasing power. B) Trade restrictions make Americans better off. C) Trade restrictions are necessary for economic growth. D) Trade restrictions increase economic efficiency. Show Answer Correct Answer: D) Trade restrictions increase economic efficiency. 22. What is the value of International Trade? A) Because if you can trade with other countries that have a comparative advantage than make it on your own. B) Because everyone likes it. C) Because it is better to make it in your own country and sell it to others at a better price. D) None of above. Show Answer Correct Answer: A) Because if you can trade with other countries that have a comparative advantage than make it on your own. 23. The product life cycle describes the stages a really new product idea goes through from beginning to end. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 24. Use the information to answer the following question. Because Mexico specializes in the production of silver and Canada leads the world in the production of fishing nets, the two countries could engage in trade that benefits both parties. What is this law of economics called? A) Comparative advantage. B) Absolute advantage. C) Supply and demand. D) Parallel consumption. Show Answer Correct Answer: A) Comparative advantage. 25. To lead in the in the promotion and dissemination of productivity related information and issue A) HDC. B) MPC. C) ASEAN. D) MAY. Show Answer Correct Answer: B) MPC. 26. Economic Trade in which of the following geographies suffered the steepest decline. A) USA. B) Europe. C) South Korea. D) Japan. Show Answer Correct Answer: B) Europe. 27. Headquarter of CIS is ..... A) Minsk, Belarus. B) Jakarta, Indonesia. C) Kathmandu, Nepal. D) Vienna, Austria. Show Answer Correct Answer: A) Minsk, Belarus. 28. What is the impact of trade barriers on consumers? A) Higher prices and limited choices. B) Decreased quality and increased availability. C) No impact on prices or choices. D) Lower prices and more choices. Show Answer Correct Answer: A) Higher prices and limited choices. 29. If you are the director of the purchasing department of the large supermarket in Dreamtime, and you purchase a batch of meat from overseas on behalf of the supermarket and put it for sale in the supermarket, does your purchase belong to international trade? A) Yes. B) No. Show Answer Correct Answer: A) Yes. 30. Many different cultures are lost as the world begins to interact more and more. A) Con. B) Pro. Show Answer Correct Answer: A) Con. ← 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