This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 85 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 85 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What does export mean? A) Selling goods to another business. B) Selling goods to another country. C) Buying goods from another business. D) Buying goods from another country. Show Answer Correct Answer: B) Selling goods to another country. 2. What international agreement established the U.S. dollar as the world's primary reserve currency? A) Marshall Plan. B) NATO. C) Plaza Accords. D) Bretton Woods. Show Answer Correct Answer: D) Bretton Woods. 3. A country voluntarily limits the number of a product they ship to a country A) Quota. B) Protectionism. C) Tariff. D) Voluntary restriction. Show Answer Correct Answer: D) Voluntary restriction. 4. What are the potential disadvantages of using the WIPO Madrid System for international trademark protection? A) Limited geographical coverage, complex application process, dependency on home country registration, potential for refusal or cancellation of the trademark. B) High cost of application fees, lengthy registration process, language barriers. Show Answer Correct Answer: A) Limited geographical coverage, complex application process, dependency on home country registration, potential for refusal or cancellation of the trademark. 5. Larger export markets to sell your goods, if you are a country looking to do business. A) Pro. B) Con. Show Answer Correct Answer: A) Pro. 6. Trade between most nations is presently characterized by a certain degree of isolationism. A) FALSE. B) TRUE. Show Answer Correct Answer: A) FALSE. 7. Which of the following is not the background to the establishment of the ASEAN Economic Community (AEC) is..... A) The importance of the formation of a stable, prosperous and competitive ASEAN region. B) The need for ASEAN member countries to protect domestic producers. C) The ideals of fair and equitable economic growth. D) Reduce poverty and inequality between ASEAN member countries. Show Answer Correct Answer: B) The need for ASEAN member countries to protect domestic producers. 8. 'planning, organizing and managing operations in a company that supplies goods' A) Warehousing. B) Logistics. C) Managing. D) None of above. Show Answer Correct Answer: B) Logistics. 9. All of the following are true regarding international trade EXCEPT A) Countries experience a trade deficit when imports are greater than exports. B) Net exports will increase when that country's currency depreciates. C) An increase in exports will decrease a country's net exports. D) The balance of payment is a summary of a country's transactions with other countries. E) The primary components of the balance of payments are the current account and the financial account. Show Answer Correct Answer: C) An increase in exports will decrease a country's net exports. 10. A regulation that limits the number of items that can be sold in one country: A) Boycott. B) Tariff. C) Quota. D) Embargo. Show Answer Correct Answer: C) Quota. 11. Helps protect the economy and certain industries of a country from foreign competition A) Voluntary restriction. B) Quota. C) Tariff. D) Protectionism. Show Answer Correct Answer: D) Protectionism. 12. Fixed and floating are both types of what? A) Exchange Rates. B) Opportunity Costs. C) Trade Deficits. D) Trade Barriers. Show Answer Correct Answer: A) Exchange Rates. 13. The movement to a higher community indifferent curve because of ..... A) Incomplete specialization and trading in both countries. B) Economies of scale. C) Product differentiation. D) None of above. Show Answer Correct Answer: A) Incomplete specialization and trading in both countries. 14. Which group benefits when the US dollar depreciates (weak dollar)against other currencies? A) US citizens traveling in foreign countries. B) Foreign governments with US Treasury Bonds. C) Foreign citizens vacationing in the US. D) US citizens buying foreign goods and services. Show Answer Correct Answer: C) Foreign citizens vacationing in the US. 15. Bank transfers and bank cheques are often referred to as ....., in comparison with documentary payments as collections and letters of credit. A) Clear payments. B) Clean payments. C) Dark payments. D) Pure payments. Show Answer Correct Answer: B) Clean payments. 16. Which is NOT a regional trade agreement A) OPEC. B) EU. C) ASEAN. D) NAFTA. Show Answer Correct Answer: A) OPEC. 17. Which of the following is not the function of the World Bank? A) To provide loan to private investors belonging to member countries on its own guarantee. B) To ensure exchange rate stability. C) To provide long term loan to the member countries. D) To provides loan mainly for productive activities. Show Answer Correct Answer: B) To ensure exchange rate stability. 18. NAFTA was organized to benefit the economies of A) Peru, Bolivia, and Brazil. B) Korea, China, and Japan. C) Canada, Mexico, and the United States. D) France, Germany, and Spain. Show Answer Correct Answer: C) Canada, Mexico, and the United States. 19. Households do NOT A) Provide their time and skills or 'labour' (a resource) to Firms in exchange for income (wages). B) Pay taxes to the Government. C) Consume and purchase goods and services from Firms. D) Produce output (goods and services), which they sell to consumers for a price. So they receive revenue from the Household sector. Show Answer Correct Answer: D) Produce output (goods and services), which they sell to consumers for a price. So they receive revenue from the Household sector. 20. Creating specially designed products or promotions for certain countries or regions. A) Joint venture. B) Globalization. C) Multinational. D) Customization. Show Answer Correct Answer: D) Customization. 21. Global exchange agency which handles international trading A) Tariff. B) Free Trade. C) World Trade Organization. D) Free Trade Zone. Show Answer Correct Answer: C) World Trade Organization. 22. International trade arises due to similarities..... A) Geographical location. B) Importance. C) Natural resources. D) Ideology. Show Answer Correct Answer: B) Importance. 23. The MFN principle means that..... A) There can be no discriminatory treatment against developed countries. B) There can be no discrimination against new Member States. C) There can be no discrimination against developing countries. D) There can be no discrimination against fellow Member States. Show Answer Correct Answer: D) There can be no discrimination against fellow Member States. 24. The customs union exception was designed, in part, to accommodate the formation of the European Economic Community (EC) in ..... A) 1986. B) 1958. C) 1960. D) 1945. Show Answer Correct Answer: B) 1958. 25. Suppose an isolated economy has an equ ilibrium price that is less than the world price. If the economy opens to trade, then A) Consumer surplus will increase. B) The country will become an exporter. C) The world price will decrease to the economy's equilibrium price. D) Domestic consumers will increase consumption. E) The country will stop producing. Show Answer Correct Answer: B) The country will become an exporter. 26. United States, Canada, and Mexico are part of what trade agreement which ensures that most goods shipped among the three countries are not subject to tariffs or other barriers to international trade? A) NAFTA. B) GATT. C) WTO. D) AND. Show Answer Correct Answer: A) NAFTA. 27. The facility of home delivery of goods is generally provided by A) Agent. B) Wholesaler. C) Manufacturer. D) Retailer. Show Answer Correct Answer: D) Retailer. 28. A nation that imports more than it exports has a trade ..... A) Venture. B) Deficit. C) Problem. D) Surplus. Show Answer Correct Answer: B) Deficit. 29. What prompted the U.S. to change its trade strategy? A) The rapid rise of developing economies. B) The protection of developing economies. C) The shift from democratic to republican government. D) None of above. Show Answer Correct Answer: A) The rapid rise of developing economies. 30. What is standars? A) Tax on imports to protect businesses in the country, make the import more expensive, cost is passed to consumers. B) The price of one nation's currency in terms of another nation's currency. C) Rules about the quality of imported goods; if imported goods do not pass a nation's standard they will not be accepted. D) None of above. Show Answer Correct Answer: C) Rules about the quality of imported goods; if imported goods do not pass a nation's standard they will not be accepted. ← 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