This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 86 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 86 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A country experienced a deficit on its trade in goods, income and current transfers. Overall, it had a surplus on the current account of its balance of payments. What must this mean? A It had a floating exchange rate. B It had a surplus on its trade in services. C It had a surplus on the government's budget. D It was a developing country. A) D. B) C. C) A. D) B. Show Answer Correct Answer: D) B. 2. From an economic perspective, countries that export will benefit, among others ..... A) Increase self-confidence. B) Expand employment. C) Master the needs of society. D) Increase transportation costs. Show Answer Correct Answer: B) Expand employment. 3. How is an export subsidy by a large country different from an import quota by a large country? A) Unlike the welfare effects of an import quota, the welfare effects of an export subsidy are ambiguous. B) An export subsidy worsens terms of trade while an import quota improves them. C) They are not different The effects on income distribution are the same. D) An export subsidy improves terms of trade while an import quota worsens them. Show Answer Correct Answer: A) Unlike the welfare effects of an import quota, the welfare effects of an export subsidy are ambiguous. 4. Which of the following best defines a multinational corporation? A) A company that exports to many countries. B) A large company that imports from many countries. C) A company that operates in many different countries. D) A company that produces goods and services for a large market. Show Answer Correct Answer: C) A company that operates in many different countries. 5. What is the difference between imports and exports? A) Imports and exports are the same thing. B) Imports are goods and services sold, while exports are goods and services brought in. C) Imports are goods and services brought in, while exports are goods and services sold. D) Imports are only goods, while exports are only services. Show Answer Correct Answer: C) Imports are goods and services brought in, while exports are goods and services sold. 6. The international agency that administers trade agreements and settles trade disputes is: A) The World Trade Organization. B) The United Nations. C) The North American Free Trade Agreement. D) The General Agreement on the Tariffs and Trade. Show Answer Correct Answer: A) The World Trade Organization. 7. Country competitiveness affects an MNE's location selection and industry selection. For example, Nike chose China because it benefits from cheap labor and abundant resources needed for its production. A) False. B) True. Show Answer Correct Answer: B) True. 8. The currencies of different countries are bought and sold in the A) Foreign exchange market. B) Flexible rate market. C) Flexible exchange market. D) Foreign rate market. Show Answer Correct Answer: A) Foreign exchange market. 9. Product life cycle theory was introduced by A) David Ricardo. B) Michael Porter. C) Raymond Vernon. D) Adam Smith. Show Answer Correct Answer: C) Raymond Vernon. 10. Which one of the following policies is likely to be used to correct a deficit on the current account of the balance of payments A) Increase expenditure. B) Reduce productivity. C) Reduce expenditure. D) Appreciate the exchange rate. Show Answer Correct Answer: C) Reduce expenditure. 11. When a tariff is imposed on a good, A) Domestic producers lose. B) Domestic workers lose. C) Domestic consumers lose. D) Foreign producers gain. Show Answer Correct Answer: C) Domestic consumers lose. 12. Which of these items is an example of a visible export from Ireland A) Insurance policies. B) Pharmaceutical products. C) Niall Horan touring in England. D) Ed Sheeran touring in Ireland. Show Answer Correct Answer: B) Pharmaceutical products. 13. This ensures the imported products in the country are high quality? A) SPECIALIZATION. B) SAFETY. C) TRADE BARRIER. D) TARIFFS. Show Answer Correct Answer: B) SAFETY. 14. Below are the documents required for international trade, especially regarding Transport Documents, except..... A) Multimodal Transport Document. B) Export License. C) Bill of Lading (B/L). D) Airway Bill (AWB). Show Answer Correct Answer: B) Export License. 15. GPA stands for..... A) Georgia Ports Association. B) Georgia Port of Atlanta. C) Georgia Ports Authority. D) Georgia Port of America. Show Answer Correct Answer: C) Georgia Ports Authority. 16. What type of tariff is a 10% tariff on a pair of jeans? A) An ad valorem tariff. B) An unspecific tariff. C) A harmonised tariff. D) A specific tariff. Show Answer Correct Answer: A) An ad valorem tariff. 17. Indonesia cooperates in international trade with Japan. Indonesia exports liquefied natural gas products. While from Japan, Indonesia imports vehicles because they are cheaper than producing their own. The factors that underlie Indonesia's trade with Japan are ..... A) Differences in human resources. B) Differences in people's consumption tastes. C) Production cost savings/efficiency. D) Regional cooperation with neighboring countries. Show Answer Correct Answer: C) Production cost savings/efficiency. 18. What are the Protectionism's measures? A) Taxing and restrictions. B) Subsides, quotas, embargoes, anti-dumping duties and tariffs. C) Tariff, anti-dumping duties, taxes, subsidies and barriers. D) Embargoes, quotas, taxing and restrictions. Show Answer Correct Answer: B) Subsides, quotas, embargoes, anti-dumping duties and tariffs. 19. International trade is narrowly defined as A) The exchange of labor across national borders. B) The exchange of capital across national borders. C) The exchange of goods and services across national borders. D) The exchange of money across national borders. Show Answer Correct Answer: C) The exchange of goods and services across national borders. 20. One of the obstacles in international trade is..... A) The emergence of economic specialization. B) Science and technology transfer occurs. C) The emergence of a cultural shift in the country. D) Government policy. Show Answer Correct Answer: D) Government policy. 21. Government may limit the convertibility of currency to limit trade. Which of the following key policy area used by the government? A) Import quotas and VER. B) Currency controls. C) Local control requirements. D) None of above. Show Answer Correct Answer: B) Currency controls. 22. The theory of absolute advantage destroys the mercantilist idea that international trade is a ..... A) Zero-sum game. B) Negative-sum game. C) Positive-sum game. D) Win-win game. Show Answer Correct Answer: A) Zero-sum game. 23. What do U.S. fast food companies enter into in order to open franchises in foreign countries A) Trading blocks. B) Joint ventures. C) Trade agreements. D) Freight forwarding companies. Show Answer Correct Answer: B) Joint ventures. 24. What happens to the price of exports when the exchange rate falls? A) The price of exports rises. B) The price of exports falls. C) Prices stay the same. D) None of above. Show Answer Correct Answer: B) The price of exports falls. 25. Which country excels at exporting pineapples and coffee? A) South Korea. B) Bangladesh. C) Germany. D) Costa Rica. Show Answer Correct Answer: D) Costa Rica. 26. It means freedom of equality before the law. A) Protectionism. B) Liberalism. C) Liberalization. D) Protectionist. Show Answer Correct Answer: B) Liberalism. 27. Rates are determined freely and the rate will fluctuate day-to-day A) Fixed exchange rate. B) Floating exchange rate. C) Flexible exchange rate. D) Stubborn exchange rate. Show Answer Correct Answer: C) Flexible exchange rate. 28. This policies are bureaucratic rules designed to make it difficult for imports to enter a country. A) WTO Policies. B) Organizational Policies. C) Corporate Policies. D) Administrative Policies. Show Answer Correct Answer: D) Administrative Policies. 29. International trading of goods has conditions: A) Terms and conditions between the buyer and seller. B) INVOICE. C) Civil and commercial law. D) INCOTERMS. Show Answer Correct Answer: D) INCOTERMS. 30. Rate at which one currency may be converted into another; used when world trade occurs A) Embargo. B) Balance of Trade. C) Balance of Payments. D) Foreign Exchange Rate. Show Answer Correct Answer: D) Foreign Exchange Rate. ← 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