This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 88 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 88 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What determines what goods a country will proudce? A) Its president. B) Its resources. C) Its congress. D) None of above. Show Answer Correct Answer: B) Its resources. 2. Under the slave trade system dutch, spaniards and british captured ..... people and transported them to newly discovered ..... A) African and America. B) African and Australia. C) American and Antartica. D) Indian and Antarctica. Show Answer Correct Answer: A) African and America. 3. From the question, what country's national flag is this? A) Indonesia. B) England. C) Singapore. D) Poland. Show Answer Correct Answer: C) Singapore. 4. Free traders often argue that new or emerging industries should be protected from foreign competition forever. A) True. B) False. Show Answer Correct Answer: B) False. 5. If nations limit imports of clothing, who will benefit? A) Department stores who sell clothing. B) Domestic Consumers of clothing. C) Domestic producers of clothing. D) Foreign Producers of clothing. Show Answer Correct Answer: C) Domestic producers of clothing. 6. International trade means A) One of the pillars of the world thrift. B) One of the pillars of the world abridgement. C) One of the pillars of the world. D) One of the pillars of the world economy. Show Answer Correct Answer: D) One of the pillars of the world economy. 7. The benefits of interstate trade for consumers are ..... A) Get to know new production technology. B) Have a large selection of goods. C) Friendship between countries. D) Earn profits through specialization. Show Answer Correct Answer: B) Have a large selection of goods. 8. What is the main purpose of international trade? A) To make both parties better off. B) To benefit the exporting country. C) To eliminate competition between countries. D) To increase government revenue. Show Answer Correct Answer: A) To make both parties better off. 9. You are the CEO of a company. You want to develop overseas markets and sell products abroad, but you find that the destination country will impose a very high fee on imported products from other countries. In order to avoid this fee, you choose to directly If you open a branch overseas and directly invest in production and sales locally, is this an international trade act? A) In most cases, yes. B) In most cases, no. Show Answer Correct Answer: B) In most cases, no. 10. It is when a company invests resources in business activities outside its home country A) BUSINESS OUTSIDE. B) INTERNATIONAL INVESTMENT. C) INTERNATIONALIZE. D) INTERNATIONAL COMPANY. Show Answer Correct Answer: B) INTERNATIONAL INVESTMENT. 11. A situation that occurs when individuals or businesses produce a narrow rand of products A) Tariff. B) Quota. C) Specialization. D) None of above. Show Answer Correct Answer: C) Specialization. 12. Kantian ethics are based on the philosophy of Immanuel Kant. A) True. B) False. Show Answer Correct Answer: A) True. 13. A government restriction on the number of cameras that can be imported from China each year is an example of an import quota. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 14. Represents a distinct advantage in skills, technology, and/or capital assets that yields differentiated product offerings and/or cost-competitive homogeneous products. A) Comparative advantage. B) Natural advantage. C) Acquired advantage. D) Absolute Advantage. Show Answer Correct Answer: C) Acquired advantage. 15. All of the following are arguments for trade restriction EXCEPT ..... A) National security. B) Cheap labor. C) Infant industries. D) Specialization. Show Answer Correct Answer: D) Specialization. 16. Modern theory of international trade is based on the views of A) Robbins and Ricardo. B) Adam Smith and Marshall. C) Saleem and Kareem. D) Heckscher and Ohlin. Show Answer Correct Answer: D) Heckscher and Ohlin. 17. Fixed Exchange Rate is: A) Always fluctuating. B) Tied to the value of another currency. C) A type of protective tariff. D) Determined by market forces. Show Answer Correct Answer: B) Tied to the value of another currency. 18. A country has a comparative advantage in trade when it is able to produce a product relatively more efficiently. A) False. B) True. Show Answer Correct Answer: B) True. 19. Which of the following is NOT in the balance of payments A) Financial account. B) Capital account. C) Savings account. D) Current account. Show Answer Correct Answer: C) Savings account. 20. A government's establishment of economic policies that systematically restrict imports in order to protect domestic industries. A) Mini-national. B) Adaptation. C) Protectionism. D) Multinational. Show Answer Correct Answer: C) Protectionism. 21. When a production subsidy is granted on a good, A) Government budget gains. B) Domestic workers lose. C) Domestic consumers are unaffected. D) Domestic consumers gain. Show Answer Correct Answer: C) Domestic consumers are unaffected. 22. When a country is "very open to trade", it means A) Trade volume is very high. B) The country has many trade partners. C) Trade-to-GDP ratio is very high. D) The country trades many different types of goods and services. Show Answer Correct Answer: C) Trade-to-GDP ratio is very high. 23. What has international trade created? A) All of the above. B) A tightly interconnected world economy. C) More access to cheaper and better goods and services. D) Millions of jobs. Show Answer Correct Answer: A) All of the above. 24. What is visible trade? A) Trade in goods. B) Trade in services. Show Answer Correct Answer: A) Trade in goods. 25. What is the value of international trade for a business considering to produce all their products themselves or to trade with countries with a comparative advantage? A) Support domestic industries. B) Make everything on their own. C) Reduce unemployment in their business. D) Trade with countries that have a comparative advantage. Show Answer Correct Answer: D) Trade with countries that have a comparative advantage. 26. According to the law of comparative advantage, a nation should ..... A) Specialize and export goods with the lowest average cost. B) Specialize and export goods with the lowest production cost. C) Specialize and export goods with the highest opportunity cost. D) Specialize and export goods with the lowest opportunity cost. Show Answer Correct Answer: D) Specialize and export goods with the lowest opportunity cost. 27. Limit placed on imported goods. A) Tariff. B) Quota. C) Subsidy. D) Import. Show Answer Correct Answer: B) Quota. 28. In 2013, the European Union (EU) levied a 48% tariff on low-priced Chinese solar panels because the low price was the result of subsidies from the Chinese government.Which argument for protectionism was the EU using? A) The anti-dumping argument. B) The strategic industry argument. C) The sunset industry argument. D) The infant industry argument. Show Answer Correct Answer: A) The anti-dumping argument. 29. Currencies remain at a fixed rate and the value changes only when there is an economic situation A) Subsidies. B) Fixed Exchange Rate. C) Exchange Control. D) Boycotts. Show Answer Correct Answer: B) Fixed Exchange Rate. 30. Based on ..... theory, each country can increase its wealth by specializing in the production of good that it is less efficient at. A) Comparative advantage. B) Mercantilism. C) Competitive advantage. D) Absolute advantage. Show Answer Correct Answer: D) Absolute advantage. ← 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