This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 9 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. How much money is the international wildlife trade estimated to be worth annually? A) Millions. B) Billions. C) Thousands. D) Hundreds. Show Answer Correct Answer: B) Billions. 2. In inter-regional trade the flow of goods, services, labor and capital moves freely to any region, whereas in interstate trade the flow of trade can be regulated by each country.The illustration above is a form of the difference between trade between regions and trade between countries in terms of ..... A) Coverage area. B) The medium of exchange used. C) National sovereignty. D) Market opportunities. Show Answer Correct Answer: C) National sovereignty. 3. What does the WTO stand for? A) World Trade Organization. B) World Trucking Organization. C) Work Trade Organization. D) Work Tariff Origins. Show Answer Correct Answer: A) World Trade Organization. 4. Comparative Advantage is based on: A) Absolute efficiency. B) Government regulations. C) Lowest opportunity cost. D) Fixed exchange rates. Show Answer Correct Answer: C) Lowest opportunity cost. 5. Comparative advantage theory was proposed by ..... in 1817 A) John Dunning. B) David Ricardo. C) Adam Smith. D) That is, Hecksher. Show Answer Correct Answer: B) David Ricardo. 6. What is defined as delivery of a service from the territory of one country into the territory of the other country? A) Commercial Presence. B) Presence of Natural Persons. C) Cross-Border Trade. D) Consumption Abroad. Show Answer Correct Answer: C) Cross-Border Trade. 7. The role of aid in promoting growth and development is to help A) Boost capital investment. B) Encourage privatisation and de-regulation. C) Discourage investment in public services. D) Create an effective tax structure. Show Answer Correct Answer: A) Boost capital investment. 8. On 15 April 1994, in Marroco, which agreement is signed to establish WTO? A) General Agreement on Trade and Tariff. B) General Agreement on Trade and Service. C) Marrakesh Agreement. D) Uruguay Agreement. Show Answer Correct Answer: C) Marrakesh Agreement. 9. To promote the protection of intellectual property throughout the world A) WIPO. B) MERCOSUR. C) WTO. D) COMESA. Show Answer Correct Answer: A) WIPO. 10. Tariffs and quotas are designed to A) Protect domestic industry. B) Decrease prices consumers pay for goods. C) Increase trade deficits. D) Promote third-world development. Show Answer Correct Answer: A) Protect domestic industry. 11. In the exporting country, an export subsidy will A) Help consumers and raise the overall economic welfare of the exporting country. B) Hurt consumers but raise the overall economic welfare of the exporting country. C) Hurt consumers and lower the overall economic welfare of the exporting country. D) Help consumers but lower economic welfare of the exporting country. Show Answer Correct Answer: C) Hurt consumers and lower the overall economic welfare of the exporting country. 12. The Pakistan, Sri Lanka FTA came into effect in June ..... A) 2002. B) 2004. C) 2005. D) None of above. Show Answer Correct Answer: C) 2005. 13. Tariffs and quotas usually raise prices. A) True. B) False. Show Answer Correct Answer: A) True. 14. Australia is a price-taker A) True. B) False. Show Answer Correct Answer: A) True. 15. Which of the following is TRUE to define International Trade? A) Transaction made among different companies in a country. B) Transaction made among different countries in the world. C) Transaction made among different individual in a region. D) None of above. Show Answer Correct Answer: B) Transaction made among different countries in the world. 16. This is the best alternative that we give up, or forgo, when we make a choice or decision. A) Sacrificed Cost. B) Sunk Cost. C) Decision Cost. D) Opportunity Cost. Show Answer Correct Answer: D) Opportunity Cost. 17. What is the name of the approach in which international trade is solely due to international differences in the productivity of labor? A) Specific Factors Model. B) Ricardian Model. C) Economic Model. D) Heckscher-Ohlin Model. Show Answer Correct Answer: B) Ricardian Model. 18. Which of the following reasons why firms expand internationally? A) Profit motives, economic motives, Market Motives. B) Economic motives, Market Motives, Strategic Motives. C) Profit motives, money motives, market motives. D) Economic motives, Money motives, Profit motives. Show Answer Correct Answer: B) Economic motives, Market Motives, Strategic Motives. 19. What is the term for the exchange of goods between different parts of a multinational? A) Interfirm trade. B) Domestic trade. C) International trade. D) Intrafirm trade. Show Answer Correct Answer: D) Intrafirm trade. 20. The key reason why international trade has increased so rapidly is due to A) The rise of dictators. B) A change in consumer tastes. C) Technological advancements and trade agreements. D) All of the above. Show Answer Correct Answer: C) Technological advancements and trade agreements. 21. What is elements of Field of activity about Domestics Trade? A) Within the country. B) A global scale. C) Carry more risks and complicated. D) Multiple nations. Show Answer Correct Answer: A) Within the country. 22. Even if a country has a higher GDP, why might it have a lower standard of living? A) It doesn't make enough goods. B) It doesn't make enough art. C) The population is larger. D) If the country has a high GDP, it's standard of living is always high. Show Answer Correct Answer: C) The population is larger. 23. In negotiation tactics, the emotional reaction when faced with something unpleasant is called: A) Low Ball. B) The Russian Front. C) Flattery. D) The Flinch. Show Answer Correct Answer: D) The Flinch. 24. How would inexpensive lumber from Canada affect the U.S. market for new homes? A) Prices of new homes would decrease. B) Credit available for new homes would increase. C) Prices of new homes would increase. D) Transaction costs for new homes would decrease. Show Answer Correct Answer: A) Prices of new homes would decrease. 25. If, beginning from a free trade equilibrium, the terms of trade improve for a country, then it will A) Increase production of its import competing good. B) Increase the quantity of its imports. C) Increase consumption of its export good. D) Experience an export-biased shift in its production possibility frontier. Show Answer Correct Answer: B) Increase the quantity of its imports. 26. ..... represents the defined form of how the payment shall be made, ie on open account payment terms through a bank transfer, or through documentary collection or letter of credit. A) Competitive situation. B) Methods of payment. C) Terms of payment. D) Time value of money. Show Answer Correct Answer: B) Methods of payment. 27. What is a tax on imported products called? A) A tariff. B) A quota. C) An embargo. D) A value added tax. Show Answer Correct Answer: A) A tariff. 28. Suppose you are the CEO of a company and you want to enter the overseas market, so you sell the goods to an overseas dealer and let them sell them locally (overseas). Is your act of selling the goods to the dealer an international trade? A) Yes. B) No. Show Answer Correct Answer: A) Yes. 29. Country X can manufacture a particular product better and at a lower cost than country Y can. What conclusion can be drawn from this situation? A) Country X should discontinue making that product. B) Country X should sell that product to Country Y. C) Country X has solved the problem of scarcity. D) Country Y should try to produce the same product. Show Answer Correct Answer: B) Country X should sell that product to Country Y. 30. People who favor few or no trade restrictions A) Tariff. B) Free traders. C) Balance of payments. D) Protectionists. Show Answer Correct Answer: B) Free traders. ← 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