This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 92 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 92 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Our nation, as well as the people, can gain by having international trade ..... A) By specializing. With trade, everyone ends up better off than before. B) The distribution of natural, human, and capital resources is uneven among nations. C) Not all nations have the same degree of technology. D) Ex:China has an abundant supply of cheap labor, producing labor-intensive goods cheaper than other countries. E) All are correct. Show Answer Correct Answer: E) All are correct. 2. Two countries A and B produce wheat and cloth. In one day country A can produce either 12 units of wheat or 3 units of cloth, while country B can produce 4 units of wheat or 2 units of cloth. If country A and country B trade, according to the theory of comparative advantage A) Country A should export cloth because it has a lower opportunity cost of producing cloth. B) Country B should export wheat because it has a lower opportunity cost of producing wheat. C) Country B should export cloth because it has a higher opportunity cost of producing cloth. D) Country A should export wheat because it has a lower opportunity cost of producing wheat. Show Answer Correct Answer: D) Country A should export wheat because it has a lower opportunity cost of producing wheat. 3. Those who stand to gain from trade A) Do not really care about the issue of income redistribution. B) Could not compensate losers since there are so many poor people. C) Could compensate losers but would rather not in modern industrial economies. D) Compensate losers at least partially through such legislation as unemployment compensation. Show Answer Correct Answer: D) Compensate losers at least partially through such legislation as unemployment compensation. 4. What are the types of risk that are unique to a country like Syria, North Korea or Egypt. A) Sovereign RiskThere are two instances where sovereign risk can happen. First, the importer's country may suddenly be at war and thus prohibits any outflow of currency from their country. Second. there are possibilities that the government of the buyer's country imposing exchange control regulation because of political reason. B) Political RiskAs a result of political changes or instability in a country. Instability could stem from a change in government, legislative bodies, other foreign policy makers or military control. C) Media RiskIt is important to be aware of the types of media available and the kind of media your target market uses to gain information about products and services they wish to buy. D) 1&3 only. E) 1 & 2 only. Show Answer Correct Answer: E) 1 & 2 only. 5. It refers to the idea that businesspeople should consider the social consequences of economic actions when making business decisions. A) Noblesse oblige. B) Social responsibility. C) Ethical dilemmas. D) None of above. Show Answer Correct Answer: B) Social responsibility. 6. ..... is the relative strength that one needs to win in a competition. A) Power. B) Competitiveness. C) Advantage. D) None of above. Show Answer Correct Answer: B) Competitiveness. 7. Which factor of production plays a role in the Comparative Advantage model? A) Capital. B) Labour. C) Land. D) Goods. Show Answer Correct Answer: B) Labour. 8. How many types of insurance are available in MU? A) 8. B) 4. C) 3. D) 6. Show Answer Correct Answer: A) 8. 9. In recent years, the US has experienced a deficit on its overall current account of the balance of payments. What could have led to an increase in the size of the deficit? A increased competitiveness of goods made in the US B increased earnings by US investors in foreign companies C increased numbers of overseas visitors to the US D increased spending on US military bases abroad A) B. B) D. C) A. D) C. Show Answer Correct Answer: B) D. 10. Balance of Payments A) Country's total amount of exports minus the total amount of imports. B) Foreign goods shipped into a country or region. C) Comparison of amounts of foreign currency taken into a country versus amounts of domestic currency paid out. D) Goods produced in one country, then shipped to another region or country. Show Answer Correct Answer: C) Comparison of amounts of foreign currency taken into a country versus amounts of domestic currency paid out. 11. Our organizational culture exerts a profound influence on the way we behave as businesspeople. A) False. B) True. Show Answer Correct Answer: A) False. 12. What does CIF stand for in international trade? A) Cargo Insurance Form. B) Cost Insurance Factor. C) Customs Import Fee. D) Cost, Insurance, and Freight. Show Answer Correct Answer: D) Cost, Insurance, and Freight. 13. Who has the comparative advantage for crowns A) Avalon. B) Camelot. Show Answer Correct Answer: A) Avalon. 14. A document declaring in which country a commodity or good was manufactured A) Export Licence. B) Certificate of Origin. C) Bill of Lading. D) Custom Specification. Show Answer Correct Answer: B) Certificate of Origin. 15. In countertrade, can you exchange for 50% cash & 50% goods ..... A) No. B) Yes. Show Answer Correct Answer: B) Yes. 16. Which of the following is NOT the arguments for protectionism? A) Protect domestic employment. B) Prevent dumping. C) Lower revenue through tariff. D) Protect infant & local industries. Show Answer Correct Answer: C) Lower revenue through tariff. 17. The definition of Trade is A) Importing goods. B) Exporting goods. C) To buy or sell goods and services. D) None of above. Show Answer Correct Answer: C) To buy or sell goods and services. 18. Absolute advantage is the ability of a nation to produce commodities more efficiently than another nation A) Specific use of resources that decreases output. B) Ability of a nation to produce goods at a lower opportunity costs. C) The ability of a nation to produce commodities more efficiently than another nation. D) The ability of a nation to produce commodities less efficiently than another nation. Show Answer Correct Answer: C) The ability of a nation to produce commodities more efficiently than another nation. 19. What year established the International Monetary Fund and the world bank? A) 1944. B) 1934. C) 1945. D) 1954. Show Answer Correct Answer: C) 1945. 20. The proliferation of trading blocs can result in the implementation of international regulatory norms that..... A) Perfect. B) Overlap each other. C) Very good. D) Stronger. Show Answer Correct Answer: B) Overlap each other. 21. When the production possibility frontier is a straight line, the opportunity cost of a certain good in terms of another good is ..... A) Constant. B) Proportional. C) Positive. D) Inverse. Show Answer Correct Answer: A) Constant. 22. WHY WOULD A TARIFF EFFECT INNOVATION? A) DOMESTIC FIRMS OVER CONFIDENCE. B) LACK OF COMPETITION. C) BOTH. D) None of above. Show Answer Correct Answer: C) BOTH. 23. These ports specialise in bulk cargo like grain, sugar, ore, oil, chemicals and similar materials. A) Commercial Ports. B) Comprehensive Ports. C) Industrial Ports. D) Oil Ports. Show Answer Correct Answer: C) Industrial Ports. 24. Forms of Trade Remedies include: A) Anti-dumping. B) Safeguard. C) Subsidies and reward measures. D) All true. Show Answer Correct Answer: D) All true. 25. During a recession what would you do to stimulate the economy? A) Raise the the required reserve ratio, raise the discount rate, Sell Bonds. B) Lower the required reserve ratio, Lower the discount rate, Buy Bonds. Show Answer Correct Answer: B) Lower the required reserve ratio, Lower the discount rate, Buy Bonds. 26. To help protect Irish beef consumption and demand, Ireland placed this type of Barrier to Trade on New Zealand beef. A) Subsidy. B) Tariff. C) Embargo. D) None of above. Show Answer Correct Answer: B) Tariff. 27. The European Union has encouraged all of the following EXCEPT A) Common currency-Euro. B) Positive relationships among leaders. C) Common enemies. D) Free trade between European countries. Show Answer Correct Answer: C) Common enemies. 28. The increasing tendency for countries to trade with each other and to buy global goods A) Protectionism. B) Tariffs. C) Trading blocs. D) Globalisation. Show Answer Correct Answer: D) Globalisation. 29. How does a trade imbalance with higher imports and lower exports affect non-material living standards? A) It has no effect on non-material living standards. B) It leads to increased government spending on welfare and healthcare. C) It puts pressure on existing services and worsens non-material living standards. D) It improves non-material living standards for all members of society. Show Answer Correct Answer: C) It puts pressure on existing services and worsens non-material living standards. 30. An agreement to eliminate trade barriers between Canada, Mexico, and USA. A) USDA. B) NAFTA. C) MFN. D) WTO. Show Answer Correct Answer: B) NAFTA. ← 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