This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 93 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 93 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... is a unique identification code for both financial and non-financial institutions. A) International Organization for Standardization (ISO). B) International Commercial Terms (Incoterms). C) International Chamber of Commerce (ICC). D) Business Identifier Code (BIC). Show Answer Correct Answer: D) Business Identifier Code (BIC). 2. What does INCOTERM stand for? A) International Commercial Termination. B) International Commercial Terms. C) International Container Termination. D) International Communication Terms. Show Answer Correct Answer: B) International Commercial Terms. 3. Which of the following is one of the four attributes present in Porter's diamond? A) Factor Endowments. B) Procedural innovation. C) Structural Innovation. D) Economies of Scale. Show Answer Correct Answer: A) Factor Endowments. 4. Which is NOT a step in the importing process? A) Create and finalize a purchase agreement. B) Receive goods. C) Confirm the purchase. D) Assess demand. Show Answer Correct Answer: D) Assess demand. 5. In order to become more efficient and to make greater profits, both individuals and nations learn to A) Compete. B) Specialize. C) Cheat. D) Produce more resources. Show Answer Correct Answer: A) Compete. 6. Which of the following is a disadvantage of having quotas? A) Black-market may occur. B) Fall in income. C) Unemployment. D) Fall in efficiency. Show Answer Correct Answer: A) Black-market may occur. 7. What are services in the context of trade? A) Manufactured items or agricultural commodities. B) Intangible goods such as advertising and telecommunication. C) Goods sourced, assembled, packaged, and sold in different parts of the world. D) Products that can be produced efficiently by a country. Show Answer Correct Answer: B) Intangible goods such as advertising and telecommunication. 8. Canada exports syrup to the US, while imports computers from the US. Syrup-biased growth in Canada will ..... A) Worsen the national income of the US. B) Improve the national welfare of the US. C) Better off. D) Improve the terms of trade of Canada. Show Answer Correct Answer: B) Improve the national welfare of the US. 9. Which one is an alliance? A) OPEC. B) NATO. C) EU. D) NAFTA. Show Answer Correct Answer: B) NATO. 10. A disadvantage of specialisation:Domestic industries may be forced to shut down because foreign firms are better at producing the goods or services provided by that industry. A) Yes, I understand this from the notes. B) No, I don't understand this from the notes. C) No, I don't understand this, as I have not read the notes. D) None of above. Show Answer Correct Answer: A) Yes, I understand this from the notes. 11. He says "when goods cannot cross borders, armies will." A) Chris Horseman. B) Frederic Bastiat. C) Robert Voltman. D) Evenett & Fritz. Show Answer Correct Answer: B) Frederic Bastiat. 12. Which of the following was developed with the rationale that the U.S.-Canadian trade was the largest bilateral trade in the world and that the United States is Mexico's and Canada's largest trading partner? A) NAFTA (the North American Free Trade Agreement). B) EU (the European Union). C) ASEAN (Association of South East Asian Nations). D) CEFTA (the Central European Free Trade Agreement). Show Answer Correct Answer: A) NAFTA (the North American Free Trade Agreement). 13. Which of the following country is not in the Andean Community of trade bloc A) Greece. B) Bolivia. C) Peru. D) Colombia. Show Answer Correct Answer: A) Greece. 14. Misha traveled to India and took $ 200 in U.S. currency. When Misha exchanged the $ 200 in India, she received about (1USD=40.3950 Indian Rupee) A) 8, 079 Indian rupees. B) 4, 960 Indian rupees. C) 4, 040 Indian rupees. D) 2, 480 Indian rupees. Show Answer Correct Answer: A) 8, 079 Indian rupees. 15. Jewelry from Brazil is sold in stores in Utah. A) Import. B) Export. Show Answer Correct Answer: A) Import. 16. Government policy to encourage exports so that products have a competitive edge is ..... A) Provides convenience to producers of export goods. B) Make international trade agreements. C) Maintaining the stability of the rupiah exchange rate. D) Increase promotion. Show Answer Correct Answer: A) Provides convenience to producers of export goods. 17. An exporter may have to spend months learning about a country's trade regulations, business practices, and more before a deal can be closed. A) True. B) False. Show Answer Correct Answer: A) True. 18. The dollar is worth less ..... A) Depreciate. B) Appreciate. Show Answer Correct Answer: A) Depreciate. 19. Which of these are a positive impact on multinational companies? A) Difficult to communicate. B) Low morale in home workers. C) Increases competition. D) Well known around the world. Show Answer Correct Answer: D) Well known around the world. 20. Which of the following best describes the term balance of trade? A) A trade agreement between two countries. B) Trade among countries is equally beneficial forall of the countries involved. C) Countries are only allowed to import the same value of goods that they export. D) The value of a country's exports equals the country's imports. Show Answer Correct Answer: D) The value of a country's exports equals the country's imports. 21. The subject of economics across national boundaries A) Foreign Exchange. B) Trade Failure. C) Currency. D) International Finance. Show Answer Correct Answer: D) International Finance. 22. Kentucky got shoes made in China A) Export. B) Import. Show Answer Correct Answer: B) Import. 23. Countries will gain by concentrating on a limited range of good because: A) Producers discover new and more efficient techniques. B) Their scale of operation will warrant mass production methods and the increase use of capital. C) They are more likely to improve the product itself as a result of improved skill and research. D) All of the above. Show Answer Correct Answer: A) Producers discover new and more efficient techniques. 24. The support activities of the value chain provide outputs that allow the primary activities to occur. A) True. B) False. Show Answer Correct Answer: B) False. 25. Which one of these is a benefit of Global Trade? A) Quotas. B) Increased Sales/Profits. C) Language differences. D) Less choice and variety. Show Answer Correct Answer: B) Increased Sales/Profits. 26. What is the main benefit of using the WIPO Madrid System for international trademark protection? A) Lower cost for trademark registration. B) Automatic trademark protection in all member countries. C) Faster processing time for trademark applications. D) Ability to file a single application for multiple countries. Show Answer Correct Answer: D) Ability to file a single application for multiple countries. 27. Commercial invoice A) Commercial invoice. B) Commercial factsheet. C) Commercial bill. D) Commercial turnover. Show Answer Correct Answer: A) Commercial invoice. 28. ..... is defined as the absence of tariffs, quotas, or other governmental impediments to internationaltrade, allows each country to specialize in the goods it can produce cheaply and efficiently relative to other countries. A) Import. B) Tariff. C) Tax. D) Free Trade. Show Answer Correct Answer: D) Free Trade. 29. Economies of scale give countries an incentive to ..... even in the absence of differences in resources or technology between countries. A) Specialize and trade. B) Socialize and trade. C) Modernize and exchange. D) Differentiate and develop. Show Answer Correct Answer: A) Specialize and trade. 30. Imperfectly competitive firms have a demand curve that ..... and a marginal revenue curve that ..... and is ..... the demand curve. A) Slopes downward; slopes downward; below. B) Is horizontal; is horizontal; the same as. C) Slopes downward; is horizontal; above. D) Is horizontal; slopes downward; below. Show Answer Correct Answer: B) Is horizontal; is horizontal; the same as. ← 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