This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 94 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 94 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Who has the absolute advantage for brooms? A) Ravenclaw. B) Gryffindor. Show Answer Correct Answer: A) Ravenclaw. 2. Which of the following is NOT an argument against free trade? A) Free trade causes the US to be too dependent on other nations. B) Free trade causes jobs to leave the country. C) Free trade brings jobs into the US. D) Free trade causes money to leave the country. Show Answer Correct Answer: C) Free trade brings jobs into the US. 3. This is a tax on imports that is used to increase price of foreign products and raise government revenue. Sometimes we will still by the foreign product ..... A) Embargo. B) Tariff. C) Quota. D) Subsidy. Show Answer Correct Answer: B) Tariff. 4. Which is VietNam's biggest import partner? A) India. B) Japan. C) China. D) Uniited State. Show Answer Correct Answer: C) China. 5. Which of these are features of globalisation have been benefits for Walmart, Apple and Nike who operate internationally? More then 1 correct answer, for this question, how many have you identied. A) Using common currencies. B) International Mobility of labour. C) Trading Blocs. D) Have multinational coroperations. Show Answer Correct Answer: B) International Mobility of labour. 6. Observe Table 8.5. Why does India import edible oil, inspite of being an agriculturally rich country? Choose the best possible answer. A) Indians consume a lot of oily food. B) The consumption of edible oil in India is more than its production. C) India is largest producer of edible oil in the world. D) India doesnot produce oilseeds. Show Answer Correct Answer: B) The consumption of edible oil in India is more than its production. 7. The statements that follow relate to possible gains from an increase in free trade. Which gain is least certain to result? A Increased specialisation leads to improvements in productivity. B Trade extends the choice of goods available to consumers. C Trade leads to an increase in the number of jobs. D Trade leads to a reduction in costs of production. A) D. B) C. C) B. D) A. Show Answer Correct Answer: B) C. 8. A disadvantage of globalisation for manufacturers in the UK would include which one of the following A) Access to wider markets. B) Low-cost competition from overseas firms. C) Difficult to find workers. D) The spread of technology could cause local unemployment. Show Answer Correct Answer: B) Low-cost competition from overseas firms. 9. The opposite of a ..... exchange rate is a ..... exchange rate. A) Foreign, flexible. B) Floating, foreign. C) Fixed, floating. D) Flexible, floating. Show Answer Correct Answer: C) Fixed, floating. 10. Infant industries should be granted trade protection on the grounds that A) Firms that face competition should be protected. B) New small firms are unable to compete fairly with large established firms. C) They ensure supplies of needed products to the domestic economy. D) They can be used to overcome a trade deficit. Show Answer Correct Answer: B) New small firms are unable to compete fairly with large established firms. 11. International trade without government interference A) Trade Surplus. B) Trading Blocs. C) Free trade. D) Trade Failure. Show Answer Correct Answer: C) Free trade. 12. Low skilled workers may face rising income inequality compared with high skilled workers A) Con. B) Pro. Show Answer Correct Answer: A) Con. 13. Actions of a government to establish barriers to foreign trade. A) Deregulation. B) Liberalism. C) Protectionism. D) Let fair. Show Answer Correct Answer: C) Protectionism. 14. A tariff on a good or service A) Would increase the price of the good or service in the domestic market. B) Would decrease the price of the good or service in the domestic market. Show Answer Correct Answer: A) Would increase the price of the good or service in the domestic market. 15. A student records her income and spending for past month, she uses the function of money A) Medium of exchange. B) Standard of deferred payments. C) Unit of account. D) Store of value. Show Answer Correct Answer: C) Unit of account. 16. Which of the following trade policies limits specified quantity of goods to be imported at one tariff rate A) Quota. B) Import tariff. C) Specific tariff. D) All the above. Show Answer Correct Answer: A) Quota. 17. Which of these cares is the most important for you? A) Use of mask. B) Wash your hands frequently. C) Go out only to what is necessary. D) Not having direct contact with people. Show Answer Correct Answer: A) Use of mask. 18. Silicon Valley is not one of the examples of industrial cluster. A) True. B) False. Show Answer Correct Answer: B) False. 19. A surplus occurs when A) The quantity demanded exceeds the the quantity supplied. B) There is equilibrium. C) The quantity supplied exceeds the quantity demanded. D) The quantity supplied equals the the quantity demanded. Show Answer Correct Answer: C) The quantity supplied exceeds the quantity demanded. 20. What is the first step procedure for importing timber product? A) Record-keeping. B) Obtain an Import License. C) Customs Inspection. D) Transportation and Distribution. Show Answer Correct Answer: B) Obtain an Import License. 21. What is the term for trading one product or service for another without using money? A) Multilateral. B) Barter. C) Import restriction. D) Export subsidy. Show Answer Correct Answer: B) Barter. 22. Export tariffs are far less common than import tariffs. A) True. B) False. Show Answer Correct Answer: A) True. 23. What is the main goal of trade liberalization? A) Reduce barriers to trade and promote free movement of goods and services between countries. B) Encourage unequal trade agreements and exploitation of smaller economies. C) Promote monopolies and limit competition between countries. D) Increase barriers to trade and restrict movement of goods and services between countries. Show Answer Correct Answer: A) Reduce barriers to trade and promote free movement of goods and services between countries. 24. This document guarantees that payment will be made when the seller meets the conditions of sale. A) Letter of credit. B) Pro forma invoice. Show Answer Correct Answer: A) Letter of credit. 25. One of the benefits of international trade is ..... A) Reduce the price of goods in the country. B) Providing for domestic needs. C) Reduce the value of the rupiah exchange rate. D) Closing job opportunities. Show Answer Correct Answer: B) Providing for domestic needs. 26. What is the main benefit of businesses operating within a trading block? A) Higher tariffs on imported goods. B) Limited access to new markets. C) Increased competition from outside the trading block. D) Reduced barriers to international trade. Show Answer Correct Answer: D) Reduced barriers to international trade. 27. Newspaper Headline: "The U.S. government places a tax on all imported cars." Which trade barrier is being used? A) Quota. B) Tariff. C) Subsidy. D) Standard. Show Answer Correct Answer: B) Tariff. 28. 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. Which of the following statements is not true? A) Country A has a comparative advantage in cloth. B) Country B has an absolute advantage in wheat. C) Country B has an absolute advantage in cloth. D) Country A has a comparative advantage in wheat. Show Answer Correct Answer: C) Country B has an absolute advantage in cloth. 29. Is the exchange of goods and services between and among countries. A) International Relation. B) International Globalization. C) International Trade. D) Balance of Trade. Show Answer Correct Answer: C) International Trade. 30. Organizational Culture is..... A) Unique. B) Easy for others to imitate. C) Not unique. D) Not Dynamic. Show Answer Correct Answer: A) Unique. ← 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