This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 95 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 95 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An increase in Mexico's demand for United States goods would cause the value of the dollar to do which of the following? A) Appreciate because the price level in the United States would increase. B) Appreciate because Mexico would be selling more United States dollars. C) Depreciate because the United States would be buying more Mexican pesos. D) Appreciate because Mexico would be purchasing more United States dollars. Show Answer Correct Answer: D) Appreciate because Mexico would be purchasing more United States dollars. 2. The loanable funds market is best described as bringing together A) Savers and borrowers. B) Investors and borrowers. C) Financial institutions and investors. D) Savers and lenders. E) Banks and savers. Show Answer Correct Answer: A) Savers and borrowers. 3. Which one of the following is not an aim of Regional Trade Block. A) Diffusion of Culture. B) Curb restrictions. C) Encourage free trade between member countries. D) Encourage trade between neighbouring countries. Show Answer Correct Answer: A) Diffusion of Culture. 4. Which country had FTA with Vietnam before CPTPP? A) Canada. B) Peru. C) Chile. D) Mexico. Show Answer Correct Answer: C) Chile. 5. What is the infant industries argument for government intervention in international trade? A) To promote industrialization. B) To maintain essential industries. C) To protect infant industries. D) To prevent unemployment. Show Answer Correct Answer: C) To protect infant industries. 6. Suppose the EU removes ALL tariffs, embargoes, subsidies, and quotes. What is MOST LIKELY to happen to the international value of the Euro? A) Depreciate, because Europeans will buy more goods from other countries. B) No change because trade barriers do not affect exchange rates. C) Depreciate, because Americans will want more European goods. D) Appreciate, because Europeans will buy more goods from other countries. Show Answer Correct Answer: B) No change because trade barriers do not affect exchange rates. 7. What is absolute advantage of trade? A) One country produces more of everything than another country. B) Two countries produce comparable goods. C) Two countries produce distinctively different goods. D) A poorer country is more efficient at producing something than a rich country. Show Answer Correct Answer: A) One country produces more of everything than another country. 8. Which following is true? A) Vietnam is a trade deficit. B) Vietnam is a trade surplus country. Show Answer Correct Answer: A) Vietnam is a trade deficit. 9. The annual difference between a country's exports and imports is called what? A) Net Exports. B) High Exports. C) Low Exports. D) None of above. Show Answer Correct Answer: A) Net Exports. 10. When a nation imports more than they export, that nation has a A) Trade fails. B) Trade free economic system. C) Trade surplus. D) Free trade agreement. Show Answer Correct Answer: A) Trade fails. 11. What is the ability to produce a good by using fewer resources than any other country? A) Tariffs. B) Absolute advantage. C) Comparative advantage. D) International trade. Show Answer Correct Answer: B) Absolute advantage. 12. Which of the following would reduce a country's Economic Freedom of the World rating? A) Free trade and low taxes. B) High tariffs and trade restrictions. C) A legal system that secures private property rights and provides even-handed enforcement of contracts. D) Competitive markets and minimal government regulation. Show Answer Correct Answer: B) High tariffs and trade restrictions. 13. When we spend more foreign currency than we receive, then we get a foreign currency deficit. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 14. International trade is ..... A) Trade carried out in a city by buying and selling goods originating from abroad. B) Trade carried out by two countries in the same area that is mutually beneficial. C) Trade carried out by two countries that have different interests in order to increase consumption. D) Trade carried out by two or more countries to exchange goods with the aim of mutual benefit . Show Answer Correct Answer: C) Trade carried out by two countries that have different interests in order to increase consumption. 15. Positive impacts of multinational companies include: A) Destruction of the environment. B) Pollution. C) Increased job opportunities. D) Exploitation of workers. Show Answer Correct Answer: C) Increased job opportunities. 16. The only value that politics and economics share is A) A. security. B) Justice. C) Equity. D) Efficiency. Show Answer Correct Answer: A) A. security. 17. The World Trade Organization (WTO) does not A) Monitor national trade policies. B) Help member countries with technology and training in relation to trade. C) Administer trade agreements. D) Monitor the quality of goods traded across borders. Show Answer Correct Answer: D) Monitor the quality of goods traded across borders. 18. How does this agreement negatively affect the U.S. economy? Use the information below to answer the question. Under the North American Free Trade Agreement (NAFTA), the last restrictions on U.S.-Mexican agricultural trade were removed in 2008. Between 2007 and 2008, the value of agricultural exports to Mexico increased by 23%, and the value of imports from Mexico increased by 26% for the main commodities that had been subject to those restrictions. A) U.S. foreign relations with Mexico will suffer. B) U.S. agricultural production will become less efficient. C) U.S. consumers will pay higher prices for Mexican products. D) U.S. farmers will experience more competition. Show Answer Correct Answer: D) U.S. farmers will experience more competition. 19. The foreign company is able to exercise full control over its operations in foreign countries. What is it? A) Import. B) Contract manufacturing. C) Wholly owned subsidiary. D) Joint venture. Show Answer Correct Answer: C) Wholly owned subsidiary. 20. What are the disadvantages of trade? A) Unemployment. B) Lower input prices. C) Wider markets for businesses. D) More choice for consumers. Show Answer Correct Answer: A) Unemployment. 21. Which one of the following is a main feature of the Single European Market A) Establishment of quotas for the movement of goods between member countries. B) Removal of common external tariffs on imports from non-member countries. C) Adoption of a common currency between member states. D) The free movement of capital and labour between member countries. Show Answer Correct Answer: D) The free movement of capital and labour between member countries. 22. Assisting developing countries in trade policy issues, through technical assistance and training programme A) EU. B) UNCTAD. C) APEC. D) WTO. Show Answer Correct Answer: D) WTO. 23. INTERNAL TRADE MEANS A) Trade with a foreigner. B) Trade within the boundaries of a country. C) Trade at global level. D) Trade between two countries. Show Answer Correct Answer: B) Trade within the boundaries of a country. 24. A short term consequence of a more developed country investing in a less developed country includes the introduction of A) Advanced technological and technical processes. B) Reduced competition. C) Lower average wage rates. D) Greater unemployment. Show Answer Correct Answer: A) Advanced technological and technical processes. 25. Ports which are situated away from the sea coast are ..... A) Inland ports. B) Out Ports. C) Entrepot Ports. D) Ports of call. Show Answer Correct Answer: A) Inland ports. 26. According to David Ricardo, if a country produces cloth efficiently but with a high opportunity cost it should A) Produce much more cloth. B) Trade for cloth made with a lower opportunity cost. C) Reduce its opportunity costs for making cloth. D) Trade for materials other than cloth. Show Answer Correct Answer: B) Trade for cloth made with a lower opportunity cost. 27. What is the main benefit of international trade for domestic companies that export goods? A) Access to a larger market and economies of scale. B) Lower production costs and higher profits. C) Protection from foreign competition. D) Increased government subsidies. Show Answer Correct Answer: A) Access to a larger market and economies of scale. 28. Imports are goods and services that one country sells to other countries. A) True. B) False. Show Answer Correct Answer: B) False. 29. What do you call the taxes or duties paid for particular class imports or export? A) TRADE BARRIER. B) TARIFFS. C) MERCANTILISM. D) None of above. Show Answer Correct Answer: B) TARIFFS. 30. How many main risks in international trade? A) 4. B) 2. C) 4. D) 3. E) 1. Show Answer Correct Answer: D) 3. ← 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