This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 96 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 96 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. According to Heckscher-Ohlin theorem, the quality of ..... of a country are its factor endowment. A) Imports and exports. B) Deficits and surpluses. C) Labour, land and natural resources. D) Money. Show Answer Correct Answer: C) Labour, land and natural resources. 2. How does the Fed seek to prevent inflation? A) Raise the required reserve ratio, raise the discount rate, Sell Bonds. B) Lower the the required reserve ratio, Lower the discount rate, Buy Bonds. Show Answer Correct Answer: A) Raise the required reserve ratio, raise the discount rate, Sell Bonds. 3. Trading one thing for another A) Canadian Dollar. B) Currency. C) Weight. D) Exchange rate. E) Exchange. Show Answer Correct Answer: E) Exchange. 4. Negative balance of trade where a countries imports exceed its exports A) Trade Failure. B) Trade Dependency. C) Imports. D) Exports. Show Answer Correct Answer: A) Trade Failure. 5. What is the definition of e-commerce? A) The buying and selling of goods and services over an electronic network. B) The buying and selling of goods and services in physical stores. C) The exchange of goods and services between countries. D) The transmission of funds or data through postal mail. Show Answer Correct Answer: A) The buying and selling of goods and services over an electronic network. 6. Which of the following is NOT the tools of protectionism? A) Forex control. B) Opportunity cost. C) Import license. D) Tariff. Show Answer Correct Answer: B) Opportunity cost. 7. Which of the following is not included in an International Commercial invoice? A) Item. B) Quantity. C) Price for the products or services. D) Delivery and payment conditions. E) Instruction booklet. Show Answer Correct Answer: E) Instruction booklet. 8. The Philippines' top exports are semiconductors and electronic components. A) FALSE. B) TRUE. Show Answer Correct Answer: A) FALSE. 9. A government wants to use trade protection both to improve its trade performance and to raise government revenue. Which policy will help it to achieve this? A raising quotas on imported goods B raising subsidies on exported goods C raising tariffs on exported goods D raising tariffs on imported goods A) D. B) C. C) A. D) B. Show Answer Correct Answer: A) D. 10. Trade agreement which sets rules for trade and investment among Canada, Mexico and the United States A) North American Free Trade Agreement. B) Surplus. C) Dumping. D) General Agreement on Tariffs and Trade. Show Answer Correct Answer: A) North American Free Trade Agreement. 11. What is the main goal of the European Union? A) Promote human rights. B) Serve, honor, and protect. C) Living to serve. D) Doing to learn. Show Answer Correct Answer: A) Promote human rights. 12. Was created in 1995 A) International Monetary Fund. B) World Bank. C) World Trade Organization. D) None of above. Show Answer Correct Answer: C) World Trade Organization. 13. When an export subsidy is used A) Foreign exporting producers are better off. B) There is an increased efficiency in production. C) Domestic consumers are worse off. D) Domestic producers are worse off. Show Answer Correct Answer: C) Domestic consumers are worse off. 14. An increase in the international value of the US dollar will most likely benefit which of the following? A) Currency traders holding large quantities of Mexican Pesos. B) US exporters. C) Canadian citizens expecting to purchase real estate in the United States. D) Japanese citizens vacationing in the US. E) US citizens that regularly purchase foreign goods. Show Answer Correct Answer: E) US citizens that regularly purchase foreign goods. 15. The terms of delivery have to be defined in order to determine ..... and ..... the seller has fulfilled the obligations to deliver according to the contract and ..... isneeded to do so. A) Why, what, how. B) When, where, what. C) What, when, where. D) None of above. Show Answer Correct Answer: B) When, where, what. 16. To analyze the effects of the policies of this theme is the single most consistent mission of international economics. A) International Policy Coordination. B) Exchange Rate Determination. C) International Trade. D) Protectionism. Show Answer Correct Answer: D) Protectionism. 17. Which Theory of International Trade Research highlights the conflict between economies of the division of labor and transaction costs? A) Modern Classic Trade Theory. B) New Modern Trade Theory. C) New Classical Trade Theory. D) Modern Classical Tradement Theory. Show Answer Correct Answer: C) New Classical Trade Theory. 18. How long is the duration of validity for export permits from the issued date? A) 70 days. B) 60 days. C) 40 days. D) 50 days. Show Answer Correct Answer: B) 60 days. 19. That is not one of the main objectives of the rules of origin into a free trade agreement A) To implement measures and instruments of commercial policy such as anti-dumping duties and safeguard measures. B) To determine whether imported products shall receive preferential treatment. C) For the purpose of trade statistics. D) For the determination of special prices of selling to the destination internal market. Show Answer Correct Answer: D) For the determination of special prices of selling to the destination internal market. 20. If there is high inflation in the UAE what would happen the value of the Dirham and GDP? A) Decrease, decrease. B) Decrease, increase. C) Increase, increase. D) Increase, decrease. Show Answer Correct Answer: A) Decrease, decrease. 21. The value of the dollar increases A) Appreciation. B) Depreciation. C) Exchange rates. D) None of the above. Show Answer Correct Answer: A) Appreciation. 22. This supranational organisation deals with the global rules of trade between countries. A) WTO (World Trade Organisation). B) The World Bank. C) IMF (International Monetary Fund). D) UN (United Nations). Show Answer Correct Answer: A) WTO (World Trade Organisation). 23. Stopping the export and import of a product is known as? A) Tariff. B) Embargo. C) Quota. D) Deal. Show Answer Correct Answer: B) Embargo. 24. Which stage of the product life cycle has been reached when sales growth for a company's product is slowing? A) Growth. B) Introduction. C) Maturity. D) Decline. Show Answer Correct Answer: C) Maturity. 25. Country Z is both a producer and an importer of green tea. If country Z imposes a tariff on imports of green tea, which of the following will occur in the domestic market of green tea? A) Consumer surplus will increase. B) Producer surplus will decrease. C) Domestic production will increase. D) Total consumption of green tea will increase. E) The price paid by domestic consumers will decrease. . Show Answer Correct Answer: C) Domestic production will increase. 26. In 2018, the US sent back of a ship of steel to Australia because it wasn't label properly. What type of trade barrier is it? A) Standard. B) Subsidy. C) Embargo. D) Quota. Show Answer Correct Answer: A) Standard. 27. Which statement best explains why nations must trade? A) All nations belong to free trade agreements. B) All nations seek out new production methods. C) No nation has all necessary resources. D) No nation can employ all of its laborers. Show Answer Correct Answer: C) No nation has all necessary resources. 28. The seller assumes the costs in general until the delivery of the merchandise is done. The buyer assumes import procedures and the risk of the goods loaded in the transport contracted by the seller.According to the responsibilities of the seller and buyer, what the corresponding Incoterm? A) EXW-Ex Work. B) CPT-Carriage Paid To. C) DAP-Delivered At Place. D) FOB-Free On Board. Show Answer Correct Answer: B) CPT-Carriage Paid To. 29. Which term refers to the act of selling products or services to customers in foreign countries? A) Exporting. B) Offshoring. C) Importing. D) Insourcing. Show Answer Correct Answer: A) Exporting. 30. Goods imported for export are known as A) RE-EXPORT. B) EXPORT. C) IMPORT. D) ENTREPOT. Show Answer Correct Answer: D) ENTREPOT. ← 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