This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 97 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 97 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If nations limit trading of clothing who will benefit? A) Department stores who sell clothing. B) Foreign Producers of clothing. C) Domestic Consumers of clothing. D) Domestic producers of clothing. Show Answer Correct Answer: D) Domestic producers of clothing. 2. Which of the following is not true of an International Purchase Order? A) It is preceded by an exchange of information. B) It may constitute a binding offer. C) It is based on the buyer's Purchase Order. D) It is used exclusively between large commercial buyers. Show Answer Correct Answer: D) It is used exclusively between large commercial buyers. 3. ..... unemployment is when workers are jobless and looking for work. A) Structural. B) Residual. C) Frictional. D) Cyclical. Show Answer Correct Answer: C) Frictional. 4. Who is also benefit of International trade? A) Merchants. B) Workers. C) Trader. D) Employers. Show Answer Correct Answer: B) Workers. 5. What is Mexico's biggest international market? A) China. B) Germany. C) United States. D) England. Show Answer Correct Answer: C) United States. 6. The benefits that a person or a company obtain from the production and investment with their products constitutes the A) Quotas. B) Trade. C) Sales. D) Incomes. Show Answer Correct Answer: D) Incomes. 7. What is the ideal situation for a country's exports and imports? A) Exports exceed imports. B) Imports exceed exports. C) Exports and imports are equal. D) Exports and imports are irrelevant. Show Answer Correct Answer: C) Exports and imports are equal. 8. What does FDI stands for. A) Foreign Desire Investment. B) Foreign Direct Interest. C) Forever Different Investment. D) Foreign Direct Investment. Show Answer Correct Answer: D) Foreign Direct Investment. 9. In a command economy, the basic economic questions are answered by: A) Individuals and sellers. B) The traditional methods. C) Central planners. D) None of these. Show Answer Correct Answer: C) Central planners. 10. Technological innovations in transportation and in communications has made it easier to move goods, information, and money around the world. A) True. B) False. Show Answer Correct Answer: A) True. 11. What are some examples of trade barriers that countries may use? A) Tariffs, quotas, and non-tariff barriers. B) Subsidies, embargoes, and sanctions. C) Free trade agreements, currency devaluation, and import licenses. D) Foreign aid, exchange rates, and economic integration. Show Answer Correct Answer: A) Tariffs, quotas, and non-tariff barriers. 12. A Korean company supplies fabrics for a Vietnamese clothes company and requests the Vietnamese company to produce the finished products. The Korean company then pays the Vietnamese company for producing the final products. This transaction is considered as ..... A) Export. B) Re-export. C) Switch trade. D) International processing. Show Answer Correct Answer: D) International processing. 13. The process used to describe the growing interdependence or connection of the world's economies, cultures, and population A) Trade. B) Economics. C) Globalization. D) Expansion. Show Answer Correct Answer: C) Globalization. 14. What are tariffs in international trade? A) Trade agreements between countries. B) Taxes on imported goods. C) Barriers to e-commerce businesses. D) Subsidies on exported goods. Show Answer Correct Answer: B) Taxes on imported goods. 15. What is the effect of a tariff on Consumer Surplus? A) Increase. B) Decrease. C) None. D) Disappears. Show Answer Correct Answer: B) Decrease. 16. ..... is a direct restriction on the quantity of some good that may be imported into a country. A) Import tariff. B) Import quota. C) Import subsidy. D) To the value of the tariff. Show Answer Correct Answer: B) Import quota. 17. Which of the following is a characteristic of capitalism? A) Equality of income. B) Government decision-making is preferred to decentralized decision-making. C) Market determination of prices and quantity. D) Government ownership of all capital. Show Answer Correct Answer: C) Market determination of prices and quantity. 18. Factor endowment theory states that factors in great supply relative to demand will be more costly than factors in short supply relative to demand. A) True. B) False. Show Answer Correct Answer: B) False. 19. The difference between the money a country pays to, and receives from, other nations when it engages in international trade A) Tariff. B) Balance of payments. C) Protectionists. D) Free traders. Show Answer Correct Answer: B) Balance of payments. 20. Consider the following statements!1. There are differences in natural conditions2. There are differences in ideology3. Difference in the mastery of science and technology4. Globalization in all fields5. Religious differences between nationsWhich is the driving factor for trade between countries is ..... A) 1, 2, and 3. B) 1, 3, and 4. C) 2, 3, and 5. D) 3, 4, and 5. Show Answer Correct Answer: B) 1, 3, and 4. 21. What is an argument supporting free trade? A) Free trade prevents trade wars. B) Free trade secures national defense. C) Free trade protects infant industries. D) None of above. Show Answer Correct Answer: A) Free trade prevents trade wars. 22. All of the following would increase demand for a currency EXCEPT ..... A) Increase in supply in the currency's exchange rate partner. B) Deflation. C) Rising domestic interest rates. D) Decrease in exports. Show Answer Correct Answer: D) Decrease in exports. 23. What is the main benefit of international trade for consumers? A) Access to a larger variety of goods and services. B) Higher wages and job opportunities. C) Lower taxes and government spending. D) Increased government revenue. Show Answer Correct Answer: A) Access to a larger variety of goods and services. 24. Which of the following is an example of transportation and logistics industry? A) Toy manufacturing. B) Freight forwarding. C) Retail shipment processing. D) Software engineering. Show Answer Correct Answer: B) Freight forwarding. 25. Tariffs are different from assigned import quotasin that tariffs will A) Restrict imports. B) Hurt domestic producers of goods facingimport competition. C) Increase the price of imported goods. D) Generate additional revenue for the domesticgovernment. E) Benefit domestic consumers of importedgoods. Show Answer Correct Answer: D) Generate additional revenue for the domesticgovernment. 26. A nation has a deficit in its international balance of trade when ..... A) It buys goods of greater value from other nations that it sells to them. B) It sells goods of greater value to other nations than it buys from them. C) It invests more in other countries that it receives from them. D) Government expenditures exceed tax revenues. Show Answer Correct Answer: A) It buys goods of greater value from other nations that it sells to them. 27. Kochi and Karwar in India are examples of: A) Inland Port. B) Naval Port. C) Out Ports. D) Comprehensive Ports. Show Answer Correct Answer: B) Naval Port. 28. Members do away with duties and other trade barriers-they allow companies to invest freely in each member's country *ex. EU (European Union) A) Free-trade zones. B) Free-trade agreements. C) Non-tariff alliances. D) Common markets. Show Answer Correct Answer: D) Common markets. 29. In India, ..... issues currency notes on behalf of the Central Government. A) Reserve Bank of India (RBI). B) Ministry of Finance. C) Finance Commission. D) None of the above. Show Answer Correct Answer: A) Reserve Bank of India (RBI). 30. When a quota is imposed on a good, A) Domestic consumers gain. B) Domestic workers gain. C) Government budget gains. D) Domestic producers lose. Show Answer Correct Answer: B) Domestic workers gain. ← 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