This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 98 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 98 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is an export? A) A good or service that a country buys from another country. B) A good or service that a country sells to another country. C) A good or service that is produced within the same country. D) None of above. Show Answer Correct Answer: B) A good or service that a country sells to another country. 2. How does international trade impact economic growth within a trading nation? A) International trade allows industries within a trading nation to increase market power without losing customers. B) International trade allows a trading nation to limit opportunity costs, making the market more efficient. C) International trade shifts the demand curve of a trading nation outward, increasing the purchasing power of industries. D) International trade shifts the production possibility curve of a trading nation outward by using resources more efficiently. Show Answer Correct Answer: D) International trade shifts the production possibility curve of a trading nation outward by using resources more efficiently. 3. Which trade group promotes the movement of goods and people in South America? A) ASEAN. B) EU. C) Mercosur. D) SADC. Show Answer Correct Answer: C) Mercosur. 4. When one individual, business, or country has the lowest opportunity cost ratio for producing the good or service is known as: A) Trade Surplus. B) Balance of trade. C) Comparative Advantage. D) Absolute Advantage. Show Answer Correct Answer: C) Comparative Advantage. 5. Revenue Tariff is imposed to: A) Promote comparative advantage. B) Shield domestic industries. C) Generate government revenue. D) Restrict international trade. Show Answer Correct Answer: C) Generate government revenue. 6. Which of the following was listed as a good area for Free Trade Zones? A) Borders. B) Government buildings. C) Embassies. D) Seaports. Show Answer Correct Answer: D) Seaports. 7. What is the anti-dumping argument for government intervention in international trade? A) To protect domestic industries. B) To maintain spheres of influence. C) To prevent unfair trade practices. D) To prevent unemployment. Show Answer Correct Answer: C) To prevent unfair trade practices. 8. The type of new product development is..... A) New products that are similar to old products. B) New products that add to existing product lines. C) Expanding new product lines. D) Many products have been added. Show Answer Correct Answer: B) New products that add to existing product lines. 9. The bank issuing an L/C takes primary responsibility for A) Transportation risk. B) Delivery of exported goods. C) Payment on behalf of the applicant. D) Documentary risk. Show Answer Correct Answer: C) Payment on behalf of the applicant. 10. How many Appendices are included in CITES? A) 5. B) 4. C) 2. D) None of the above. Show Answer Correct Answer: D) None of the above. 11. They are situations in which none of the available alternatives seems ethically acceptable. A) Personal ethics. B) Ethical dilemmas. C) Moral obligation. D) None of above. Show Answer Correct Answer: B) Ethical dilemmas. 12. Help importing and exporting businesses conduct their business more efficiently A) World Trade Organization. B) World Bank. C) International Monetary Fund. D) None of above. Show Answer Correct Answer: A) World Trade Organization. 13. When there is not enough of a certian good this is known as? A) Scarcity. B) Goods. C) Economics. D) Services. Show Answer Correct Answer: A) Scarcity. 14. What does the acronym BRICS represent in the context of international business? A) Bilateral Regional Investment Cooperation System. B) Brazilian, Russian, Indian, Chinese, and South African economies. C) Business-Related International Currency System. D) British, Russian, Indonesian, Chinese, and Saudi Arabian trade pact. Show Answer Correct Answer: B) Brazilian, Russian, Indian, Chinese, and South African economies. 15. Over the short term, which of the following is not an advantage to free trade? A) Greater choice of products for consumers and lower prices. B) Higher wages for domestic workers and greater employment. C) Greater competition and more efficiency in production. D) Benefits for producers of economies of scale arising from the ability to sell in other markets. Show Answer Correct Answer: B) Higher wages for domestic workers and greater employment. 16. What is the key to trade? A) Specialization. B) Wealth. C) Self-Sufficiency. D) Technology. Show Answer Correct Answer: A) Specialization. 17. The general purpose of tariffs is: A) Source of income. B) Coercive instrument. C) Protect domestic industry. D) All true. Show Answer Correct Answer: D) All true. 18. When a government allows raw materials and other intermediate products to enter a country duty free, this generally results in a(an) A) Effective tariff rate less than the nominal tariff rate. B) Nominal tariff rate less than the effective tariff rate. C) Rise in both nominal and effective tariff rates. D) Fall in both nominal and effective tariff rates. Show Answer Correct Answer: B) Nominal tariff rate less than the effective tariff rate. 19. This is a tax on imports that is used to increase price of foreign products. A) Embargo. B) Subsidy. C) Tariff. D) Quota. Show Answer Correct Answer: C) Tariff. 20. The first principle that suggest trade as an economic activity is that A) Nation has unlimited wants and desires. B) Nation is not self-sufficient. C) We live in a world of scarcity. D) We determine our own life. Show Answer Correct Answer: C) We live in a world of scarcity. 21. What is the price of one nation's currency in terms of another nation's currency called? A) Discount rate. B) Monetary policy. C) Fiscal policy. D) Exchange rate. Show Answer Correct Answer: D) Exchange rate. 22. The horizontal axis is for book production and the vertical axis is for pizza production. If the Malaysia's' production possibility frontier was flatter to the book axis, whereas Singapore was steeper, we can say: A) Malaysia has a comparative advantage in book production. B) Singapore has a comparative advantage in book production. C) Not enough information is given. D) None of above. Show Answer Correct Answer: A) Malaysia has a comparative advantage in book production. 23. Which of the following is NOT true about the export supply curve? A) It intersects the vertical axis at the foreign equilibrium price in autarky equilibrium. B) It is steeper than the domestic supply curve in the exporting country. C) It is flatter than the domestic supply curve in the exporting country. D) It describes the excess of foreign supply over foreign demand. Show Answer Correct Answer: B) It is steeper than the domestic supply curve in the exporting country. 24. Which of these answers is correct to admit that the international trade bringing change to nation states? A) Mercantilism. B) Liberalism. C) Marxism. D) All of the above. Show Answer Correct Answer: D) All of the above. 25. Examples of ownership advantage include which of the following? A) Liability. B) Intellectual property. C) Prestige. D) Benefits of outsourcing. Show Answer Correct Answer: B) Intellectual property. 26. Who has the power to create tariffs? A) State governments. B) Federal government. C) Factory owners. D) Store owners. Show Answer Correct Answer: B) Federal government. 27. It is estimated that in 2016 the Olympic Games in Rio, Brazil attracted over 600 000 foreign visitors.What is likely to have been the result of this number of visitors? A) A depreciation of Brazil's currency. B) A fall in Brazil's rate of inflation. C) An increase in the Brazilian government's budget deficit. D) A reduction in Brazil's deficit on the current account of its balance of payments. Show Answer Correct Answer: D) A reduction in Brazil's deficit on the current account of its balance of payments. 28. In 1974, the U.S. embargoes all products from what company? The embargo was lifted 20 years later in order to re-establish trade relations between the two countries. A) Vietnam. B) China. C) Iran. D) South Africa. Show Answer Correct Answer: A) Vietnam. 29. Countries will export goods and services that they can produce at lower costs. This is called- A) Monopoly. B) Capitalism. C) Oligarchy. D) Comparative advantage. Show Answer Correct Answer: D) Comparative advantage. 30. Which of the following statements is not true about trade protectionism? A) It encourages self-sufficiency. B) It helps grow infant industries. C) It reduces unemployment in the short term. D) It encourages producers to produce goods where they have a comparative advantage. Show Answer Correct Answer: D) It encourages producers to produce goods where they have a comparative advantage. ← 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