This quiz works best with JavaScript enabled. Home > Finance > Economics > International Economics > International Trade > International Trade – Quiz 99 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 99 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A trading nation's ability to produce something at a lower opportunity cost than that of another trading nation A) Absolute Advantage. B) Comparative Advantage. Show Answer Correct Answer: B) Comparative Advantage. 2. How much is tariff charged due to commitment to eliminate tariffs immediately when CPTPP entries into force? A) 5%. B) 0%. C) 10%. D) Decrease 50% of the recent tariff. Show Answer Correct Answer: B) 0%. 3. ..... provided a series of 'rounds' of negotiations by which tariffs were reduced. A) IBRD. B) GATT. C) IMF. D) NAFTA. Show Answer Correct Answer: B) GATT. 4. What is the primary purpose of the European Union (EU)? A) To promote the military cooperation of European countries. B) To establish a common currency for all member states. C) To promote economic integration and cooperation among European countries. D) To facilitate immigration between member states. Show Answer Correct Answer: C) To promote economic integration and cooperation among European countries. 5. What is "trade deficit" ? A) When a country's imports exceed its exports. B) When a country's exports exceed its imports. C) When a country's imports equal its exports. D) Refering to a positive balance of trade. Show Answer Correct Answer: A) When a country's imports exceed its exports. 6. The full form of WTO is ..... A) World Tariff Organization. B) World Transport Organization. C) World Trade Organization. D) Western Trade Organization. Show Answer Correct Answer: C) World Trade Organization. 7. The Air Waybill is considered "Title to the Goods" A) True. B) False. Show Answer Correct Answer: B) False. 8. What does the term 'small open economy' refer to in the context of Australia? A) Size of economy in terms of natural resources. B) Size of economy in terms of military strength. C) Size of economy in terms of land area. D) Size of economy in terms of population and total production. Show Answer Correct Answer: D) Size of economy in terms of population and total production. 9. A government imposes a limit of 2 million on the number of smartphones imported into the country.Which term is given to this limitation? A) Tariff. B) Ban. C) Embargo. D) Quota. Show Answer Correct Answer: D) Quota. 10. The principal of comparative advantage shows that the benefits of trade rely on: A) Opportunity costs. B) Resource costs. C) Transport costs. D) Marginal costs. Show Answer Correct Answer: A) Opportunity costs. 11. International Product Life Cycle Theory consists of how many stages of evolution? A) FOur. B) Five. C) Three. D) Six. Show Answer Correct Answer: C) Three. 12. What is a trade bloc? A) A group of nations that increase the amount of barriers on all other countries in the world. B) When a country completely isolates itself throught the use of trade barriers. C) A group of countries that reduce trade barriers to create freer trade. D) An agreement to open free trade with anyone but Cuba. Show Answer Correct Answer: C) A group of countries that reduce trade barriers to create freer trade. 13. In most high-income economies, including the United States, goods currently make up ....., while services currently compose ..... A) More than half of total production; less than half of total production. B) Less than half of total production; more than half of total production. C) The merchandise trade balance; the capital trade balance. D) The merchandise trade balance; the retail trade balance. Show Answer Correct Answer: B) Less than half of total production; more than half of total production. 14. What is a potential downside of trade liberalization? A) Limited access to foreign markets. B) Reduced competition among domestic producers. C) Lower prices for consumers. D) Job displacement in certain industries. Show Answer Correct Answer: D) Job displacement in certain industries. 15. The North America Free Trade Agreement was replaced in 2020 by the A) CAMUS. B) USMCA. C) I didn't see it. D) ASEAN. Show Answer Correct Answer: B) USMCA. 16. First person to travel for trade A) Marco Polo. B) Vascodagama. C) Adam Smith. D) None of above. Show Answer Correct Answer: A) Marco Polo. 17. Which of the following is the biggest exporter in the world? A) Japan. B) USA. C) Middle East. D) China. E) EU. Show Answer Correct Answer: D) China. 18. A means of preventing a foreign product or service from freely entering a nation's territory. A) Trade surplus. B) Trade barriers. C) Trade embargo. D) None of above. Show Answer Correct Answer: B) Trade barriers. 19. With international trade, slowly, borders are disappearing and different societies are becoming like a one small village. A) FALSE. B) TRUE. Show Answer Correct Answer: A) FALSE. 20. What action represents a way the federal government can promote business competition? A) Regulating investors. B) Prohibiting monopolies. C) Enforcing tariffs. D) Punishing polluters. Show Answer Correct Answer: B) Prohibiting monopolies. 21. Trade theory helps managers and government policymakers focus on these questions:What products should we import and export? How much should we trade? With whom should we trade? A) True. B) False. Show Answer Correct Answer: A) True. 22. What is the relationship between trade deficits and surpluses and a country's self-interest? A) Trade deficits are always in a country's self-interest. B) Trade surpluses are always in a country's self-interest. C) Trade deficits and surpluses can both be in a country's self-interest. D) Trade deficits and surpluses are never in a country's self-interest. Show Answer Correct Answer: C) Trade deficits and surpluses can both be in a country's self-interest. 23. If the seller agrees to be responsible for the cost of insurance for transportation. What commercial terms must the seller choose as conditions in the sales contract? A) FCA. B) FAS. C) CFR. D) CIP. Show Answer Correct Answer: D) CIP. 24. Which are trade agreements: A) All are true. B) General Agreement on Tariffs and Trade (GATT). C) World Trade Organization (WTO). D) European Union (EU). E) North American Free Trade Agreement (NAFTA). Show Answer Correct Answer: A) All are true. 25. Who focuses their attention on poor people in all countries? A) World Trade Organization. B) World Bank. C) International Monetary Fund. D) None of above. Show Answer Correct Answer: B) World Bank. 26. In 1492, Christopher Columbus set sail with three ships namely, Nina, Pinta, and Santa Maria. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 27. 6/ In the context of dynamic increasing profits, what is the primary focus of a company's strategy? A) Short-term profit maximization. B) Reducing competition. C) Long-term sustainability and innovation. D) Regulatory compliance. Show Answer Correct Answer: C) Long-term sustainability and innovation. 28. Saudi Arabia exports petroleum to Japan. Australia exports apples to Malaysia.Which aspect of international trade is important for this? A) C to fully use the resources. B) D to lower the price of product. C) B to improve quality of product. D) A to increase the purchasing power of people. Show Answer Correct Answer: A) C to fully use the resources. 29. What is the definition of 'International Trade'? A) The buying and selling of goods and services between different countries. B) Exchanging goods and services within a country. C) Is exchanging of goods and services between two parties in return for payment. It can be domestic or international. D) The free movement of people across countries. Show Answer Correct Answer: A) The buying and selling of goods and services between different countries. 30. What does HDI stand for? A) Human Development Index. B) Human Development Income. C) Human Development Index. D) None of above. Show Answer Correct Answer: A) Human Development Index. ← 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