International Trade Quiz

Which of the following is the nature of international trade according to Marxism?

• A. cooperation

• B. competititon

• C. interdependence

• D. dependence

Which perspective supports the views on international trade as shown in the image?

• A. Liberalism

• B. Mercantilism

• C. Structuralism

• D. Postmodernism

Below are some of the elements of trade agreement except

• A. trade agreements may be bilateral or multilateral

• B. reciprocity

• C. most-favoured nation status

• D. discrimination status

The following are valid reasons for state's interference in international trade except

• A. protection of national prestige

• B. protection of domestic industries

• C. infant-industry argument

• D. revenues

The main reason liberalism rejects the idea of protectionism is because

• A. protectionism encourages inefficiency in the market

• B. protectionism does not really save jobs despite its cost

• C. protectionism promotes retaliation among countries whose products are subject to restrictions

• D. protectionism is too difficult and costly to enforce

Which of the following is not a part of

constructing international trade policy?

• A. Protectionism

• B. Strategic Trade Policy

• C. Autarky

• D. Free Trade Policy

Which of the following is not a non-tariff barrier?

• A. Subsidies

• B. Tariff

• C. Import Quota

• D. Permit and Licensing

Which international trade theory states that a country's comparative advantage in the production of a particular commodity is determined by local availability of resources?

• A. Absolute advantage

• B. Comparative advantage

• C. Factor endownments theory

• D. Heckscher and Ohlin

Absolute advantage theory points out the followings except

• A. superior production capablities of a country

• B. a country can produce particular goods at a lower cost than another country

• C. sees opportunity cost as a factor of analysis in choosing between different options for production diversification

• D. looks at the efficiency of producing a single product

What is product life cycle theory for international trade?

• A. trade between countries takes place because each country has different levels of resource intensity

• B. international trade takes place because countries are at different stages of production levels

• C. trade between countries is determined by the availability of related and supported industries

• D. trade between countries is determined by similar comparative advantage to exchange similar products