International Trade Quiz

Trade between two countries can be useful if cost ratios of goods are:

• Equal

• Different

• Undetermined

• Decreasing

Dumping refers to:

• Reducing tariffs

• Sale of goods abroad at a lower price, below their cost and price in their home market

• Buying goods at low prices abroad and selling at higher prices locally

• Expensive goods selling for low prices

International trade and domestic trade differ because of:

• Trade restrictions

• Immobility of factors

• Different government policies

• All of the above

The term Euro Currency market refers to

• The market where the borrowing and lending of currencies take place outside the country of issue

• The countries which have adopted Euro as their currency

• The market in which Euro is exchanged for other currencies

• The international foreign exchange market

The effects of inflation on the price competitiveness of a country's products may be offset by:

Which of the following theories suggests that firms seek to penetrate new markets over time?

• Theory of Comparative Advantage

• Imperfect Market Theory

• None of the above

• Product cycle theory

An __________ is a tax or duty levied on exported commodities.

• Import Tariff

• Free Trade Tariff (FTT)

• Transport Tariff

• Export Tariff

The Phillips curve shows the relationship between inflation and what?

• The rate of growth in an economy

• The rate of price increases

• The balance of trade

• Unemployment

An import tariff is a tax or duty levied on ________ commodities.

In International Trade, IMF stands for ________.

• International Monetary Firm

• International Monetary Fund

• International Market Fund

• International Money Fund