International Trade Quiz

Define import.

• The act of bringing goods or services into a country from abroad for sale.

• The act of sending goods or services to another country for sale.

• The exchange rate between two currencies.

• The cost associated with transporting goods across international borders.

Define export.

• The act of sending goods or services to another country for sale.

• The act of bringing goods or services into a country from abroad for sale.

• The exchange rate between two currencies.

• The cost associated with transporting goods across international borders.

How do you calculate exchange rates?

• By determining the cost of one currency in terms of another currency.

• By adding the value of imports and exports.

• By calculating the difference between the inflation rates of two countries.

• By using the interest rates set by the central banks of two countries.

What does SPICED stand for?

• Strong Pound Imports Cheaper Exports Dearer.

• Strong Performance In Currency Exchange Dynamics.

• Special Pricing In Economic Development.

• Strategic Policies In Economic Diversification.

What does WPIDEC stand for?

• Weak Pound Imports Dearer Exports Cheaper.

• World Pricing Index and Economic Conditions.

• Weak Performance In Domestic Economic Circumstances.

• Worldwide Policies In Economic Diversification.

What does a strong pound mean?

• UK business which exports products

• Foreign competitors

• UK businesses which import products

• UK businesses which sell products to the home market

What does a weak pound mean?

• UK business which exports products

• Foreign competitors

• UK businesses which import products

• UK businesses which sell products to the home market

Complete the acronym SPICED.

• Strong Pound Imports Cheaper Exports Dearer

• Strong Pound Increases Cheaper Exports Demand

• Strong Pound Imports Costly Exports Decrease

• Strong Pound Imports Cheaper Exports Demand

Complete the acronym WPIDEC.

• Weak Pound Imports Dearer Exports Cheaper

• Weak Pound Increases Demand Exports Cheaper

• Weak Pound Imports Decrease Exports Costly

• Weak Pound Imports Demand Exports Cheaper

A UK business sells its product in Europe. The price per unit is £26.00. The exchange rate between the pound and the euro is £1 = €1.25. What would be the cost, in euros, of 425 units?

• €452.25

• €531.25

• €11,050.00

• €13,812.50