International Trade Quiz

What does international trade involve according to the image?

• Exchange of services only

• Exchange of goods only

• Exchange of ideas and technology

• Exchange of goods and services across international boundaries

Which of the following is an advantage of international trade as mentioned in the image?

• Decreased market competition

• Increased dependency on local markets

• Access to larger markets

• Higher costs of production

How does diversifying help a company in international trade?

• It increases the company's local market share only

• It reduces the impact of downturns in local sales

• It limits the company to fewer markets

• It increases the cost of goods sold

What does gaining economies of scale mean in the context of international trade?

• Increasing the number of employees

• Reducing unit costs by producing on a larger scale

• Expanding the company's headquarters

• Decreasing the variety of products

What benefit does greater levels of trade bring to consumers?

• Reduced variety of products

• Increased prices of goods

• Greater variety of products/services

• Lesser quality of services

What is one of the advantages of operating a business on a global level?

• Decreased sales

• Increased profits

• Reduced customer base

• Higher local competition

What does integration with other economies through international trade typically result in?

• Isolation of countries

• Weaker economic ties

• Closer ties between countries

• Decreased national benefits

What is a major disadvantage of increased competition in international trade?

• Guaranteed sales increase

• Higher profit margins

• Lower profit margins due to price competition

• Stable market prices

Which of the following is a cost associated with international trade?

• Reduced advertising needs

• Lower transportation costs

• Increased promotional activities

• Decreased product demand

What challenge is associated with distribution in international trade?

• Easier logistics

• Decreased shipping costs

• Finding reliable transport companies

• Less regulatory compliance