Internation Trade 1

International trade involves:

• A. the exchange across national borders of goods and services

• B. purchasing activites that are regulated by a nation's laws

• C. the payment which is associated with the use of a specific currency

• D. a free trade without controls of government

In china, many garment and textile manufacturers are lcated in Guangzhou. This is an example of:

• A. external economies of scale

• B. internal economies of scale

• C. constant return to scale

• D. constant opportunity cost

3. International trade in this decade is:

• A. simpler because trade environment is more transpareent with lower protectionism and discrimination as a result of trade negotiation

• B. more complicated because multilateral cooperation has become more diverse and global production has more closely linked

• C. less competitive because merger and acquisiton of multinational commpanies have become more popular

• D. more volatile due to the emmergence of international and regional institutuions such as WTO, ASEAN and EU

4. Prof. Andreas. Stoffers flew from Germany to Vietnam to teach the course "international Bussiness" in University of Economics and Bussiness, Vietnam national university _ Hanoi for one semester. This is an example of:

• A. Cross-border supply

• B. Consumption abroad

• C. Commercial presence

• D. Natural person presence

6. Which of the following will be the lowest barrier on imports of 1000 computer:

• A. An ad-volarem of 5% tariff

• B. a specific 30$ tariff

• C. a compound duty of $2 and 5%

• D. a compound duty of $5 and 3%

7. The Heckscher Olin model states that a country will have a comparative advantage in the goods and services whose production is relatively intensive in the ________ with which the country is relatively abundant.

• A. economy scale

• B. technology

• C. opportunity cost

• D. factor of production

8. ________ occurs when cost per unit of output depends on the size of the industry.

• A. The rise in terms of trade

• B. Imperfect competition

• C. Internal economies of scale

• D. External economies of scale

9. In the large exporting country, an export subsidy will

• A. help consumers and raise the overall economic welfare of the exporting country

• B. hurt consumers but raise the overall economic welfare of the exporting country

• C. hurt consumers and lower the overall economic welfare of the exporting country

• D. help consumer economic welfare of the exporting country

10. The infaant theoretical basis for nt industry argument was an import

• A. neo-colonalist theory of international exploitation

• B. Import- substituing industrialisation

• C.historiography of the industry revolution in Western Europe

• D. East - Asian miracle

12. Import Substitution policies make use of:

• A. tariffs that discourage goods from entering a country

• B. quotas applied to goods that are shipped abroad

• C. Production subsidies granted to industries with comparative advantage.

• D. tax breaks granted to industries with comparative advantage.