Tutorial Activity 2: MCQ Quiz Section 16

The selling and shipping of raw materials or products to other nations is called _________.

• importing

• exporting

• dumping

• balance of trade

• balance of payment

The type of trade restriction that limits the amount of a particular good that may be imported into a country during a given period of time is _______________.

• tariff

• import quota

• embargo

• currency devaluation

• foreign-exchange control

A partnership with a foreign country that can provide immediate market knowledge and access, reduced risk, and control over product attributes is a(n) ________________.

• multinational enterprise

• economic community

• joint venture

• syndicate

• countertrade

A reduction of the value of a nation’s currency relative to the currencies of other countries is called ___________.

• embargo

• foreign-exchange control

• currency devaluation

• quota

• currency appreciation

Which of the following is a reason to impose trade restrictions?

• To make consumers pay higher prices.

• To equalize the nation’s balance of payments.

• To restrict consumers’ choices.

• To distort or misallocate international resources.

• To create job losses.