WorksheetsUNIT 1. Introduction to international trade
Total questions: 13
Worksheet time: 7mins
What is the difference between EXPORTS and IMPORTS?
A) Exports and imports are synonym terms used for domestic trade operations.
B) Exports are goods/services sold to a foreign country and imports goods/services acquired from a foreign country.
C) Imports are goods/services sold, while exports are goods/services brougth in from a foreign country.
D) Imports are only goods, while exports are only services.
Which are the main differences between DOMESTIC and INTERNATIONAL trade?
A) Trade barriers, market reach and growth, cost.
B) Trade barriers, intermediaries, language.
C) Culture, logistic resources, profit margins.
D) Means of transport, protectionism, geography.
What are BARRIERS in trade terms?
A) Taxes imposed on domestic goods and services.
B) Government subsidies industries.
C) Agreements between countries to promote free trade.
D) Government imposed restrictions on the flow of goods and services between countries.
How are all TRADE BARRIERS similar?
A) They all are political.
B) They all are natural, physical features of the Earth.
C) They all aim at blocking trade in some way.
D) They contribute to make trade smoother.
Which definition suits best for TARIFF?
A) A limit on imported items.
B) A tax on imported items.
C) A tax on exported items
D) None of the above.
Which definition suits best for QUOTA?
A) A limit on imported items.
B) A tax on imported items.
C) A tax on import quantitites above the legal limit.
D) Legal incentive for members of WTO to increase their exports of a particular product or service.
What do TARIFFS and QUOTAS have in common?
A) Tariffs and quotas both tax imported goods.
B) Tariffs and quotas are free trade measures against imports.
C) Tariffs and quotas both limit imported goods.
D) Tariffs and quotas are both protectionist measures against imports.
The Harmonized System Code is a...
A) A national system of six-digit code to classify traded products worldwide based on the country of origin.
B) International system of tariffs for imported products coming from a foreign country.
C) An international standardized system of six-digit code to classify traded products worldwide based on the nature, type and purpose of the products.
D) A European system code intended to determine the tariffs and quotas to be applied on imports from third countries.
What is DIRECT DISTRIBUTION in international trade?
A) Selling products through wholesalers.
B) Selling products directly to end customers.
C) Using intermediaries to reach customers.
D) Partnering with local retailers.
A manufacturer decides to use agents to get their product in the market. The producer is using...
A) Direct distribution.
B) No distribution.
C) Intermediaries.
D) Non of above is correct.
Which of the following is a disadvantage of INDIRECT DISTRIBUTION?
A) Extended market reach.
B) Lower profit margins.
C) Access to local expertise.
D) Reduced operational risks.
Which is NOT an advantage of DIRECT DISTRIBUTION?
A) Limited market reach.
B) Control over brand image.
C) Maximized profit margins.
D) Direct customer feedback.
Who typically ends up paying tariffs?
A) Government.
B) Exporters and/or producers.
C) Importers and/or customers.
D) The International Monetary Fund.
