WorksheetsInternation Trade 1
Total questions: 23
Worksheet time: 12mins
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.
13. Which of the following is NOT true?
A. Liberalisation of trade in ASEAN was officially realized when ASEAN countries signed the ASEAN trade in goods agreement (ATIGA)
B. The objectives of CEPT/ AFTA were to reduce tariffs among members to 0.5%, phase out non-taiffs bariers and cooperate in the filed of customs.
C. AEC was officially launched on 31st December 2015 under the Kualalumpua Declaration 2015.
D. ASEAN was created on 08/08/1967 with 5 founders including Singapore, Thai Land, Malaysia, Indonesia, and Philippines.
14. Which of the following is not a council of WTO?
A. Council of trade in goods
B. Council for trrade in services
C. Council for trade -related investment measure
D. Council for trade- related aspects of intellectual property right.
15. Vietnam can produce 1 kilo of coffee in 10 hours or 1 kilo of noodles in 4 hours. Laos can produce 1 kilo of coffee in 15 hours or 1 kilo of noodles in 10 hours. According to Ricardian theory , which statement is correct?
A. Vietnam has comparative advantage in producing noodles.
B. Laos has a comparative advantages is producing noodles
C. The opportunity cost of producing a kilo of noodles in vietnam is higher than that of Laos.
D. Vietnam tends to export coffee.
16. If a good is imported into a large country H from country F, then the imposition of an import tariff in country H:
A. raise the price of the good in both countries
B. raise the price in country H and cannot affect its price in country F.
C. lowers the price of the good in both countries
D. raises the price of the good in H and lowers it in F.
17. Suppose that there are two factors, capital and land, and that Russia is relatively land endowed while the UK is relatively capital-endowed. According to Heckcher_Olin model,
A. British landowners should support Russia-UK free trade
B. British capitalists should support Russia-UK free trade
C. All capitalists in both countries should support free trade
D. All landowners in both countries should support free trade.
18. A possilble problem encountered when immplementing an "infant industry" tariffs is that
A. domestic consumers will purchase the foreign good regardless of the tariff.
B. The infant industry may never "mature".
C. Most industries require tariff protection when they are mature
D. the tariff may hurt the industry's domestic sales.
19. What is NOT true about the WTO?
A. Established on 1/1/1995, WTO currently has 164 members
B. Non-discrimination is one of the key principles of WTO
C. Doha- Round is the latest round of trade negotiation among WTO members
D. GATS , which was established by a multilateral treaty of 23 nations, was the predecessor of WTO.
20. Which of the following policies permits a specified quantity of goods to be imported at one tariff rate and a higher tariff rate to imports above this quantity?
A. import tariff
B. voluntary exports restrain
C. Tariff-rate quota
D. Ad volarem tariff
21. An ad- valorem tariff
A. helps to eleminate the trade frauud which is related to the declared value of imported goods
B. is less transparent than a specific tariff because it leads to distortion in relative prices between the taxed goods.
C. provides a more stable protection to domestic producers when a nation faces with inflation
D. is applied to goods originating from the WTO member countries.
22. Which of the following is NOT true about AEC 2015
A. Pillar 1 of the AEC is a single production base and market. Pillar 1 refer to the free movement of services, free movement of capital and investment, and free movement of unskilled workers
B. Pillar 2 includes competition policy, comsumer protection and e-commerce development
C. Pillar 3 of the AEC is an equitable economic development. Pillar 3 includes the development of small and medium enterprises and ASEAN integration innitiatives .
D. Pillar 4 of AEC is "integration into global economy". Pillar 4 refers to economic cooperation with extra-region partners and increase ASEAN participation in the global supply chain.
23. The WTO was established in the ______ of multilateral trade negotiation.
A. Kennedy Round
B. Tokyo Round
C. Uruguay Round
D. Dillon Round
24. Regarding the product "orange: what is a SPS measure among the following?
A. The minimum size of the orange
B. The packing and labeling process
C. The use of pesticide before harvesting
D. The imported stamp on the orange.
25. The imperfect competition is the principal justification for
A. import- substitution polocies
B. export - oriented policies
C. industrial policies
D. strategic trade policies
