WorksheetsInternational Trade 3
Total questions: 18
Worksheet time: 9mins
2. An American computer imports all parts used to produce computers from a Vietnamese company. It uses all those parts to produce computers and then exports back finished computers to that Vietnamese company. This selling activity of the American company is
a. Export
b. Re - export
c. International Processing
d. Switch trade
3. The Ricardian model explains comparative advantage as the result of differences in countries
a. economies of large-scale production
b. relative abundance of various resources
c. labor productivities
d. research and development expenditures
4. Which of the following is NOT the current trend of international trade?
a. The role of developing countries, especially China in international trade, has been increased
b. E - commerce is growing
c. Agricultural products are the most traded commodities
d. Traded products have become diversified and innovated
5. International trade is more complex than domestic trade because
a. International trade is the exchange of tangible and intangible goods
b. International trade focus on real transaction of goods and services in international economy
c. The trade transaction is under the control of the authorities
d. The shipment with various customs and insurance procedures
6. According to H - O theory, if Vietnam has more land per worker, and the UK has more capital per worker, then
a. Vietnam would export product which is land-intensive
b The US would import products which is capital-intensive
c. Both countries would export some of each product
d. Trade would not continue since Vietnam is a smaller country"
8. The effective rate of protection measures:
a. the "true" ad valorem value of a tariff
b. The quota equivalent value of a tariff
c. the efficiency with which the tariff is collected at the customhouse
d. the protection given by the tariff to domestic valued added
9. The gravity model postulates that the value of trade between two countries is ___ other things equal, to the economic size of the two countries, and ___ with the distance between them
a. diminishing, diminishing
b. dependent, proportional
c. proportional, diminishing
d. constant, proportional
10. In a large exporting country, an export subsidy will
a. help consumer 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 but lower the overall economic welfare of the exporting country
d. help consumers but lower economic welfare of the exporting country
11. If the country imposes an import tariff, its welfare can improve if
a. the country is a "small country" rather a "large country"
b. its items of trade improve enough
c. the tariff enhances the welfare of its trading partners
d. its government's tax revenue increases"
12. it is argued that high-tech industries typically generate new technologies but cannot fully appropriate the momercial benefits associated with their real income, the government should
a. tax the high-tech firms
b. subsidize the high-tech firms
c. protect the high-tech firms
d. B & C
13. Which of the following is NOT true?
a. Inter-industry trade occurs in the Heckcher-Odlin model or Ricardian model
b. Inter-industry trade reflects comparative advantage
c. Inter-industry reflects income distribution effects
d. The relative importance of intra-industry trade depends on how similar countries are
14. An important insight of international trade theory is that when countries exchange goods and services with the other
a. is is typically harmful to the technologically lagging countries
b. it is unusually beneficial to both countries
c. it is typically beneficial only to the low wage trade partner countries
d. is tends to the create unemployment in both countries
15. Which of the following is NOT the main cooperation pillar of the ASEAN Community (AEC)?
a. Politics - Security
b. Culture - Society
c. Science - Technology
d. Economics
16. Intra-industry (Thương mại nội ngành) trade will tend to dominate flows when which of the following exists?
a. Large differences between relative country factor availabilities.
b. Small differences between relative country factor availabilities
c. Homogeneous products that cannot be differentiated
d. Constant cost industries
17. Internal economies of Scale:
a. is a comparative advantage in sophisticated technological goods
b. is a function of concentration in the sector
c. cannot form the basis for international trade
d. may be associated with an imperfectly competitive industry
21. The strongest political pressure for a trade policy that results in higher protectionism comes from:
a. domestic workers lobbying for import restriction
b. domestic workers lobbying for export restrictions
c. domestic workers lobbying for free trade
d. domestic consumers lobbying for export restriction
24. The WTO was established by the ___ of the multilateral trade negotiations.
a. Kennedy Round
b. Tokyo Round
c. Uruguay Round
d. Dillion Round
25. International trade in this decade is
a. Simpler because trade environmental is more transparent with lower protectionism and discrimination
b. more complicated because multilateral cooperation has become more diverse, and global production has more closely linked
c. less competitive because merger and acquisition of multinational companies has become more popular
d. more volatile due to the emergence of international and regional institutions such as WTO, ASEAN, and EU
