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Worksheets

KTQT c23

Total questions: 177

Worksheet time: 2hrs 44mins

Name
Class
Date
1.

According to the development-level classification, China belongs to which group?

a)

A developed, high-income economy

b)

A developing, middle-income economy

c)

A developing, low-income economy

d)

A developed economy

2.

According to the classification by economic system, Vietnam is categorized as having:

a)

A developed market economy

b)

A market economy

c)

A centrally planned economy

d)

A transition economy

3.

According to the classification by economic model, China is grouped as:

a)

A developed market economy

b)

A market economy

c)

A centrally planned economy

d)

A transition economy

4.

The world’s major economic centers today are:

a)

North America, Northeast Asia, and the EU

b)

The United States, Japan, and China

c)

The United States, India, and the EU

d)

The United States, China, and the EU

5.

A knowledge-based economy develops:

a)

Primarily along the extensive margin

b)

Primarily along the intensive margin

c)

Along both the extensive and intensive margins

d)

In an unsustainable manner

6.

In a knowledge-based economy, science and technology are characterized as:

a)

Clean and energy-intensive

b)

Clean and labor-intensive

c)

Clean and cost-saving in production

d)

Not clean but cost-saving in production

7.

The key actors in a knowledge economy are workers who are:

a)

Untrained

b)

Trained

c)

In command of science and technology

d)

Both trained and in command of science and technology

8.

To create knowledge products, investment should be directed to:

a)

Science and technology

b)

Education and training

c)

Information technology

d)

Both science & technology and education & training

9.

In a material (goods-based) economy, the sectors contributing the largest share of GDP are:

a)

Services and high-tech industries

b)

Agriculture and services

c)

Services and manufacturing

d)

Agriculture and manufacturing

10.

In a material economy, the factor group with the greatest impact on economic growth is:

a)

Technology and labor

b)

Labor and natural resources

c)

Technology and natural resources

d)

Technology and capital

11.

In a knowledge-based economy, the sectors accounting for the largest share of GDP are:

a)

High-tech services

b)

Agriculture and services

c)

Services and manufacturing

d)

Agriculture and manufacturing

12.

Products of a material economy are characterized by:

a)

High knowledge content

b)

High value

c)

Being raw or semi-processed

d)

Being raw or semi-processed with low knowledge content

13.

Products of a knowledge economy are characterized by:

a)

High knowledge content and high value

b)

Raw or semi-processed with high value

c)

High knowledge content and low value

d)

Raw or semi-processed with low value

14.

Under the shift toward a knowledge economy, the structural change in GDP of advanced economies is:

a)

The share of material production declines, while the share of services rises

b)

The share of material production increases, while the share of services declines

c)

The industrial (manufacturing) share falls, while the services share rises

d)

The agricultural share falls, while the industrial and services shares rise

15.

When an economy is closed , it wil

a)

Produce goods in which it has a comparative advantage

b)

Produce goods in which it does not have a comparative advantage

c)

Produce a mix of goods with and without comparative advantage

d)

Produce only the goods for which there is domestic demand

16.

According to David Ricardo, a country’s comparative advantage affects:

a)

International production specialization

b)

The international division of labor

c)

Both international production specialization and the international division of labor

d)

None of the above

17.

The main drivers propelling globalization are:

a)

International economic organizations, governments, and international (multinational) companies

b)

International financial institutions, governments, and international (multinational) companies

c)

International organizations, governments, and national (domestic) companies

d)

International organizations, governments, and international (multinational) companies

18.

When an economy is closed:

a)

Development relies primarily on internal resources

b)

Goods are produced mainly to serve domestic demand

c)

Exports are promoted

d)

Development relies primarily on internal resources and goods are produced to serve domestic demand

19.

Manifestations of economic globalization include:

a)

Production activities organized on a global scale

b)

Investment activities expanding worldwide

c)

Trade activities expanding worldwide

d)

Production, investment, and trade all organized on a global scale

20.

In the context of economic globalization, globally organized production is reflected in

a)

The development of the international division of labor

b)

The development of production specialization

c)

Goods exchange occurring on a global scale

d)

The development of both the international division of labor and international production specialization

21.

Globalization will:

a)

Have positive effects on each country’s economic development

b)

Have negative effects on each country’s economic development

c)

Have both positive and negative effects on each country’s economic development

d)

Have no effect on each country’s economic development

22.

A closed national economy develops based on:

a)

Domestic resources

b)

Foreign resources

c)

Domestic resources with negligible use of foreign resources

d)

A combination of domestic and foreign resources

23.

An open national economy develops based on:

a)

Domestic resources

b)

Foreign resources

c)

Domestic resources with negligible use of foreign resources

d)

A combination of domestic and foreign resources

24.

Closing the national economy will make the domestic economy:

a)

Grow very rapidly

b)

Grow very slowly with the risk of falling behind

c)

Suffer many adverse effects from global economic fluctuations

d)

Become dependent on foreign countries

25.

Opening the national economy will make the domestic economy:

a)

Fall behind the global economy

b)

Not dependent on foreign countries

c)

Immune to adverse effects from global economic fluctuations

d)

Dependent on foreign countries

26.

A manifestation of opening the national economy is:

a)

Opening internally

b)

Opening externally

c)

Opening externally first, then internally

d)

Opening both internally and externally

27.

An advantage of a closed-economy strategy is:

a)

Faster economic growth

b)

Reduced dependence on the outside world

c)

Avoiding the risk of falling behind

d)

Leveraging external advantages

28.

An advantage of an open-economy strategy is:

a)

Minimizing adverse effects from global economic fluctuations

b)

Limiting dependence on foreign countries

c)

The ability to tap foreign resources

d)

Reducing competitive pressure

29.

A disadvantage of a closed-economy strategy is:

a)

Avoiding the risk of falling behind

b)

Minimizing adverse effects from global economic fluctuations

c)

Failing to leverage external advantages

30.

A disadvantage of an open-economy strategy is:

a)

Avoiding the risk of falling behind

b)

Increased competitive pressure

c)

Immunity to adverse global economic fluctuations

d)

The ability to leverage foreign resources

31.

Advanced industrial countries adopt an open-economy strategy in order to:

a)

Seek factors for extensive (scale-expanding) growth

b)

Seek factors for intensive (productivity-enhancing) growth

c)

Exploit domestic resources inefficiently

d)

Seek factors for both extensive and intensive growth

32.

Vietnam pursues an open-economy strategy in order to:

a)

Expand economic relations with other countries

b)

Expand economic relations with other countries and with international economic organizations

c)

Expand relations with non-economic organizations

d)

Expand political relations with other countries

33.

The trend of opening a national economy will:

a)

Have positive effects on a country’s economic development

b)

Have negative effects on a country’s economic development

c)

Have both positive and negative effects on a country’s economic development

d)

Have no effect on a country’s economic development

34.

The opening-up objective of developing countries is to leverage external advantages in:

a)

Leverage external advantages in capital

b)

Leverage external advantages in science and technology

c)

Leverage external advantages in management experience

d)

Leverage external advantages in science and technology and in management experience

35.

Economic globalization is accelerating because of:

a)

The growth of international (multinational) companies

b)

The growth of economic organizations

c)

The growth of cultural organizations

d)

The growth of social organizations

36.

National organizations participating in globalization will:

a)

Expand economic exchange

b)

Expand cultural exchange

c)

Expand social exchange

d)

Expand economic, cultural, and social exchange

37.

The knowledge economy develops primarily based on the stock of knowledge and modern science & technology, with knowledge workers as its main economic actors

a)

True

b)

False

38.

A prominent feature of the knowledge economy is high and sustainable economic growth, efficient production and consumption, and the rational, economical use of natural resources.

a)

True

b)

False

39.

Products of the material (goods-based) economy have a high degree of processing but low value.

a)

True

b)

False

40.

Products of the knowledge economy have high knowledge content and high value.

a)

True

b)

False

41.

High technology and services account for a large share of GDP in developing countries.

a)

True

b)

False

42.

Globalization makes all aspects of human life less safe.

a)

True

b)

False

43.

Economic globalization is the expansion of exchanges in all fields—economy, culture, politics, and society.

a)

True

b)

False

44.

Vietnam’s strategy of opening the economy will reduce competitive pressure on domestic enterprises.

a)

True

b)

False

45.

If Vietnam adopts a strategy of closing the economy, it will give domestic enterprises greater motivation to develop.

a)

True

b)

False

46.

The objective of advanced countries in implementing an open-economy strategy is to exploit external advantages to achieve growth both extensively and intensively.

a)

True

b)

False

47.

Classification of economies by level of development is based on data for

(a)  

48.

By (a)   , Viet Nam is a transition economy

49.

The world economy tends to shift from growth along the ....... to growth along the ......

(a)  

50.

In a knowledge economy, investment capital is increasingly concentrated in science and technology and

(a)  

51.

Both the material economy and the knowledge economy must rely on the four basic factors of production: natural resources, labor, capital, and

(a)  

52.

Products of the material economy are characterized by high knowledge content and (a)   value.

53.

Economic globalization takes place in the following domains:

(a)  

54.

companies are among the actors that drive the process of globalization

(a)  

55.

Economic globalization is propelled by three factors: the growth of multinational companies, governments’ opening-up policies, and the development of

(a)  

56.

Opening the national economy means developing based on the reasonable combination of both ..... and .....

(a)  

57.

Countries that expand exchanges across all fields—economy, culture, politics, and society—are exhibiting the trend of

(a)  

58.

International trade is the exchange of:

a)

Capital

b)

Goods, Services

c)

Labor

d)

Science and Technology

59.

The parties participating in international trade are:

a)

Located within the same country

b)

Located within the same locality

c)

Located in different countries

d)

Of the same nationality

60.

International trade takes place in

a)

Regional markets

b)

The world market

c)

The export country’s market

d)

Regional markets, the world market, and the export country’s marke

61.

Means of payment that can be used in international trade:

a)

Hard currencies of the exporting and importing countries

b)

Hard currencies

c)

The exporting country’s currency

d)

The importing country’s currency

62.

The main actors in international trade are:

a)

Firms and governments

b)

Non-governmental organizations

c)

Social organization

d)

Political organizations

63.

According to the World Trade Organization (WTO), how many modes of supplying services internationally are there

a)

3

b)

4

c)

5

d)

6

64.

The currency chosen to express (denominate) value internationally is:

a)

A hard, fully convertible currency

b)

Any convertible currency

c)

The currency of the largest exporting country

d)

The currency of the largest importing country

65.

Under sales terms, the types of prices include:

a)

FOB, CIF

b)

Posted prices on exchanges

c)

Auction prices, tender (bid) prices

d)

Reference prices

66.

Factors influencing international prices:

a)

Monopoly factors

b)

Competitive factors

c)

The value of the currency in which price is denominated

d)

Monopoly, competition, and the value of the pricing currency

67.

An increase in the world market price of a traded item will affect exporters in the long run as:

a)

Beneficial

b)

Adverse

c)

Both beneficial and adverse

d)

No effect

68.

A decrease in the world market price of a traded item will affect exporters in the long run as:

a)

Beneficia

b)

Adverse

c)

Both beneficial and adverse

d)

No effect

69.

An increase in the world market price of a traded item will affect importers in the short run as:

a)

Beneficial

b)

Adverse

c)

Both beneficial and adverse

d)

No

70.

A decrease in the world market price of a traded item will affect international investment as:

a)

Beneficial

b)

Adverse

c)

Both beneficial and adverse

d)

No effect

71.

An increase in the world market price of a traded item will affect international investment by:

a)

Increasing investment

b)

Decreasing investment

c)

Possibly increasing or decreasing investment

d)

No impact

72.

A decrease in the world market price of a traded item will affect international investment by:

a)

Increasing investment

b)

Decreasing investment

c)

Possibly increasing or decreasing investment

d)

No impact

73.

Factors influencing the foreign exchange rate include:

a)

The country’s economic growth rate

b)

The growth rate, psychological (sentiment) factors, and the balance-of-payments position

c)

Psychological (sentiment) factors

d)

The balance-of-payments position

74.

An increase (appreciation) in the exchange rate affects international trade:

a)

. Only positively

b)

Only negatively

c)

Both positively and negatively

d)

No effect

75.

A decrease (depreciation) in the exchange rate affects international trade:

a)

Only positively

b)

Only negatively

c)

Both positively and negatively

d)

No effect

76.

A rapid increase (appreciation) in the exchange rate affects international investment by:

a)

Attracting long-term foreign and domestic investment

b)

Limiting foreign investment into the country in the long run

c)

No effect

d)

Limiting foreign investment into the country in the short run

77.

A decrease (depreciation) in the exchange rate affects international investment by:

a)

Attracting foreign investment into the country in the long run

b)

Limiting foreign investment into the country in the short run

c)

Attracting foreign investment into the country in the short run

d)

No

78.

VTV’s purchase of the broadcasting rights to “Who Wants to Be a Millionaire?” from Russia’s OPT1 falls under which mode of supply?

a)

Supply of services through cross-border movement

b)

Consumption of services abroad

c)

Commercial presence

d)

Presence of natural persons

79.

Vietnamese students going overseas for study fall under which mode of supply?

a)

Consumption of services abroad

b)

Supply of services through cross-border movement


c)

Commercial presence

d)

Presence of natural persons

80.

When competition among sellers is stronger than competition among buyers, the international price tends to:

a)

Increase

b)

Decrease

c)

Remain unchanged

d)

Either increase or decrease

81.

When competition among buyers is stronger than competition among sellers, the international price tends to:

a)

Increase

b)

Decrease

c)

Remain unchanged

d)

Either increase or decrease

82.

When a country’s balance of payments is in surplus, the exchange rate tends to:

a)

Be stable

b)

Increase

c)

Decrease

d)

Either increase or decrease

83.

When a country’s balance of payments is in deficit, the exchange rate tends to:

a)

Be stable

b)

Increase

c)

Decrease

d)

Either increase or decrease

84.

When domestic inflation is higher than foreign inflation, the exchange rate tends to:

a)

Be stable

b)

Increase

c)

Decrease

d)

Either increase or decrease

85.

When the public tends to hoard foreign currency, the exchange rate tends to:

a)

Be stable

b)

Increase

c)

Decrease

d)

Either increase or decrease

86.

In the short run, a rise in the exchange rate within certain bounds will make:

a)

Exports worse off, imports better off

b)

No effect on exports or imports

c)

Exports better off, imports worse off

d)

Exports unaffected, imports better off

87.

In the short run, a fall in the exchange rate within certain bounds will make:

a)

Exports worse off, imports better off

b)

Exports and imports unchanged

c)

Exports better off, imports worse of

d)

Exports worse off, imports unaffected

88.

The Most-Favored-Nation (MFN) treatment requires parties in trade relations to grant terms that are:

a)

Less favorable than those granted to other countries

b)

More favorable than those granted to other countries

c)

No less favorable than those granted to other countries

d)

Exactly equal to those granted to other countries

89.

The MFN regime is characterized by

a)

No binding nature, no piggy-back effect

b)

Binding nature, with a piggy-back effect

c)

No binding nature, with a piggy-back effect

d)

Binding nature, without a piggy-back effect

90.

The preferential terms granted under MFN treatment include:

a)

Tariffs

b)

Fees/charges

c)

Administrative procedures

d)

Dues/levies

91.

National Treatment (NT) aims to ensure non-discrimination between:

a)

Foreign goods among themselves

b)

Goods and business operators at home versus abroad

c)

Domestic goods and domestic business operators among themselves

d)

Domestic goods among themselves

92.

The preferences under National Treatment (NT) that parties grant each other include:

a)

Internal taxes

b)

Domestic fees and charges

c)

Administrative procedures

d)

Internal taxes, fees/charges, and administrative procedures

93.

The purpose of National Treatment is for parties to:

a)

Grant ever-increasing preferences to each other

b)

Grant ever-decreasing preferences to each other

c)

Practice discrimination

d)

Ensure non-discrimination

94.

The fundamental principles in international trade include:

a)

Reciprocity

b)

Non-discrimination

c)

Predictability

d)

Transparency

95.

Granting one another treatment no less favorable than that accorded to any other country is an expression of:

a)

The principle of reciprocity

b)

The MFN regime

c)

The National Treatment regime

d)

The principle of transparency

96.

According equal treatment to foreign goods and suppliers as to domestic goods and suppliers is an expression of:

a)

The principle of reciprocity

b)

The MFN regime

c)

The National Treatment regime

d)

The principle of transparency

97.

The purpose of the MFN (Most-Favored-Nation) regime is to:

a)

Restrict the development of international trade

b)

Practice discrimination

c)

Practice discrimination and restrict the development of international trade

d)

Ensure non-discrimination

98.

The purpose of the NT (National Treatment) regime is to:

a)

Restrict the development of international trade

b)

Practice discrimination

c)

Practice discrimination and restrict the development of international trade

d)

Ensure non-discrimination

99.

When a country adopts a protectionist trade policy, it:

a)

May import inputs at low prices

b)

May import goods at low prices

c)

Can protect goods that are not yet competitive

d)

Will have a more plentiful and diverse range of goods

100.

A free-trade policy is a trade policy under which the state:

a)

Closes the domestic market

b)

Increases the use of tariff barriers

c)

Implements the principle of non-discrimination

101.

A protectionist trade policy is a policy under which the state:

a)

Closes the domestic market to goods that are not yet competitive

b)

Gradually reduces tariff and non-tariff barriers

c)

Implements free international exchange of goods

d)

Implements the principle of non-discrimination

102.

Implementing a free-trade policy makes the domestic goods market:

a)

Less diverse, with consumers benefiting

b)

More diverse, with consumers benefiting

c)

Less diverse, with consumers not benefiting

d)

More diverse, with consumers not benefiting

103.

A country typically applies a free-trade policy when:

a)

The world market is volatile

b)

The world market is stable

c)

The world market is stable and trade relations with partners are friendly

d)

Trade relations with partners are unfriendly

104.

Implementing a protectionist trade policy makes the domestic goods market:

a)

Less diverse, with consumers benefiting

b)

More diverse, with consumers benefiting

c)

Less diverse, with consumers not benefiting

d)

More diverse, with consumers not benefiting

105.

The objective of ensuring non-discrimination is a purpose of:

a)

The MFN regime

b)

The National Treatment regime

c)

Both the MFN and National Treatment regimes

d)

The principle of reciprocity

106.

A country should adopt a protectionist trade policy when:

a)

The world market is highly volatileThe world market is highly volatile

b)

The economy is sufficiently strong

c)

The world market is stable

d)

Trade relations with partners are friendly

107.

Which of the following measures belongs to the group of financial barriers?

a)

Export bans

b)

Domestic taxes

c)

Quotas

d)

Export licensing

108.

Which of the following measures belongs to the group of export-support measures?

a)

Domestic-currency devaluation

b)

Tariffs

c)

Quotas

d)

Deposit requirements

109.

Which of the following measures belongs to the group of export-support measures?

a)

Technical standards in trade

b)

Export credit

c)

Domestic taxes

d)

Import–export licensing

110.

Under the WTO Agreement on Subsidies and Countervailing Measures (ASCM), which form of export subsidy is prohibited?

a)

State support tied to export performance

b)

State support for disaster-stricken regions

c)

State support for R&D in technology

d)

State support for trade promotion

111.

Which of the following measures belongs to the group of non-financial (non-tariff) barriers?

a)

Import duties

b)

Domestic taxes

c)

Import deposit requirements

d)

Technical standards in trade

112.

Which of the following measures belongs to the group of financial, non-tariff barriers?

a)

Export duties

b)

Domestic taxes

c)

Import duties

d)

Technical standards in trade

113.

Applying a tariff to regulate exports of a good will cause the quantity of that good exported to:

a)

Increase

b)

Decrease

c)

Possibly increase or decrease

d)

Remain unchanged

114.

Applying a quota to regulate the import or export of a good will cause the quantity of that good to:

a)

Increase

b)

Decrease

c)

Possibly increase or decrease

d)

Remain unchanged

115.

Tariffs may be applied for the purpose of:

a)

Developing international trade

b)

Protecting consumers

c)

Protecting domestic production

d)

Combating trade fraud

116.

The import deposit ratio depends on:

a)

The degree of state protection for each goo

b)

The value of the good

c)

Relations with the exporting country

d)

The volume of the good

117.

One of the main contents of a trade agreement is provisions on:

a)

Increasing trade barriers

b)

Protecting the domestic market

c)

Settling trade disputes

d)

Restricting imports

118.

The parties to a trade agreement are:

a)

Governments and enterprises

b)

Enterprises

c)

Governments

d)

Individuals

119.

A protective tariff shields domestic production because tariffs can:

a)

Reduce the price of domestically produced goods

b)

Increase the price of imported goods

c)

Increase the price of domestically produced goods

d)

Reduce the price of imported goods

120.

An import deposit is a measure whereby the importing country requires the importer to place a deposit in foreign currency at a commercial bank:

a)

Before importing the goods

b)

After importing the goods

c)

While importing the goods

d)

At any time

121.

When using the import deposit measure to regulate import quantity, the state adjusts the

a)

Import tariff

b)

Price of imported goods

c)

Exchange rate

d)

Deposit ratio

122.

A state-imposed maximum limit on the quantity (or value) of goods permitted to be imported or exported during a period is the measure of:

a)

Tariffs

b)

Import deposits

c)

Monetary instruments

d)

Quotas

123.

Which group of countries sets high and stringent requirements/technical standards?

a)

Developed countries

b)

Developing countries

c)

Least-developed countries

d)

Newly industrialized countries (NICs)

124.

Which measure is not a financial barrier in international trade?

a)

Quotas

b)

Tariffs

c)

Domestic taxes

d)

Import deposit requirements

125.

Which measure is implemented with the objective of developing international trade?

a)

Concluding (signing) trade agreements

b)

Financial measures

c)

Technical measures

d)

Administrative and legal measures

126.

In 2004, the United States banned imports of processed chicken products from Thailand. Which measure did the U.S. apply in international trade?

a)

Quantitative restrictions

b)

Technical barriers

c)

Import ban

d)

Tariffs

127.

In May 2019, nine consignments of Vietnamese seafood were rejected upon entry into the EU for failing to meet EU food safety requirements. Which measure did the EU apply in international trade?

a)

Import restriction

b)

Tariffs

c)

Import ban

d)

Technical measures in trade

128.

Which non-financial measure reflects the highest level of protection?

a)

Quantitative restrictions

b)

Technical measures

c)

Import ban

d)

Quotas

129.

The application of which measure in international trade depends heavily on a country’s level of development?

a)

Licensing and quotas

b)

Concluding trade agreements

c)

Tariffs

d)

Technical measures in trade

130.

Which measure is a form of temporary trade protection?

a)

Quotas

b)

Dumping of goods

c)

Domestic taxes

d)

Import deposit requirements

131.

Developing countries implement only protectionist trade policies.

a)

True

b)

False

132.
  • Developed countries implement only free-trade policies.

a)

True

b)

False

133.

The MFN regime gives rise to a piggyback/free-rider effect.

a)

True

b)

False

134.

Country A grants tariff preferences to Country B, and Country A also grants similar preferences to Country C; this reflects the MFN regime.

a)

True

b)

False

135.

The timetable for opening the domestic market can be applied uniformly to all product categories.

a)

True

b)

False

136.

When a limited/proportionate protectionist policy is implemented, the use of foreign currency becomes more rational and economical.

a)

True

b)

False

137.

The trend toward applying technical barriers to trade will decrease in the future.

a)

True

b)

False

138.

Under import deposit measures, for goods the state seeks to restrict, the required deposit ratio is set higher.

a)

True

b)

False

139.

Domestic taxes do not contribute to the regulation of international trade.

a)

True

b)

False

140.

Tariffs are instruments for discriminatory treatment in trade relations and can exert pressure on partners during negotiations.

a)

True

b)

False

141.

Green-box subsidies are direct, trade-distorting subsidies.

a)

True

b)

False

142.

Export subsidies are supports provided by private parties to exporting producers and traders.

a)

True

b)

False

143.

Signing international trade agreements is a measure intended to restrict international trade

a)

True

b)

False

144.

Export credit is one of the barriers to international trade

a)

True

b)

False

145.

When implementing a protectionist trade policy, applying technical barriers is considered WTO-consistent (within TBT/SPS rules).

a)

True

b)

False

146.

International auction is a special method of selling, while international tendering is a special method of buying.

a)

True

b)

False

147.

In international auctions, prices tend to rise; conversely, in international tenders, prices tend to fall.

a)

True

b)

False

148.

When the world price falls, exporters can still increase profits.

a)

True

b)

False

149.

Importers should choose to import on CIF terms.

a)

True

b)

False

150.
  • Exporters should choose to export on CIF terms

a)

True

b)

False

151.

Exporters should choose to export on FOB terms

a)

True

b)

False

152.

When the exchange rate decreases (depreciation), it has only positive effects on international trade

a)

True

b)

False

153.

When the exchange rate increases (appreciation), it has only positive effects on international trade.

a)

True

b)

False

154.

The impact of exchange-rate volatility on trade is the same in the short run and the long run

a)

True

b)

False

155.

When a country’s balance of payments is in deficit, the exchange rate tends to be unstable and to fall (depreciate).

a)

True

b)

False

156.

When a country’s balance of payments is in surplus, the exchange rate tends to be stable and to fall (depreciate).

a)

True

b)

False

157.

When the exchange rate increases (appreciation), it has only positive effects on international trade.

a)

True

b)

False

158.

MFN is a regime requiring parties in economic–trade relations to grant one another preferential conditions ….. those granted to other countries.

(a)  

159.

NT is a regime requiring countries to take measures to ensure that foreign products and the suppliers of those products are treated in the domestic market ….. domestic products and domestic suppliers.

(a)  

160.

The purpose of the Most-Favored-Nation (MFN) regime in the multilateral trading system is to create equality of opportunity ….. equality among members when entering another member’s market.

(a)  

161.

The objective of trade protection is to safeguard national interests against the increasingly strong penetration of foreign goods and services—i.e., to protect the …...

(a)  

162.

Free trade is the implementation of the principle of …...

(a)  

163.

Trade protection is the implementation of the principle of …...

(a)  

164.

….. is a diplomatic instrument concluded by two or more countries stipulating the conditions for conducting trade activities

(a)  

165.

Support is when the Government uses certain instruments and measures to act directly or indirectly in a way that facilitates domestic goods and services ….. to foreign markets.

(a)  

166.

Export support is when the Government uses certain instruments and measures to act directly or indirectly in order to ….. domestic goods and services exported to foreign markets.

(a)  

167.

The Agreement on Subsidies and Countervailing Measures (SCM) divides subsidies into ….. categories.

(a)  

168.

A tariff is a tax levied on goods as they move across the ….. of a country.

(a)  

169.

….. is a measure whereby the State requires the importer to place a deposit in foreign currency at a commercial bank before importing the goods

(a)  

170.

mport deposit is a measure whereby the State requires the importer to place a deposit at a commercial bank in a sum of ….. before importing the goods.

(a)  

171.

A quota is the ….. limit on the quantity or value of goods permitted to be imported or exported during a given period

(a)  

172.

A technical barrier is when the ….. imposes regulatory and technical-standard requirements on products, requiring exported or imported products to meet certain standards before they may be exported to foreign markets or imported into the domestic market

(a)  

173.

To reduce foreign-currency outlays, the importing country should purchase at price

(a)  

174.

To increase foreign-currency receipts, the exporting country should sell at price …...

(a)  

175.

When the price of a good on the world market falls, exporting that good may …..

(a)  

176.

If a country’s exports rise and imports fall, the exchange rate tends to …..

(a)  

177.

The price of one unit of foreign currency expressed as a specified number of units of domestic currency is called ….. quotation

(a)