#1
Which of the following is an example of a tariff barrier in international trade?
Quota
Embargo
Subsidy
Import duty
#2
What is the main purpose of comparative advantage in international trade?
To achieve self-sufficiency
To maximize domestic employment
To increase total production
To minimize opportunity cost
#3
Which of the following is NOT a potential benefit of international trade?
Economic growth
Increased competition
Cultural homogenization
Resource allocation efficiency
#4
What does the term 'dumping' refer to in the context of international trade?
Selling goods in foreign markets at a lower price than in the domestic market
Exporting goods with high tariffs imposed by the importing country
Importing goods in large quantities to meet domestic demand
Trading goods between countries without any tariffs or restrictions
#5
Which of the following is an example of a non-tariff barrier to international trade?
Export subsidies
Import quotas
Value-added tax (VAT)
Embargoes
#6
Which theory of international trade emphasizes the importance of factor endowments?
Theory of Absolute Advantage
Theory of Comparative Advantage
Heckscher-Ohlin Theory
Theory of Mercantilism
#7
What is the main reason behind the adoption of protectionist policies in international trade?
To reduce unemployment
To promote free trade
To protect domestic industries
To increase consumer surplus
#8
Which international trade theory suggests that countries should specialize in producing goods for which they have the lowest opportunity cost?
Heckscher-Ohlin Theory
Theory of Comparative Advantage
Theory of Absolute Advantage
Theory of Factor Proportions
#9
What is the primary objective of trade liberalization policies?
To increase government revenue
To restrict imports
To reduce trade barriers
To promote currency devaluation
#10
Which international organization promotes free trade by negotiating and enforcing trade agreements among member countries?
World Bank
International Monetary Fund (IMF)
World Trade Organization (WTO)
European Union (EU)
#11
According to the theory of absolute advantage, who gains from international trade?
Only countries with advanced technology
Only countries with abundant resources
All participating countries
None of the above
#12
In the context of international trade, what does the term 'terms of trade' refer to?
The ratio of a country's exports to its imports
The conditions under which trade agreements are negotiated
The prices of a country's exports relative to its imports
The total volume of trade between two countries
#13
Which economic concept refers to the difference between a country's total exports and imports?
Balance of payments
Current account balance
Trade deficit
Trade surplus
#14
According to the principle of absolute advantage, what should countries specialize in?
Producing goods with the lowest opportunity cost
Producing goods with the highest opportunity cost
Producing goods with the highest price in the international market
Producing goods for domestic consumption only
#15
Which of the following is NOT a potential consequence of globalization on international trade?
Increased economic integration
Higher income inequality
Greater cultural diversity
Improved technology transfer