#1
Which organization facilitates international trade negotiations and agreements?
World Trade Organization (WTO)
ExplanationWTO facilitates global trade negotiations and agreements.
#2
What does the term 'FTA' stand for in the context of international trade?
Free Trade Agreement
ExplanationFTA signifies agreements for free trade between nations.
#3
What does the acronym FDI stand for in the context of international business?
Foreign Direct Investment
ExplanationFDI represents direct investments in foreign ventures.
#4
Which of the following is a trade barrier imposed by a government to protect domestic industries by restricting the quantity of imports?
Quota
ExplanationQuota limits imports to safeguard domestic industries.
#5
Which international financial institution provides loans to developing countries for capital programs?
World Bank
ExplanationWorld Bank offers loans for capital projects in developing nations.
#6
What is the term for a situation in which a country exports more goods than it imports?
Trade Surplus
ExplanationTrade Surplus occurs when exports exceed imports.
#7
Which economic indicator is used to measure a country's overall economic performance?
Gross Domestic Product (GDP)
ExplanationGDP gauges a nation's total economic output.
#8
What is the primary purpose of a letter of credit in international trade?
To provide a guarantee of payment in a transaction
ExplanationLetters of credit assure payment security in transactions.
#9
What is the term used for a government-imposed restriction on the free exchange of goods and services between countries?
Embargo
ExplanationEmbargo refers to government restrictions on international trade.
#10
Which of the following is an example of a non-tariff barrier to trade?
Quota
ExplanationQuota is a non-tariff barrier limiting import quantities.
#11
What is the primary purpose of INCO terms in international trade?
Defining the responsibilities of buyers and sellers in a contract
ExplanationINCO terms outline contractual duties for buyers and sellers.
#12
Which international organization focuses on promoting economic cooperation and development among its member countries?
Organisation for Economic Co-operation and Development (OECD)
ExplanationOECD fosters economic collaboration and growth among member states.
#13
In which trade finance method does a bank act as an intermediary to guarantee payment between the buyer and seller?
Letter of Credit
ExplanationA Letter of Credit involves a bank securing payment between parties.
#14
What is the primary goal of the General Agreement on Tariffs and Trade (GATT)?
Reducing barriers to international trade
ExplanationGATT's goal is to decrease obstacles to global trade.
#15
Which economic theory suggests that a country should specialize in the production of goods for which it has a comparative advantage?
Comparative Advantage
ExplanationComparative Advantage advocates specialization based on strengths.
#16
What is the primary function of the International Chamber of Commerce (ICC) in the context of global business?
Resolving international disputes
ExplanationICC primarily mediates global business conflicts.
#17
What is the term for the practice of selling goods abroad at a price lower than the production cost or fair market value?
Dumping
ExplanationDumping involves selling goods below fair market value abroad.
#18
What is the primary goal of the United Nations Conference on Trade and Development (UNCTAD)?
Fostering economic development of developing countries
ExplanationUNCTAD's goal is to aid economic growth in developing nations.