#1
Which organization sets the rules for international trade?
World Health Organization (WHO)
International Monetary Fund (IMF)
World Trade Organization (WTO)
United Nations (UN)
#2
What does FOB stand for in international trade?
Free On Board
Final Order Bid
Freight On Board
For Our Benefit
#3
Which of the following is NOT a trade barrier?
Subsidy
Tariff
Sanction
Quota
#4
What does the acronym NAFTA stand for?
North American Financial and Trade Agreement
National Association for Free Trade and Agriculture
North Atlantic Free Trade Agreement
North American Free Trade Agreement
#5
Which of the following is a major objective of trade liberalization?
To increase trade barriers
To restrict foreign investment
To promote protectionism
To reduce or eliminate trade barriers
#6
What is the term for the difference between a country's total exports and total imports?
Trade gap
Trade barrier
Trade surplus
Trade deficit
#7
Which of the following is a tariff barrier to trade?
Quota
Embargo
Subsidy
Dumping
#8
What is the concept of 'comparative advantage' in international trade?
When a country produces goods at the lowest opportunity cost
When a country has the highest GDP
When a country imposes tariffs on imports
When a country focuses on domestic production only
#9
What is the main purpose of a letter of credit in international trade?
To ensure prompt payment between buyer and seller
To regulate exchange rates
To impose trade restrictions
To provide insurance against cargo damage
#10
What is the purpose of a bill of lading in international trade?
To specify the terms of payment
To certify the country of origin of goods
To acknowledge receipt of goods for shipment
To calculate import duties
#11
Which trade theory suggests that countries should specialize in the production of goods where they possess an absolute advantage?
Theory of Comparative Advantage
Theory of Absolute Advantage
Theory of Factor Proportions
Theory of Comparative Cost
#12
What is the primary purpose of the General Agreement on Tariffs and Trade (GATT)?
To promote global environmental sustainability
To regulate international financial transactions
To reduce barriers to international trade
To establish global labor standards
#13
Which theory suggests that countries should specialize in the production of goods in which they have a comparative advantage?
Theory of Absolute Advantage
Theory of Comparative Advantage
Theory of Factor Proportions
Theory of Imperfect Competition
#14
What is the significance of the Most Favored Nation (MFN) principle in international trade?
It ensures that countries favor their closest allies in trade agreements
It prevents countries from discriminating against one another in trade agreements
It allows countries to impose higher tariffs on certain imports
It promotes unilateral trade agreements between countries