#1
Which organization oversees international trade agreements and dispute resolutions?
World Trade Organization (WTO)
ExplanationWTO oversees international trade agreements and dispute resolutions.
#2
What does FOB stand for in international trade?
Free on Board
ExplanationFOB stands for Free on Board in international trade.
#3
What does GATT stand for in the context of international trade?
General Agreement on Tariffs and Trade
ExplanationGATT stands for General Agreement on Tariffs and Trade.
#4
Which of the following is NOT a regional trade bloc?
EURO
ExplanationEURO is not a regional trade bloc.
#5
Which of the following is NOT a trade barrier?
Incoterms
ExplanationIncoterms are not a trade barrier.
#6
What is the main goal of a trade agreement?
To facilitate trade between countries
ExplanationTrade agreements aim to facilitate trade between countries.
#7
Which of the following is a characteristic of a free trade agreement (FTA)?
Promotes trade liberalization by reducing or eliminating trade barriers
ExplanationFTAs promote trade liberalization by reducing trade barriers.
#8
What is the primary purpose of a preferential trade agreement (PTA)?
To provide preferential treatment to certain countries or products
ExplanationPTA provides preferential treatment to certain countries or products.
#9
Which trade barrier involves limitations on the quantity of goods that can be imported?
Quotas
ExplanationQuotas involve limitations on the quantity of imported goods.
#10
What is the purpose of an INCOTERM in international trade?
To specify the delivery terms and responsibilities
ExplanationINCOTERM specifies delivery terms and responsibilities.
#11
What is the purpose of the Harmonized System (HS) code in international trade?
To classify products for customs and statistical purposes
ExplanationHS code classifies products for customs and statistics.
#12
Which of the following is NOT a trade remedy measure?
Subsidies
ExplanationSubsidies are not a trade remedy measure.
#13
Which international organization is responsible for setting accounting standards?
International Financial Reporting Standards (IFRS) Foundation
ExplanationIFRS Foundation sets international accounting standards.
#14
What is the purpose of the International Chamber of Commerce (ICC) in international trade?
To provide arbitration and dispute resolution services
ExplanationICC provides arbitration and dispute resolution services.
#15
What is the primary purpose of a Letter of Credit (LC) in international trade?
To provide a guarantee of payment to the buyer
ExplanationLC provides a payment guarantee to the buyer.
#16
What is the primary purpose of a Certificate of Origin in international trade?
To specify the country where the goods originated
ExplanationCertificate of Origin specifies goods' country of origin.
#17
What is the primary purpose of a Bill of Lading in international trade?
To serve as a receipt for goods shipped
ExplanationBill of Lading serves as a receipt for shipped goods.
#18
Which international organization focuses on labor standards and workers' rights in global trade?
International Labour Organization (ILO)
ExplanationILO focuses on labor standards and workers' rights in trade.
#19
What is Dumping in the context of international trade?
Selling goods abroad at a lower price than in the domestic market
ExplanationDumping is selling goods abroad cheaper than domestically.
#20
Which of the following is an example of a non-tariff barrier to trade?
Product standards and regulations
ExplanationProduct standards and regulations are non-tariff barriers.
#21
What does the acronym CPTPP stand for in international trade?
Comprehensive and Progressive Agreement for Trans-Pacific Partnership
ExplanationCPTPP stands for Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
#22
Which international trade theory suggests that countries should specialize in the production of goods they are most efficient at?
Theory of Comparative Advantage
ExplanationTheory of Comparative Advantage suggests specialization in efficient goods.
#23
Under the Most-Favored-Nation principle, what treatment should a country provide to another country?
Treat other countries equally with the best trade terms offered
ExplanationUnder MFN, countries treat each other equally with best trade terms.
#24
Which trade policy aims to restrict the outflow of domestic currency by limiting imports?
Import Substitution
ExplanationImport Substitution restricts currency outflow by limiting imports.
#25
Which trade theory suggests that countries should focus on producing goods that require resources they have in abundance?
Heckscher-Ohlin theory
ExplanationHeckscher-Ohlin theory suggests focusing on abundant resources.