Take this quiz on international trade, tariffs, agreements, and more to assess your understanding of export management. 15 questions to challenge your expertise!
Which of the following is a benefit of international trade?
Increased competition
Decreased market access
Reduced specialization
Limited innovation
#2
What is a tariff?
A tax imposed on imports or exports
A subsidy given to domestic producers
A restriction on the quantity of goods imported
A form of trade liberalization
#3
What is a trade deficit?
When a country exports more than it imports
When a country imports more than it exports
When a country's imports and exports are equal
When a country's imports and exports are balanced
#4
What is the Smoot-Hawley Tariff Act known for?
Reducing trade barriers during the Great Depression
Increasing trade barriers during the Great Depression
Establishing the World Trade Organization
Negotiating free trade agreements with Europe
#5
What is the 'dumping' of goods in the context of international trade?
Exporting goods at a price below their production cost
Imposing high tariffs on imported goods
Implementing import quotas on specific goods
Promoting fair competition among international traders
#6
What does the term 'balance of trade' refer to?
The difference between imports and exports of a country
The total volume of imports of a country
The total volume of exports of a country
The difference between GDP and GNP
#7
What is the main purpose of export management?
To regulate domestic markets
To limit international competition
To increase export sales and profits
To decrease international trade barriers
#8
Which of the following trade theories suggests that a country should specialize in the production of goods and services that it can produce most efficiently?
Mercantilism
Absolute advantage
Comparative advantage
Protectionism
#9
Which organization is responsible for overseeing international trade agreements?
World Trade Organization (WTO)
International Monetary Fund (IMF)
World Bank
United Nations (UN)
#10
What is the purpose of Incoterms in international trade?
To specify payment terms between buyers and sellers
To define the responsibilities of buyers and sellers in shipping goods
To regulate import quotas and tariffs
To manage currency exchange rates
#11
What is a 'letter of credit' in international trade?
A written promise to pay a specified sum of money to a beneficiary
A legal document that specifies the details of a transaction
A document issued by a bank guaranteeing payment to a seller
A contract between two parties for the exchange of goods
#12
What is the significance of dumping in international trade?
It refers to the process of selling goods abroad at a lower price than the domestic market
It implies exporting goods without government permission
It refers to the process of importing goods at a higher price than the domestic market
It implies restricting the import of goods for economic gain
#13
What is the 'most favored nation' status in international trade?
A trade agreement between two countries granting special privileges
A trade agreement that favors developed nations over developing nations
A principle of non-discrimination in trade policy
A preferential trade agreement within a regional bloc
#14
What is the purpose of a certificate of origin in international trade?
To specify the quality standards of goods
To indicate the country where the goods were produced
To determine the value of imported goods
To regulate the payment terms of international transactions
#15
What is a preferential trade agreement (PTA)?
An agreement that grants special trading privileges to certain countries
A trade agreement that imposes tariffs on imported goods
A treaty that restricts the movement of goods between nations
An agreement that promotes free trade among developing nations