#1
Which of the following is not a benefit of international trade?
Limited market size
ExplanationInternational trade expands market opportunities.
#2
What does GDP stand for?
Gross Domestic Product
ExplanationGDP measures a country's economic output.
#3
Which of the following is not a major regional trade bloc?
BRICS
ExplanationBRICS is a geopolitical group, not a trade bloc.
#4
What does FDI stand for in the context of international business?
Foreign Direct Investment
ExplanationFDI refers to investments made in foreign countries.
#5
In international trade, what does FOB stand for?
Free On Board
ExplanationFOB indicates shipping responsibility transfer.
#6
Which of the following is a trade barrier?
Tariffs
ExplanationTariffs are taxes on imported goods.
#7
What is the purpose of the World Trade Organization (WTO)?
To resolve trade disputes
ExplanationWTO oversees global trade rules and resolves disputes.
#8
What is the main purpose of a trade surplus?
To increase foreign reserves
ExplanationTrade surplus boosts a country's foreign reserves.
#9
What is the term for the value of a country's exports minus its imports?
Trade deficit
ExplanationTrade deficit signifies higher imports than exports.
#10
What is the balance of trade?
The difference between exports and imports
ExplanationBalance of trade reflects the net trade position.
#11
Which of the following is an example of a non-tariff barrier to trade?
Import quotas
ExplanationImport quotas limit the quantity of imported goods.
#12
Which of the following is a characteristic of absolute advantage in international trade?
It is based on the ability to produce a good more efficiently than other countries
ExplanationAbsolute advantage denotes superior production efficiency.
#13
What is the main objective of import quotas?
To limit the quantity of imported goods
ExplanationImport quotas aim to restrict imported quantities.
#14
Which organization administers the North American Free Trade Agreement (NAFTA)?
Trade Representative of the United States
ExplanationNAFTA is administered by a joint commission.
#15
What is Dumping in the context of international trade?
Selling goods in foreign markets at a lower price than in the domestic market
ExplanationDumping involves selling goods below domestic prices abroad.