#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 trade surplus?
A country exports more than it imports
ExplanationTrade surplus occurs when exports exceed imports.
#12
Which of the following is an example of a trade deficit?
A country imports more than it exports
ExplanationTrade deficit arises when imports surpass exports.
#13
What is the purpose of a trade embargo?
To restrict trade with a particular country
ExplanationTrade embargoes limit trade with specific nations.
#14
What is the main purpose of the General Agreement on Tariffs and Trade (GATT)?
To facilitate international trade by reducing tariffs and other trade barriers
ExplanationGATT aims to liberalize global trade by reducing barriers.
#15
Which of the following is a measure of a country's competitiveness in international trade?
Comparative advantage
ExplanationComparative advantage indicates trade competitiveness.
#16
Which of the following is an example of a non-tariff barrier to trade?
Import quotas
ExplanationImport quotas limit the quantity of imported goods.
#17
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.
#18
What is the main objective of import quotas?
To limit the quantity of imported goods
ExplanationImport quotas aim to restrict imported quantities.
#19
Which organization administers the North American Free Trade Agreement (NAFTA)?
Trade Representative of the United States
ExplanationNAFTA is administered by a joint commission.
#20
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.
#21
Which of the following is not a characteristic of globalization?
Decreased international trade
ExplanationGlobalization typically increases international trade.
#22
What is the primary function of the International Monetary Fund (IMF)?
To provide loans to countries facing economic difficulties
ExplanationIMF assists countries in financial crises through loans.
#23
Which economic theory emphasizes the importance of comparative advantage in international trade?
Classical economics
ExplanationClassical economics stresses comparative advantage.
#24
What is the term used to describe the practice of selling goods in foreign markets at a lower price than in the domestic market?
Dumping
ExplanationDumping involves selling goods cheaper abroad than domestically.
#25
Which of the following is a principle of the World Trade Organization (WTO)?
Most favored nation (MFN) treatment
ExplanationMFN treatment ensures equal trade advantages among members.