International Trade and Investment Quiz
Test your knowledge on international trade economics with questions on tariffs, trade barriers, WTO, GATT, FDI, and more in this comprehensive quiz.
#1
Which of the following is an example of a tariff barrier?
Import quotas
Export subsidies
Voluntary export restraints
Value-added tax (VAT)
#2
What does FDI stand for?
Foreign Department of Investment
Foreign Direct Investment
Free Domestic Investment
Federal Development of International
#3
Which international organization is primarily responsible for setting global trade rules?
World Bank
International Monetary Fund (IMF)
World Trade Organization (WTO)
United Nations (UN)
#4
What does 'GATT' stand for in the context of international trade?
Global Agreement on Tariffs and Trade
General Agreement on Tariffs and Taxes
Global Alliance for Trade and Taxes
General Assembly on Trade and Tariffs
#5
What is the purpose of a trade deficit?
To increase domestic production
To decrease foreign investment
To promote international competitiveness
To finance domestic consumption
#6
Which theory suggests that countries should specialize in producing goods they are most efficient at?
Theory of Absolute Advantage
Theory of Comparative Advantage
Theory of Optimal Allocation
Theory of Perfect Competition
#7
Which of the following is an example of a non-tariff barrier to trade?
Export subsidies
Quotas
Voluntary export restraints
Customs procedures
#8
What is the 'Most Favored Nation' principle in trade agreements?
Granting the best trade terms offered to any other country
Providing exclusive trade privileges to a particular nation
Imposing tariffs only on specific types of goods
Allowing selective tariff exemptions for preferred nations
#9
What is a 'balance of payments'?
A financial statement summarizing all economic transactions between a country and the rest of the world
A government policy to control imports and exports
A tax levied on imported goods
An agreement between countries to reduce trade barriers
#10
What is the 'Laffer Curve' often associated with in international trade?
Currency exchange rates
Tariff negotiations
Taxation policies
Trade agreements
#11
What is 'dumping' in the context of international trade?
Selling goods in a foreign market at a price below production cost
Exporting goods to a country with a trade surplus
Investing heavily in foreign markets
Imposing high tariffs on imports
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