#1
Which country is the world's largest exporter of goods?
China
United States
Germany
Japan
#2
What does FDI stand for in the context of international trade?
Foreign Debt Index
Foreign Domestic Investment
Foreign Direct Investment
Free Duty Import
#3
What does the term 'trade deficit' refer to?
When a country's exports exceed its imports
When a country's imports exceed its exports
When a country's trade is balanced
When a country's trade is stagnant
#4
Which of the following is NOT a trade barrier?
Tariffs
Quotas
Subsidies
Free trade agreements
#5
What is the Smoot-Hawley Tariff Act?
A law enacted during the Great Depression that raised tariffs on thousands of imported goods
A trade agreement between the United States and Canada
An international treaty aimed at reducing greenhouse gas emissions
A policy designed to promote free trade among South American countries
#6
Which of the following is a consequence of protectionist trade policies?
Increased international cooperation
Lower consumer prices
Trade wars
Expansion of global markets
#7
Which theory suggests that countries should specialize in producing goods in which they have a comparative advantage?
Theory of Absolute Advantage
Theory of Comparative Advantage
Heckscher-Ohlin Theory
Mercantilism
#8
What is the term used to describe the practice of setting up production facilities in different countries to take advantage of differences in cost and quality of factors of production?
Globalization
Outsourcing
Offshoring
Multinational Corporation
#9
What is the main purpose of the GATT (General Agreement on Tariffs and Trade)?
To promote environmental sustainability
To regulate international currency exchange rates
To facilitate international trade by reducing tariffs and other barriers
To provide humanitarian aid to developing countries
#10
Which of the following is an example of a non-tariff barrier to trade?
Import quotas
Excise taxes
Value-added tax (VAT)
Customs duties
#11
What is the 'Balance of Payments'?
The difference between a country's total exports and imports
A measure of the overall economic health of a nation
A record of all economic transactions between residents of one country and the rest of the world
The amount of money a country has in reserve to cover its debts
#12
What is the 'Stolper-Samuelson theorem'?
A theory explaining the relationship between inflation and unemployment
A concept describing the impact of technological change on income distribution
A hypothesis regarding the effect of trade on the distribution of income
A model explaining the factors influencing exchange rates
#13
Which international organization is responsible for setting the rules of trade between nations and resolving disputes when they arise?
International Monetary Fund (IMF)
World Bank
World Trade Organization (WTO)
United Nations (UN)
#14
What is the 'Most Favored Nation' principle in international trade?
A policy where nations are given special preferences in trade agreements
A principle of reciprocity in which any advantage granted to one nation must be extended to all nations
A strategy to promote domestic industries by favoring certain trading partners
A concept to encourage fair trade practices among developing nations
#15
Which trade theory argues that factors such as differences in labor productivity and resource endowments determine patterns of international trade?
Theory of Comparative Advantage
Heckscher-Ohlin Theory
New Trade Theory
Theory of Absolute Advantage
#16
What is the 'Linder hypothesis' in international trade?
A theory explaining the relationship between trade and economic development
A model describing the impact of transportation costs on trade patterns
A concept proposing that countries with similar income levels tend to trade more with each other
A principle advocating for the liberalization of trade barriers
#17
What is the 'infant industry argument' in favor of protectionism?
A theory suggesting that industries in developing countries need protection from international competition until they become established and competitive
A principle advocating for the removal of trade barriers
A strategy to promote outsourcing of manufacturing jobs
A concept to encourage specialization in high-tech industries