International / Global Export and Import Trade test questions:
Which of the following major issues does not relate to the financial aspects of exporting?
(a) the price of the product
(b) the method of payment
(c) location of production
(d) terms of payment
All of the following are major types of indirect intermediaries EXCEPT:
(a) the export management company
(b) the export trading company
(c) export agents
(d) distributors
Tariff is a __
(a) Quantitative restrictions on imports.
(b) Tax on imports.
(c) License on import.
(d) Both (b) and (c)
A bill for goods issued by the seller that contains the description of the goods, the address of the buyer and seller, and delivery and payment terms is known as a:
(a) bill of lading.
(b) commercial invoice.
(c) shipper’s export declaration.
(d) certificate of origin
A letter of credit:
(a) is issued by a credit agency to a bank.
(b) cannot be amended.
(c) is more secure than cash in advance.
(d) obligates the importer’s bank to honor a draft presented to it
Related: Unemployment worksheet answers
A revocable letter of credit:
(a) obligates the exporter’s bank to honor a draft presented to it.
(b) can only be amended if all the parties involved agree.
(c) can be amended by any of the parties involved at any point.
(d) obligates the importer’s bank to honor a draft presented to it
From the exporter’s point of view, all of the following are major issues that relate to the financial aspects of exporting EXCEPT:
(a) the methods of payment
(b) the financing of receivables
(c) insurance
(d) inter modal transportation
Free trade is based on the principle of
(a) Comparative advantage
(b) Comparative scale
(c) Economies of advantage
(d) Production possibility advantage
A document that controls exports and is used to compile trade statistics is known as a:
(a) bill of lading.
(b) commercial invoice.
(c) certificate of origin.
(d) shipper’s export declaration
An irrevocable letter of credit:
(a) can only be amended if all parties involved agree.
(b) is issued by an irrevocable credit agency.
(c) can be amended by any of the parties involved at any point.
(d) obligates the exporter’s bank to pay interest to the importer
Related: commodity money mcq
Which of the following basic methods of payment is the least secure in terms of security for the exporter?
(a) letter of credit
(b) draft or bill of exchange
(c) open account
(d) Cash before shipment
Gains from trade can be divided into two parts.
(a) gains from exports and gains from imports.
(b) gains from specialization and gains from exchange.
(c) gains from consumption and gains from production.
(d) gains from profit and gains from loss
A document that is a receipt for goods delivered to the common carrier for transportation, a contract for the services rendered by the carriers, and a document of title is known as a(n):
(a) export license
(b) commercial invoice
(c) consular invoice
(d) bill of lading
The term ‘Dumping’ refers to
(a) The sale of a sub-standard commodity
(b) Sale in a foreign market of a commodity at a price below marginal cost
(c) Sale in a foreign market of a commodity just at marginal cost with too much of profit
(d) Smuggling of goods without paying any customs duty
Countries often use ___ to determine the specific tariff schedule for imports; it is a document that indicates where products originate.
(a) commercial invoice
(b) shipper’s export declaration
(c) bill of lading
(d) certificate of origin
Trade between two countries is considered as __ trade.
(a) External
(b) Internal
(c) Inter- regional
(d) None of the above
Related: what are the basic concepts of democracy?
A tariff that is levied as a fixed charge per unit of imports is known as a
(a) Specific tariff
(b) Add on tariff
(c) Import tariff
(d) Export tariff
A confirmed letter of credit:
(a) obligates the importer’s bank to honor a draft presented to it.
(b) obligates the exporter’s bank to honor a draft presented to it.
(c) cannot be amended.
(d) only has the confirmed guarantee of the importer’s bank
Exchange of goods against goods is called
(a) Charter
(b) Barter
(c) Hunter
(d) None of them
When tariffs are imposed on imports, which of the following will increase?
(a) Domestic output.
(b) Domestic demand.
(c) Domestic price.
(d) Domestic consumption
‘TRADE PROTECTION’ means
(a) Restrictions imposed on import trade
(b) Protection to home industries
(c) No free exchange of goods and services between two countries
(d) All of the above
Comparative advantage occurs when
(a) A country can produce more goods than anyone else
(b) A country has a lower opportunity cost for the production of goods than any other country.
(c) A country has more product lines than other countries
(d) The exchange rate appreciates
Related: inflation quiz
This type of trade barrier is the easiest to deal with.
(a) Tariffs
(b) Non-Tariff barriers
(c) Private barriers
(d) International barriers
Theoretically trade between two countries lakes place on account of
(a) differences in costs
(b) scarcity of goods
(c) comparative differences in costs
(d) need for exports
Which of the following is not an export?
(a) sales of domestic cars abroad
(b) purchase of foreign components
(c) students from abroad studying in your country
(d) sales of financial services
Which among the following is not a non-customs duty obstacle in the world trade?
(a) Quantity restriction
(b) Establishment of Standard of labour in manufacturing
(c) Determination of import duty uniformly
(d) Restrictions on goods quality
Freight forwarders do not perform this function.
(a) Packing advice
(b) Freight rate quotation
(c) Preparation of customs documents
(d) Product pricing
A tariff __
(a) Increases the volume of trade.
(b) Reduces the volume of trade.
(c) Has no effect on the volume of trade.
(d) Both (a) and (c)
‘Quota’ is
(a) tax levied on imports
(b) imports of capital goods
(c) limit on the quantity of imports
(d) limit on the quantity of Exports
A government’s restriction on the quantity of imports from a country is known as
(a) Export quota
(b) Import quota
(c) Import rent.
(d) Embargo
Related: micro economics quiz questions
NAFTA is an example of
(a) Common Market
(b) Customers Union
(c) Economic Community
(d) Free Trade Area
Freeing the economy from all unnecessary controls and regulations is referred to as
(a) Freedom
(b) Privatisation
(c) Liberalisation
(d) Globalisation
