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In this blog post, I have published International Trade MCQ with answers. This post (set 2) contains 30 MCQs.
Set 2: International Trade MCQ with answers
1. ________is the number by which the change in investment must be multiplied in order to determine the resulting changes in total income.
Marginal propensity to consume
Marginal propensity to save
2. Which among the following is not an objective of commercial policy?
Increase the quality of trade with foreign nations
Control the money supply in the economy
Stabilizing the foreign trade
Encouraging the development and protection of domestic Industries.
3. If the MPC of a country is 0.75, Find the multiplier
4. Which among the following is not a measure to raise the propensity to consume?
Development of the means of transport
Positive attitude towards saving
5. The Leontief paradox stated that
USA’s exports were labor-intensive, and imports were capital intensive
USA’s exports and imports both were capital intensive
USA’s exports and imports both were labor-intensive
USA’s exports were capital intensive and imports were labor-intensive
6. Government policies or measures that restrict trade without imposing a direct duty is known as_______
7. When the export price of a product imported into India is less than the nominal value of ‘same articles’ sold in the domestic market of the exporter, _______ duty is usually imposed
Anti- Dumping duty
Basic custom duty
8. Which is the situation found during the peak phase of the business cycle?
Falling of Investment
Fall in Employment
Increases in Inflation
Falling stock prices
9. In International trade which of the following is a non-tariff trade barrier?
Ad valorem duty
10. Duty levied on the value of goods imported is referred to as_______
Ad valorem duty
11. McDonald’s faced backlash due to an Ad in which they showed a man kneeling before McDonald’s vendor and begging to accept his expired coupon because begging is considered a shameful act by Chinese people. Which factor the did company fail to understand well?
12. _______is a framework that can help marketers assess whether the macroeconomic factors are affecting an organization.
Five Forces Model
13. ______ is a term referring to the process by which elements of different cultures are blended together to create a new culture.
14. If a person is reading a novel at the same time attending phone calls and also drinking tea, he is having a _______ culture.
15. The study of how we communicate with the distance between the sender and the receiver of the message in an oral communication is known as_____.
16. Which cannot be included as the fundamental elements of democratic political system.
Free and Fair elections regularly.
Freedom of opinion to press.
Majorities rights should only be considered
Fair and independent court system.
17. When the religious leaders take up and leads the executive, legislative, and judicial powers of a nation, we call it ____.
18. The implementation of new rule by the current government or newly elected government is a ______ type of political risk.
19. If the government seizing the International company’s assets and makes some reimbursement for the same, it is called_____.
20. The political risk faced by a firm can be managed by_____.
following ethical business practices.
partnership with local firms.
None of the above
21. ___________represents the total value of goods and services produced by the residents of a country during a financial year.
22. Which among the following is not an indicator of the Human Development Index?
Per Capita Income
23. Which component of the economy results from faster growth of aggregate demand compared to aggregate supply?
24. Sri Lanka is a pearl-shaped island nation in South Asia; imagine the country is going through a catastrophic situation due to tsunami, which among the following will be valid in respect to the above-mentioned situation;
The price level is increasing due to supply disruption
The price level is falling due to supply disruption
No change in the price level as supply disrupted
Demand will have no influence on supply due to the tsunami
25. What will happen if a nation begins to print more currency and distribute it to people as the prices of everything are increasing day by day, and they are not able to meet their needs.
Country will run smoothly as people are getting enough money to spend
Country’s currency will get devaluation, and the economy will collapse
will have no impact on the economy
Economy will slightly move towards deflation
26. ________ index is to measure the degree of economic distress due to the risk of (or actual) joblessness combined with an increasing cost of living.
Human Development Index
Physical Quality Life Index
27. Gini index is a commonly used measurement to measure___________
Education level of people in the country
Inequality in the distribution of income or wealth
Money supply in the economy
GDP of the nation
28. A student is doubtful regarding which type of economy he is living in. He feels there is high literacy, less corruption, and a high average income per person. Which index will help him to clarify his doubt?
Human Development Index
Economic Freedom Index
Sustainable Society Index
29. KFC ensures that their customers get a similar experience in every location in terms of quality, taste, and ambiance. They try to attain it through___________.
30. Which of the following cannot be considered as a mode of international technology transfer?
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