Trade Policies and Export Promotion
1. Which of the following is not an example of an export promotion policy? a) Export
subsidies
b) Export credit guarantees
c) General economic policy
d) Import quotas
Correct Answer: d)
2. What is one main objective of Export Promotion Agencies (EPAs)? a) Reduce the GDP
of trading countries
b) Help exporters understand and find foreign markets
c) Increase tariffs for imported goods
d) Protect domestic industries from competition
Correct Answer: b)
3. Which of the following services is not offered by EPAs? a) Country image building
b) Marketing and trade fairs
c) Imposing trade restrictions
d) Market research and publications
Correct Answer: c)
4. Why are EPAs important for domestic firms? a) They provide information on foreign
markets.
b) They impose tariffs on imports.
c) They restrict foreign competition.
d) They only benefit large firms.
Correct Answer: a)
General Economic Diplomacy
5. Which diplomatic mechanism is most commonly used to foster trade relationships? a)
State visits
b) Tariffs
c) Quotas
d) Economic sanctions
Correct Answer: a)
6. According to Nitsch (2007), state visits: a) Have no measurable impact on trade.
b) Are associated with 8–10% higher exports.
c) Always lead to doubling exports.
d) Reduce exports due to higher diplomatic costs.
Correct Answer: b)
7. Which of the following best describes Rose (2007)'s findings on embassies? a) Each
embassy reduces trade by 10%.
b) The first embassy more than doubles exports.
1. Which of the following is not an example of an export promotion policy? a) Export
subsidies
b) Export credit guarantees
c) General economic policy
d) Import quotas
Correct Answer: d)
2. What is one main objective of Export Promotion Agencies (EPAs)? a) Reduce the GDP
of trading countries
b) Help exporters understand and find foreign markets
c) Increase tariffs for imported goods
d) Protect domestic industries from competition
Correct Answer: b)
3. Which of the following services is not offered by EPAs? a) Country image building
b) Marketing and trade fairs
c) Imposing trade restrictions
d) Market research and publications
Correct Answer: c)
4. Why are EPAs important for domestic firms? a) They provide information on foreign
markets.
b) They impose tariffs on imports.
c) They restrict foreign competition.
d) They only benefit large firms.
Correct Answer: a)
General Economic Diplomacy
5. Which diplomatic mechanism is most commonly used to foster trade relationships? a)
State visits
b) Tariffs
c) Quotas
d) Economic sanctions
Correct Answer: a)
6. According to Nitsch (2007), state visits: a) Have no measurable impact on trade.
b) Are associated with 8–10% higher exports.
c) Always lead to doubling exports.
d) Reduce exports due to higher diplomatic costs.
Correct Answer: b)
7. Which of the following best describes Rose (2007)'s findings on embassies? a) Each
embassy reduces trade by 10%.
b) The first embassy more than doubles exports.
