INTERNATIONAL TRADE EXAMINATION QUESTIONS AND CORRECT ANSWER WITH EXPLANATION GRADED A+ STUDY GUIDE

INTERNATIONAL TRADE EXAMINATION QUESTIONS AND
CORRECT ANSWER WITH EXPLANATION GRADED A+
STUDY GUIDE SOUTHERN NEW HAMPSHIRE UNIVERSITY

1. International trade refers to:

A. Local exchange only
B. Exchange of goods and services between countries
C. HR trade
D. Cooking trade
Answer: B
Cross-border trade activities.



2. Export means:

A. Buying from abroad
B. Selling goods to another country
C. HR export
D. Cooking export
Answer: B
Outflow of goods.



3. Import means:

A. Selling abroad
B. Buying goods from another country
C. HR import
D. Cooking import
Answer: B
Influx of foreign goods.



4. Balance of trade is:

,A. Government budget
B. Difference between exports and imports
C. HR balance
D. Cooking balance
Answer: B
Trade position measure.



5. Trade surplus occurs when:

A. Imports exceed exports
B. Exports exceed imports
C. HR surplus
D. Cooking surplus
Answer: B
Positive trade balance.



6. Trade deficit occurs when:

A. Exports exceed imports
B. Imports exceed exports
C. HR deficit
D. Cooking deficit
Answer: B
Negative trade balance.



7. Comparative advantage means:

A. Absolute superiority only
B. Lower opportunity cost in production
C. HR advantage
D. Cooking advantage
Answer: B
Basis for specialization.



8. Absolute advantage means:

, A. Higher cost production
B. Ability to produce more efficiently
C. HR advantage
D. Cooking advantage
Answer: B
Greater productivity.



9. Free trade means:

A. No exchange
B. Trade without restrictions
C. HR trade
D. Cooking trade
Answer: B
Open international markets.



10. Protectionism refers to:

A. Free trade policy
B. Policies protecting domestic industries
C. HR protection
D. Cooking protection
Answer: B
Limits foreign competition.



11. Tariff is:

A. Subsidy
B. Tax on imports
C. HR tariff
D. Cooking tariff
Answer: B
Raises import prices.



12. Quota is: