Excellent Political Economy Of International Trade Test - 93+ MCQs: Political Economy of International Trade test: Assess Your Knowledge with Trade Questions and Answers - Political Economy Of International Trade Test

1. What is protectionism?

The policy of promoting free trade

The policy of imposing tariffs and other barriers to trade

The policy of reducing government intervention in trade

The policy of promoting international cooperation

2. Which of the following trade policies aims to reduce trade barriers and promote the free flow of goods and services between countries?

Free Trade

Protectionism

Import Substitution

Trade Liberalization

3. Which of the following is an example of a trade barrier that protects domestic industries from foreign competition?

Export subsidy

Tariff

Embargo

Import quota

4. How does trade impact exchange rates?

Trade stabilizes exchange rates

Trade destabilizes exchange rates

Trade has no impact on exchange rates

Exchange rates only benefit currency speculators

5. How does trade impact technology transfer?

Trade promotes technology transfer

Trade hinders technology transfer

Trade has no impact on technology transfer

Technology transfer only benefits developed countries

6. What is intellectual property?

Intangible creations of the mind, such as inventions, literary and artistic works, and symbols

Physical property, such as land and buildings

Financial assets, such as stocks and bonds

Natural resources, such as oil and minerals

7. What is the role of non-governmental organizations (NGOs) in international trade?

To advocate for social and environmental issues and promote fair trade

To promote protectionism and regulate international trade

To promote economic development through trade and investment

To provide financial and technical assistance for development projects

8. What is the role of regional trade agreements (RTAs) in international trade?

To promote economic integration and reduce trade barriers among member countries

To promote protectionism and regulate international trade

To promote economic development through trade and investment

To promote fair trade and labor rights

9. What is the relationship between trade and exchange rates?

Trade can influence exchange rates through supply and demand for currencies

Trade has no impact on exchange rates

Trade always leads to fixed exchange rates

Trade is detrimental to currency stability

10. Which international trade agreement aims to promote free trade by reducing barriers to trade and investment?

World Trade Organization (WTO)

North American Free Trade Agreement (NAFTA)

European Union (EU)

Trans-Pacific Partnership (TPP)

11. Which of the following trade agreements aims to promote economic integration among countries in Europe?

NAFTA

ASEAN

MERCOSUR

12. Which of the following is an example of a trade policy aimed at reducing barriers to trade and promoting economic integration?

Import substitution

Trade liberalization

Export promotion

Import quota

13. What is the relationship between trade and inequality?

Trade can exacerbate income and wealth inequality

Trade has no impact on inequality

Trade always leads to more equal distribution of resources

Trade is detrimental to social justice

14. What is the relationship between trade and poverty?

Trade can contribute to poverty reduction by promoting economic growth and employment

Trade has no impact on poverty

Trade always leads to increased poverty

Trade is detrimental to poverty reduction

15. Which theory of international trade suggests that countries should specialize in producing goods and services in which they have a comparative advantage?

Mercantilism

Absolute advantage

Comparative advantage

Factor proportions theory

16. Which of the following is an example of a trade policy aimed at promoting exports and attracting foreign investment?

Import substitution

Trade liberalization

Export promotion

Import quota

17. What is the relationship between trade and the environment?

Trade can have both positive and negative environmental impacts

Trade has no impact on the environment

Trade always leads to environmental degradation

Trade is beneficial for the environment

18. What is the purpose of a tariff?

To promote free trade

To reduce trade deficits

To protect domestic industries

To encourage foreign investment

19. What is the relationship between trade and economic growth?

Trade can stimulate economic growth by expanding markets and promoting specialization

Trade has no impact on economic growth

Trade always hinders economic growth

Trade is detrimental to economic stability

20. What is the role of trade in economic development?

Trade can promote economic growth, create jobs, and reduce poverty

Trade can hinder economic growth, lead to job losses, and increase poverty

Trade has no impact on economic development

Trade can lead to economic instability and financial crises

21. What is a tariff?

A tax imposed on imported goods

A tax imposed on exported goods

A subsidy given to domestic producers

A quota on imported goods

22. What is the term used to describe the process of increasing interconnectedness and interdependence among countries through the exchange of goods, services, capital, and ideas?

Globalization

Protectionism

Isolationism

Regionalism

23. What is foreign direct investment (FDI)?

Investment in a foreign country that involves ownership or control of a business

Investment in a foreign country that does not involve ownership or control of a business

Investment in the domestic market by foreign companies

Investment in the domestic market by domestic companies

24. What is the balance of trade?

The difference between a country's exports and imports

The total value of a country's exports

The total value of a country's imports

The difference between a country's GDP and GNP

25. Which theory of international trade suggests that countries should specialize in the production of goods and services in which they have a lower opportunity cost?

Mercantilism

Absolute advantage

Comparative advantage

Factor proportions theory

26. What is the main objective of international trade?

To promote economic growth

To reduce poverty

To increase employment

To foster cultural exchange

27. What is dumping?

Selling goods in a foreign market at a price lower than the cost of production

Selling goods in a foreign market at a price higher than the cost of production

Selling goods in the domestic market at a price lower than the cost of production

Selling goods in the domestic market at a price higher than the cost of production

28. Which of the following trade policies aims to promote the growth of domestic industries by restricting imports through quotas or licensing requirements?

Import Substitution

Export Promotion

Trade Liberalization

Dumping

29. Which of the following trade organizations is responsible for overseeing the implementation and enforcement of trade agreements among its member countries?

World Trade Organization (WTO)

International Monetary Fund (IMF)

World Bank

United Nations (UN)

30. What is economic globalization?

The increasing integration and interdependence of national economies

The process of reducing government intervention in the economy

The promotion of economic development through trade and investment

The regulation of international trade and financial flows

Political Economy of International Trade MCQ Test 3