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. Which of the following trade policies aims to promote the growth of domestic industries by encouraging the export of goods and services?

Export Promotion

Import Substitution

Trade Liberalization

Dumping

2. How does trade impact cultural diversity?

Trade promotes cultural diversity

Trade hinders cultural diversity

Trade has no impact on cultural diversity

Trade only benefits dominant cultures

3. Which of the following is an example of a non-tariff barrier to trade?

Import quota

Export subsidy

Tariff

Embargo

4. What is the role of multinational corporations (MNCs) in international trade?

To engage in foreign direct investment and operate in multiple countries

To promote protectionism and regulate international trade

To promote economic development through trade and investment

To promote fair trade and labor rights

5. 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

6. 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

7. 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

8. What is the relationship between trade and intellectual property?

Trade agreements often include provisions for protecting intellectual property rights

Trade has no impact on intellectual property

Trade always leads to the infringement of intellectual property rights

Trade is detrimental to innovation and creativity

9. Which trade theory suggests that countries should specialize in producing goods in which they have a comparative advantage?

Mercantilism

Absolute Advantage

Comparative Advantage

Heckscher-Ohlin Theory

10. What is the purpose of a tariff?

To promote free trade

To reduce trade deficits

To protect domestic industries

To encourage foreign investment

11. 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

12. Which international trade agreement aims to promote free trade by reducing barriers to trade and eliminating tariffs?

World Trade Organization (WTO)

North American Free Trade Agreement (NAFTA)

European Union (EU)

Trans-Pacific Partnership (TPP)

13. What is the relationship between trade and financial markets?

Trade can affect financial markets through the flow of capital and exchange rate fluctuations

Trade has no impact on financial markets

Trade always destabilizes financial markets

Trade is detrimental to financial stability

14. What is the relationship between trade and cultural exchange?

Trade can facilitate cultural exchange and the spread of ideas

Trade has no impact on cultural exchange

Trade always leads to cultural homogenization

Trade is detrimental to cultural diversity

15. What is the role of the World Bank?

To provide financial and technical assistance for development projects in developing countries

To promote protectionism and regulate international trade

To promote economic development through trade and investment

To promote fair trade and labor rights

16. Which of the following is an example of a trade policy aimed at protecting domestic industries from foreign competition?

Tariffs

Export Subsidies

Free Trade Agreements

Trade Facilitation

17. Which of the following trade theories suggests that countries should specialize in producing goods in which they have a comparative advantage?

Mercantilism

Absolute Advantage

Comparative Advantage

Heckscher-Ohlin Theory

18. What is the role of the United Nations Conference on Trade and Development (UNCTAD)?

To promote the integration of developing countries into the global economy

To promote protectionism and regulate international trade

To promote economic development through trade and investment

To promote fair trade and labor rights

19. What is the main objective of trade policies?

To promote domestic industries

To restrict imports

To achieve trade surplus

To reduce trade barriers

20. How does trade affect economic development?

Trade promotes economic development

Trade hinders economic development

Trade has no impact on economic development

Trade only benefits developed countries

Political Economy of International Trade MCQ Test 4