International Trade Quiz-1

International Trade Quiz-1

Quiz

 

1. Business transaction taking place within the geographical boundaries of a nation is known as:
   1.   Domestic trade
   2.   Internal trade
   3.   Home trade
   4.   All of the above
2. Which of the following is a document that is used to list the goods that are being shipped?
   1.   Indent
   2.   Letter of credit
   3.   Shipping order
   4.   Shipping bills
3. Which of the following is a document that is issued by a bank and guarantees payment to the exporter?
   1.   Letter of credit
   2.   Shipping order
   3.   Shipping bills
   4.   Mate's receipt
4. Which of the following is a way that import trade can provide consumers with access to a wider variety of goods and services?
   1.   By allowing consumers to purchase goods and services from countries that produce them more efficiently
   2.   By allowing consumers to purchase goods and services that are not available in their home country
   3.   By allowing consumers to purchase goods and services at a lower price
   4.   All of the above
5. Full form of WTO is:
   1.   Work Trade Organisation
   2.   World Transfer Organisation
   3.   World Trade Organisation
   4.   Wonder Trade Organisation
6. Which of the following is a document that is used to acknowledge the receipt of the goods by the carrier?
   1.   Letter of credit
   2.   Shipping order
   3.   Shipping bills
   4.   Mate's receipt
7. Which of the following is not a way to finance import trade?
   1.   Using your own funds
   2.   Borrowing money from a bank
   3.   Leasing the goods
   4.   Using a trade credit
8. International business involves the movement of_________from one nation to another:
   1.   Goods and services
   2.   Trademarks
   3.   Know-how
   4.   All of these
9. Which of the following is not a step in the import trade procedure?
   1.   Paying for the goods
   2.   Negotiating a price
   3.   Placing an order
   4.   Arranging for shipping and insurance
10. Merchandise goods:
    1.   Includes trade in physical goods
    2.   Excludes trade in services
    3.   Both of the above
    4.   None of the above
11. The main reason that causes international business is:
    1.   Unequal distribution of natural resources among the nations
    2.   Differences in the productivity levels of nations
    3.   Labour productivity and production costs differ among nations
    4.   All of the above
12. Which of the following is a major difference between domestic trade and international trade:
    1.   Nationality of buyers and sellers
    2.   Mobility of factors of production
    3.   Political system and risks
    4.   All of the above
13. When two or more firms come together to create a new business entity that is distinct from its parents it is known as:
    1.   Joint venture
    2.   Franchising
    3.   Contract manufacturing
    4.   Licensing
14. Which of the following is a benefit of international business?
    1.   Increased market share
    2.   Reduced costs
    3.   Increased innovation
    4.   All of the above
15. Which of the following is a document that is used to initiate an import transaction?
    1.   Letter of credit
    2.   Indent
    3.   Shipping order
    4.   Shipping bills
16. Which of the following is a function of import trade?
    1.   To provide consumers with access to a wider variety of goods and services
    2.   To promote competition in the marketplace
    3.   To help businesses reduce their costs
    4.   All of the above
17. _________has more scope than___________:
    1.   International business; internal trade
    2.   International trade; international business
    3.   Both have the same scope
    4.   None of the above
18. Merchandise means:
    1.   Goods that are intangible
    2.   Goods that are tangible
    3.   Patents
    4.   None of the above
19. Which of the following is a document that is used to instruct the carrier to deliver the goods to the buyer?
    1.   Letter of credit
    2.   Shipping order
    3.   Shipping bills
    4.   Mate's receipt
20. Trade beyond the boundaries of a country is known as:
    1.   Internal trade
    2.   Home trade
    3.   International trade
    4.   All of the above