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Quiz No. 5
International Trade
1. It is a policy that can be viewed as a spectrum of policies with the policy of free trade and
protectionism.
2. Which of the following statements is most likely the reason why a country engage in international
trading?
c. Due to the unlimited needs and wants of the people but has a limited resources.
d. A country is engage in trading because they were being left behind by other countries.
3. This is the exchange of capital, goods and services within the country.
4. According to this theory for the nation to become rich and powerful, it needs to export more and
import less.
5. He contented that with free trade, each nation could specialize in the production of those
commodities in which it had an Absolute Advantage, import those commodities in which it had Absolute
Disadvantage
6. These reasons were imposed by the government to limit the country's trading scheme with others:
i. A country enjoys unemployment and regards import competition as a potential source of that
unemployment.
ii. A country is short of foreign exchange reserves and sees increased import quota as apotential source
of new revenue.
7. It is a protectionist tariff that a domestic government imposes on foreign imports that it believes are
priced below fair market value.
8. Countries specialize and export those goods and services where they have comparative advantage and
import those commodities where they do not have comparative advantage. So what is the basis for
specialization and trade in general?
9. States that without trade fewer commodities would be available for the domestic market of a country,
and with trade more commodities would be available in the domestic market of a country.
10. It is a branch of economics, which together with international finance, forms the larger branch called
.
a. Banking c. Tourism
12. When an individual produce only those that they produced well, they reap the benefits of .
b. Mercantilism d. Specialization
14. A country that can produce a product or services at lower opportunity cost than another country is
said to have ____________ over that other country in particular good or service.
15. It is an argument that through excessive specialization, a country becomes over dependent on other
countries.
b. Patriotism argument
d. Anti-dumping argument