1. Active Bicycle Company has just received notice that a shipment of 300 bicycles has been rejected by the customs administration of the recipient country because the bikes did not include a metal plate surrounding the chain. What category of nontariff barriers primarily uses such quality issues as a trade barrier? *

a. Quotas

b. Licenses

c. Embargoes

d. Boycotts

e. Standards

2. Considering the definition of consumer surplus, what information is needed to measure consumer surplus using real world data? *

a. Market price, quantity demanded, and the slope (or shape) of the demand curve.

b. Market price, the slope (or shape) of the demand curve, and the slope (or shape) of the supply curve.

c. Market price, quantity supplied, and the slope (or shape) of the supply curve.

d. Market price, quantity supplied, and quantity supplied.

3. What are three Fundamental principles of the GATT WTO? *

a. Most-favoured nation, National treatment, Fair Competition

b. Most-favoured nation, National treatment, Rules of Origin

c. Most-favoured nation, National treatment, Transparency

d. Most-favoured nation, National treatment, Preferential Tariff

4. When the expansion of product in an industry within a specific geographic area lowers the long-run average cost of each individual firm in the industry in the same area, it is called? *

a. Internal Scale economies

b. External Scale economies

c. Monopolistic competition

d. Agglomeration economies

e. Both a and b

f. Both b and d

5. Japan's trade data for 2019 shows that, Japan has exported $103B and imported $11.9B. using this information, what is Japan IIT share for car in 2019? *

a. 23.8

b. 0.793

c. -1.26

d. 0.207

6. What is a basic criticism of global financial institutions? *

a. They failed to focus on the aim of reducing inequalities between rich and poor countries.

b. They failed to help the Asian countries substantially when they underwent a major financial crisis in the 1990s.

c. They failed to respect the autonomy of member nations by deeming any bilateral agreements between members as illegal if made without their approval.

d. They failed to foresee and counter the unintended effects of globalization like pollution, exploitation, and cultural extinction.

e. They failed to suppress the terrorists who were responsible for the attack in London that coincided with the G8 summit.

7. What are the main objectives of SAPTA under SAARC? *

a. To promote and sustain mutual trade among developing countries

b. To Promote the welfare of the peoples of Asia and improve their quality of life

c. To develop economic co-operation among developing countries

d. Cooperate with international and regional organization with similar aims and purposes.

e. Both a and c

f. All of the above

8. According to the International Product Life Cycle Theory, the country(ies) most likely to manufacture a product that has been recently developed (one that is the result of a brand-new design and uses patented technology) and is in its first commercialization year, is (are)? *

a. The country of innovation only.

b. Developing countries.

c. Any country with the manufacturing technology necessary to manufacture it

d. Other developed countries.

e. None of the above

9. SAARC stands for? *

a. South Asian Association of Regional Collaboration

b. Southern Africa Association of Regional Cooperation

c. Southeast Arab Association for Regional Cooperation

d. Southeast Asian Association for Regional Cooperation

e. South Asian Association for Regional Cooperation

10. In what type of Economic Blocs is CARICOM categorized? *

a. Free Trade Area

b. Custom Union

c. Common Market

d. Economic

11. What is the difference between CEFTA and CUSMA in nature? *

a. CEFTA is categorized as a custom union while CUSMA is a free trade agreement.

b. CEFTA is categorized as a common market while CUSMA is a free trade agreement.

c. Both are categorized as free trade agreement

d. CEFTA is categorized as a free trade agreement while CUSMA is a custom union.

e. Both are categorized as custom union.

12 .Several nations that have become frustrated with the slow progress of the most recent round of WTO trade negotiations are. *

a. Negotiating bilateral and regional trade agreements.

b. Forming a rival organization.

c. Refusing to accept all the rules and regulations imposed by the WTO.

d. Using legal means to sue the WTO.

e. Opting out of membership in the WTO.

13. Which of the following statements best describes Globalization? *

a. An ideology that advocates the liquidation of nations

b. The reality of being interconnected

c. A transformation that has changed the fundamentals of how business is conducted around the world.

d. A system that has quickly changed transformation of technology in trade

14. Which of following is NOT a benefit of globalization? *

a. Access to skilled labour expertise

b. Access to cheaper resources

c. Reduction in production costs

d. Reduction in labour disputes

15. It is argued that freer trade results national gain for countries adopting such a policy, which of the following is/are considered as recourses of the gain achieved by freer trade policy? *

a. With freer trade, national resources can be reallocated to producing products that can be export.

b. Freer trade results in varieties of product being available to domestic consumers.

c. Freer trade increases employment in importing country

d. Both a and b

e. All of the above

16. Which of the following statements describe Ricardo's theory of trade? *

a. A country exports any goo whose production requires fewer labour hours per unit than being produced in foreign countries.

b. A country will export those products whose relative labour productivity is high and imports products whose relative labour productivity is low.

c. A country that has large amounts of resources needed to produce a product/service, should export those products.

d. Both b and c

e. None of the above

17.. Which of the following statements is/are CORRECT? *

a. A country's demand for imports of a product is the difference between its domestic demand and supply.

b. A country's export supply for a product depends on its international market price.

c. To gain trade benefits, countries should produce and export Goods & Services for each possible international market price.

d. Both a and b

e. All of the above

18. If a country refuses to sell goods to its neighboring country based on the belief that the neighboring country harbors radicals and terrorists. In this case, the refusal is referred to as a(n)?

a. Embargo

b. Boycott

c. VER

d. Quota

e. An orderly market restriction

19. In the process of globalization, ____________ resulted in increased convergence and interconnectivity. *

a. The World Wide Web

b. Instant Communication

c. Technology

d. Intranet

e. Extranet

20. Considering the definition of producer surplus, what information is needed to measure producer surplus using real world data? *

a. Market price, quantity demanded, and the slope (or shape) of the demand curve.

b. Market price, the slope (or shape) of the demand curve, and the slope (or shape) of the supply curve.

c. Market price, quantity supplied, and the slope (or shape) of the supply curve.

d. Market price, quantity supplied, and quantity supplied.

21. considering the Japan IIT Share calculated being 0.16, how do you explain this result? *

a. There is no intra-industry trade in car between Japan and other countries

b. There is high intra-industry trade in car between Japan and other countries

c. There is low intra-industry trade in car between Japan and other countries

d. Japan tends to have low two-way trade in car

e. Both a and d

f. Both c and d

22. one of the main reasons that motivates IT companies move to Silicon Valley is because they can take advantage of the specialized labor and infrastructure already in place. This is an example of? *

a. Scale Economies

b. Internal Scale Economies

c. External Scale Economies

d. Both a and c

f. None of the above

23. TRIAD consists of the following economies? *

a. The European Union, NAFTA, and Japan/China

b. The European Union, BRIC and Japan

c. The European Union, the United States, BRIC

d. The European Union, the United States and Japan/China

24. According to Mercantilism theory of trade a country: *

a. Should limit its export, so that more products are available for local consumption.

b. Should Export as much as possible to receive more gold and silver to pay for its import.

c. Should regulate its trade to promote domestic industries.

d. Both a and b

e. None of the above

25. What does GATT use as the primary method to solve global trade problems? *

a. GATT works with government agencies of trade members.

b. GATT uses coercion.

c. GATT uses consultation.

d. GATT implements the legislative agenda of trade members.

e. GATT creates binding agreements between member nations.