International trade is based on the idea that ?

Related Mcqs:

1. When free trade areas are set up the member countries trade with each other grows faster than their trade with other countries This is due to what economist call ?

   A. trade diversion
   B. trade channeling
   C. trade creation and trade diversion
   D. trade creation

2. Which round of international trade negotiations resulted in the creation of the World Trade Organization ?

   A. Kennedy Round of 1964-1967
   B. Tokyo Round of 1973-1979
   C. Uruguay Round of 1986-1993
   D. Doha Round of 2003-2007

3. The idea that the money supply should change to accommodate changes in aggregate demand is associated with the idea of ?

   A. Margaret Thatcher
   B. Ronald Reagan
   C. Milton Friedman
   D. John Maynard Keynes

4. International trade is based on the nation that ?

   A. Different currencies are an obstacle to international trade
   B. Goods are more mobile internationally than are resources
   C. Resources are more mobile internationally that are goods
   D. A country’s exports should always exceed its imports

5. Should international transportation costs decrease the effect on international trade would include a (an) ?

   A. increase in the volume of trade
   B. Smaller gain from trade
   C. Decline in the income of home producers
   D. Decrease in the level of specialization in production

6. How is termed equal rights of trade of trade without giving monopolies or preferences to an individual country ?

   A. Open door market
   B. Open door country
   C. Open sky market
   D. Free economy

7. Given free trade, small nations tend to benefit the most from trade since they ?

   A. Are more productive than their large trading partners
   B. Are less productive than their large trading partners
   C. Have demand preferences and income levels lower than their large trading partners
   D. Realize terms of trade lying near the MRTs of their large trading partners

8. Under free trade, Canada would not realize any gains from trade with Sweden if Canada ?

   A. Trades at Canada’s marginal rate of transformation
   B. Trade at Sweden’s marginal rate of transformation
   C. Specializes completely in the production of its export good
   D. Specializes partially in the production of its exports goods

9. Which approach predicts that is an economy operates a full employment and faces trade deficit currency devaluation will improve the trade balance only if domestic spending is cut thus freeing resources to produce exports ?

   A. the absorption approaches
   B. the Marshall Lerner approach
   C. the monetary approach
   D. the elasticities approach

10. When did World Trade Organization replace General Agreement on Tariffs and Trade (GATT)?

    A. 1st January 1995
    B. 1st January 1998
    C. 1st December 1999
    D. 1st June 2000

    Submitted by: Syed Nizakat Ali Shah