Understanding Foreign Trade Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. Colombia produces the best and lowest cost coffee in the world. This gives Colombia a _____ over other nations.

Question 2 2. When the United States and Canada can import and export products across its border with no restrictions, it is called _____.

Question 3 3. Why would a country wish to pursue open trade policies?

Question 4 4. When a nation with low labor costs and few government restrictions on business enacts open trade agreements, which of these will likely happen?

Question 5 5. _____ agreements work to remove additional taxes and limitations on exported goods, such as tariffs, duties and quotas.

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Question 6 6. International trade is:

Question 7 7. The United States exports which of the following?

Question 8 8. _____ are goods that are produced in your own country and shipped to another country for _____.

Question 9 9. Why do most countries have to import goods from other countries?

Question 10 10. What is an import?

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Question 11 11. Which is NOT a benefit of importing goods?

Question 12 12. Which of the following is NOT an example of an import?

Question 13 13. Which of the following is an example of a trade deficit?

Question 14 14. Why might a country import goods instead of making everything itself?

Question 15 15. How are quotas different from tariffs?

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Question 16 16. Why is a tariff imposed?

Question 17 17. The World Trade Organization essentially replaced which of the following?

Question 18 18. Which global organization helps countries and producers of goods deal fairly and smoothly in conducting their business across international borders?

Question 19 19. The purpose of the World Trade Organization is to do what?

Question 20 20. In what year was the World Trade Organization officially created?

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Question 21 21. This international trade document is similar to an order summary, detailing the contents of your purchase and the price of each item.

Question 22 22. As an international trade document, a bill of lading provides what?

Question 23 23. As an international trade document, what does an import/export license allow you to do?

Question 24 24. If you want to make a payment arrangement with an exporter, you might consider using this international trade document.

Question 25 25. A parts company in Mumbai sets up a trading agreement with a tools company in New Delhi. What type of trade is this?

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Question 26 26. If setting up trade between India and China, which of the following would be the most advantageous?

Question 27 27. In external or international trade between India and Japan, how is the value of goods determined?

Question 28 28. Which of the following is NOT an advantage of international trade?

Question 29 29. Which of the following is NOT a way for a country to be successful at international trade?

Question 30 30. Balance of trade is:

Understanding Foreign Trade Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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