MCQs of International Relations - Trade and Finance – Multiple Choice Question

Question 1 of 46

1. Question

Which of the following in an example of intellectual property?

electronics equipment
computer hardware
textiles
trademarks

Question 2 of 46

2. Question

Negotiations about intellectual property rights are most important to:

the United States.
the Czech Republic.
Colomibia.
India.

Question 3 of 46

3. Question

Trade in services includes which of the following?

computer hardware
insurance
weapons
textiles

Question 4 of 46

4. Question

The General Agreement on Tariffs and Trade was replaced by the

World Trade Organization.
North American Free Trade Agreement.
Multilateral Trade Agreement.
General Agreement on Trade and Development.

Question 5 of 46

5. Question

___________ emphasizes conflicting interests in economic exchanges.

Neorealism
Liberalism
Keynesian economics
Mercantilism

Question 6 of 46

6. Question

In a centrally planned economy,

business leaders set production quotas and report them to government, which holds them accountable.
government officials set prices.
supply and demand are key indicators of prices and production levels.
all of these are the case: government officials set prices; business leaders set production quotes and report them to government; and supply and demand are key indicators of prices and production levels.

Question 7 of 46

7. Question

Common market imperfections in international trade include

taxation.
sanctions.
corruption.
all of these: corruption, taxation, and sanctions.

Question 8 of 46

8. Question

There are just a few large sellers of a product in a(n):

plutocracy.
autarky.
monopoly.
oligopoly.

Question 9 of 46

9. Question

The U.S. government agency responsible for determining whether low-priced imports are unfair or have hurt U.S. industry is the

International Trade Commission.
Commerce Department.
Fair Trade Council.
House Commerce Committee.

Question 10 of 46

10. Question

A new entry into an industry sector that is mature in other states and, therefore, is often protected by its government is a(n):

start-up firm.
service industry.
venture capital firm.
infant industry.

Question 11 of 46

11. Question

Hard currency is:

gold or silver bullion.
petrodollars.
money with a fixed exchange rate.
money that can be readily converted to leading world currencies.

Question 12 of 46

12. Question

What economic principle refers to the way that states differ in their abilities to produce certain goods because of differences in natural resources, labor force characteristics, technology, and other such factors?

consumer economics
Freedman economics
Keynesian economics
comparative advantage

Question 13 of 46

13. Question

Which of the following is one of the world’s most important currencies?

German mark
British pound
Russian ruble
the EU's euro

Question 14 of 46

14. Question

Currently, national currencies are valued against

gold prices.
the euro.
silver prices.
each other

Question 15 of 46

15. Question

Which of the following is an example of portfolio investment?

buying stocks and bonds
lowering tariff barriers
paying subsidies
building a factory

Question 16 of 46

16. Question

The state in which an MNC has its headquarters is called the

source state.
host state.
incorporated country.
home country.

Question 17 of 46

17. Question

Which of these groups welcomes the free trade that comes with globalization?

workers in industrialized countries
human rights NGOs
environmental groups
None of the these answers is correct.

Question 18 of 46

18. Question

Foreign investments in and by a country are referred to as

government transactions.
the capital account.
capital flows.
the current account.

Question 19 of 46

19. Question

Almost all MNCs are based in:

Latin America.
G-8 states.
Japan.
Africa.

Question 20 of 46

20. Question

A _________ is responsible for maintaining the value of a state’s currency to the extent that it can by limiting the amount of money printed and avoiding inflation.

regulatory commission
central bank
fiscal policy
currency policy

Question 21 of 46

21. Question

What is the name of the U.S. central bank?

Bank of America
Ameribank
First National Bank of America
Federal Reserve

Question 22 of 46

22. Question

What institution coordinates international currency exchange, the balance of international payments, and national accounts?

International Monetary Fund
All these answers are correct.
World Bank
World Exchange Organization

Question 23 of 46

23. Question

__________ involves tangible goods such cannot be traded and moved freely like paper investments.

Portfolio investment
Fiduciary investment
Foreign direct investment
Currency investment

Question 24 of 46

24. Question

A unilateral move to reduce the value of one’s own currency by changing a fixed or official exchange rate is known as

revaluation.
reduction.
restructuring.
devaluation.

Question 25 of 46

25. Question

Which of these is NOT a form of standing wealth?

hard currency reserves
homes
factories
None of these answers is correct.

Question 26 of 46

26. Question

A tax imposed on certain types of imported goods is

a tariff
a surcharge
a subsidy
a severance tax.

Question 27 of 46

27. Question

“Autarky” is (are):

interdependence.
state-sponsored sanctions.
self-reliance.
import reliant.

Question 28 of 46

28. Question

Why is it difficult to apply and enforce sanctions in the international system?

There is no financial inventive to abide by the sanctions.
Broad multilateral support for international sanctions usually inspires the target of the sanctions to act against them.
If one state tries to use economic means of leverage to influence another, other states are damaged economically.
Refusing to participate in mutually profitable economic trade often harms oneself more than the target of one's actions, unless all other states follows suit.

Question 29 of 46

29. Question

Which of these nations illustrates the problems with autarky?

China
the United States
Singapore
France

Question 30 of 46

30. Question

Apart from the WTO, most international trade is governed by more specific international agreements: bilateral trade agreements and

global trade agreements.
reciprocity.
regional trade agreements.
interdependence.

Question 31 of 46

31. Question

Devaluation of a stat’s currency

increases the total portfolio value of foreigners who hod that currency
causes a drop in demand for that currency.
increases confidence in a state's ability to meet its debts.
is rarely a quick fix for financial problems in he short term.

Question 32 of 46

32. Question

If regional free-trade areas such as now exist in Europe and North America gain strength, and new ones arise,

the WTO will likely be replaced by the International Monetary Fund.
the more necessary the WTO will be.
a world-wide common market will soon be achieved.
the WTO may be weakened.

Question 33 of 46

33. Question

Keynesian economics advocates

stimulus spending to increase inflation.
deficit reduction to increase economic growth.
deficit spending to stimulate the economy.
fiscal restraint to bring down inflation.

Question 34 of 46

34. Question

Which of the following is NOT and attribute of the Special Drawing Right?

It is linked in value to a basket of several key international currencies.
It can be owned by states or companies, but not by individuals.
It is the closest thing to a world currency that exists.
It is created in limited amounts by the IMF.

Question 35 of 46

35. Question

Why are governments, even when acting together, at a disadvantage when intervening in international currency markets?

They can't use state funds to buy or sell currencies.
All of their movements are tightly regulated by the IMF.
Developing countries oppose the manipulation of markets by developed countries.
The control only a small fraction of the money moving on such markets.

Question 36 of 46

36. Question

In recent years, to balance its trade deficit, the United States has

"exported" currency to other countries.
greatly increased tariffs on imports from Asia.
increased export of goods and services by offering subsidies to those industries.
invested heavily in the euro and the yen.

Question 37 of 46

37. Question

What are cross-border transactions?

Movement across borders of countries of goods, people, money, investments etc.
Globalization
International trade
None of the above

Question 38 of 46

38. Question

What are transborder transactions?

Transactions that occur through the web
Transactions that occur across open borders
Transaction that occur globally across widely dispersed locations
All of the above

Question 39 of 46

39. Question

What is Europeaquity?

A stock or share
A bond denominated in a currency that is alien to a substantial proportion of the underwrites through whom it is distributed and sold
A share issued simultaneously in different stock markets
A financial contract that derives its value from an underlying asset

Question 40 of 46

40. Question

How is protectionism manifest?

Through capital controls
Through import tariffs
Through immigration controls
All of the above

Question 41 of 46

41. Question

What are open-border transaction?

Transactions where anything goes
Transactions where global trade and finance replace global trade and finance
Transactions where international trade and finance replace global trade and finance
Protectionist transactions

Question 42 of 46

42. Question

Which of the following are major public global government agencies for trade and finance?

G8
IOSCO
WHO
a and b

Question 43 of 46

43. Question

What is global sourcing?

Companies export material throughout the global
Companies find materials, components and services from anywhere in the world
Companies pool resources to find new sources
None of the above

Question 44 of 46

44. Question

What is a Special Drawing Right?

A bond denominated in a currency alien to underwrites
A loan provided in special Euromarkets.
The supraterritorial denomination issued throughout the IMF (used as its unit of account)
Site for financial business offering tax reductions and subsidies

Question 45 of 46

45. Question

How do government lure foreign investment?

By devaluing their currency
By relaxing labour and environmental standards
By reducing restrictions on repatriation of profits
a and c

Question 46 of 46

46. Question

Order the following events in global trade and finance.
i.Establishment of electronic of electronic stock exchange
ii.Formation of WTO
III.The first McDonalads

i, ii, iii
ii, iii, i
iii, i, ii
iii, ii, i

International Relations - Trade and Finance

Quiz-summary

Information

Results

Categories