A comprehensive quiz designed for International Trade and Business majors, covering core concepts from trade theories to global finance and strategy.

International Trade and Business Knowledge Test

Which economic theory suggests that countries should specialize in producing goods for which they have a lower opportunity cost, even if another country has an absolute advantage in all goods?

A government policy that limits the quantity of a particular good that can be imported over a specific period is known as a:

United Nations Conference on Trade and Development UNCTAD

Which international organization is primarily responsible for establishing and enforcing rules for global trade, aiming to reduce tariffs and other trade barriers?

Exports become cheaper, imports become more expensive.

Exports become more expensive, imports become cheaper.

Both exports and imports become more expensive.

If the value of a country's currency appreciates, what is the likely impact on its exports and imports, assuming other factors remain constant?

When a company establishes a new foreign subsidiary from scratch, rather than acquiring an existing firm, this type of foreign direct investment is called:

What is the highest level of economic integration where member countries not only eliminate internal trade barriers and have a common external trade policy, but also allow free movement of labor and capital among themselves?

The practice of distributing different stages of production of a good or service across multiple countries to optimize costs and efficiency is known as:

According to Hofstede's cultural dimensions theory, a society that values strong social ties, group loyalty, and extended families is high in:

Which component of the Balance of Payments records a country's net income from investments abroad and net foreign transfers?

The concept that multinational corporations should consider the social and environmental impact of their operations beyond purely financial objectives is known as: