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QUIZ
INTERNATIONAL TRADE
1. A Vietnamese shoe company signs a selling contract with a Japanese
company, thereby it will sell its shoes to another Vietnamese company. This
transaction is considered as:
A. Switch trade
B. On-the-spot export
C. Re-export
D. Export
2. A Vietnamese shoe company imports a container of leather from a
Taiwanese company. It uses those leather to produce shoes and then exports
back finished shoes to that Taiwanese company. This transaction is
considered as:
A. International processing
B. Re-export
C. Export
D. Switch trade
3. A Vietnamese shoe company imports a container of embroider from a
Chinese company and then sells that container to a Lao company without
doing any import procedure to Vietnam and export procedure from Vietnam.
This transaction is considered as:
A. Re-export
B. Switch trade
C. On-the-spot export
D. International processing
4. Countries trade with each other because they are ________ and because of
________.
A. different, costs
B. similar, scale economies
C. different, scale economies
D. similar, costs
E. None of the above.
5. The Ricardian theory of comparative advantage states that a country has a
comparative advantage in widgets if
A. output per worker of widgets is higher in that country.
B. that country's exchange rate is low.
C. wage rates in that country are high.
D. the output per worker of widgets as compared to the output of
some other product is higher in that country.
E. Both B and C.
6. In order to know whether a country has a comparative advantage in the
production of one particular product, we need information on at least unit
labor requirements
A. one
B. two
C. three
D. four
Questions from 7 to 10 use the following information
