Quiz: Test Your Knowledge Of International Trade Terms!

Created by Editorial Team
The ProProfs editorial team is comprised of experienced subject matter experts. They've collectively created over 10,000 quizzes and lessons, serving over 100 million users. Our team includes in-house content moderators and subject matter experts, as well as a global network of rigorously trained contributors. All adhere to our comprehensive editorial guidelines, ensuring the delivery of high-quality content.
Learn about Our Editorial Process
| By Smriti Singh
Smriti Singh, Quiz Creator
Smriti is a talented member of ProProfs.com, known for her ability to create captivating quizzes. Her keen eye for detail and creativity ensures that each quiz is engaging and educational. Smriti is passionate about producing high-quality content that entertains and informs users, making her quizzes a favorite among audiences.
Quizzes Created: 859 | Total Attempts: 708,297
| Attempts: 418
SettingsSettings
Please wait...
  • 1/15 Questions

    What does GATT stand for in the context of international trade?

    • General Agreement on Tariffs and Trade
    • Global Association of Trade and Treaties
    • Group of All Trade Transactions
    • General Agreement on Trade and Taxes
Please wait...
About This Quiz

Test your knowledge of international trade terms with this engaging International Trade Terms Quiz! Challenge yourself with these interesting multiple-choice questions covering essential concepts and terminology related to global trade.

From trade surpluses and deficits to INCO terms and trade remedies, this quiz will assess your understanding of the intricacies of international commerce. Choose from four options for each question and find out how well-versed you are in the world of international trade.

Whether you're a student, professional, or just curious about international economics, this International Trade Terms Quiz offers an enjoyable way to test and expand your knowledge. Explore the fascinating realm of international trade terms and see how much you know!

Quiz: Test Your Knowledge Of International Trade Terms! - Quiz

Quiz Preview

  • 2. 

    What does FOB stand for in international trade?

    • Free on Board

    • Freight on Board

    • Forward on Board

    • Free of Brokerage

    Correct Answer
    A. Free on Board
    Explanation
    FOB indicates that the seller is responsible for the cost and risk of the goods until they are loaded on the vessel.

    Rate this question:

  • 3. 

    What is the exchange of goods and services between countries without using currency?

    • Barter trade

    • Countertrade

    • Bilateral trade

    • Foreign exchange

    Correct Answer
    A. Barter trade
    Explanation
    In barter trade, goods and services are exchanged directly without involving currency.

    Rate this question:

  • 4. 

    Which agreement promotes free trade by reducing tariffs and trade barriers?

    • NAFTA

    • The General Agreement on Tariffs and Trade (GATT)

    • OPEC (Oil Producing Exporting Countries)

    • EU (European Union)

    Correct Answer
    A. The General Agreement on Tariffs and Trade (GATT)
    Explanation
    The General Agreement on Tariffs and Trade (GATT) is a legal agreement between many countries, whose overall purpose was to promote international trade by reducing or eliminating trade barriers such as tariffs or quotas.

    Rate this question:

  • 5. 

    What is the term for a tax imposed on imported goods?

    • Import duty

    • Import tariff

    • Export tax

    • Import quota

    Correct Answer
    A. Import tariff
    Explanation
    Tariffs are taxes on imports to protect domestic industries and raise revenue for the government.

    Rate this question:

  • 6. 

    Which trade term indicates that the seller is responsible for all costs and risks until the goods reach the buyer's location?

    • EXW (Ex Works)

    • CIF (Cost, Insurance, Freight)

    • Delivered-at-place (DAP)

    • FCA (Free Carrier)

    Correct Answer
    A. Delivered-at-place (DAP)
    Explanation
    Delivered-at-place (DAP) refers to an arrangement wherein the seller covers the costs and takes on the risks of moving product to the buyer's location.

    Rate this question:

  • 7. 

    The trade term "INCOTERMS" is associated with which aspect of international trade?

    • Customs valuation

    • Contract enforcement

    • Terms of delivery

    • Payment methods

    Correct Answer
    A. Terms of delivery
    Explanation
    INCOTERMS define the responsibilities and obligations of buyers and sellers regarding the delivery of goods.

    Rate this question:

  • 8. 

    What term describes a situation where a country can produce a good more efficiently and at a lower cost?

    • Absolute advantage

    • Comparative advantage

    • Balance of trade

    • Terms of trade

    Correct Answer
    A. Absolute advantage
    Explanation
    Absolute advantage describes a situation where a country can produce a good more efficiently and at a lower cost than another country. This concept, introduced by Adam Smith, refers to the superior production capability of a country in terms of using fewer resources to produce a particular good.

    Rate this question:

  • 9. 

    Which term refers to the total value of a country's exports minus imports?

    • Trade surplus

    • Balance of trade

    • Net exports

    • Trade barrier

    Correct Answer
    A. Net exports
    Explanation
    Net exports represent the value of goods or services exported minus those imported by a country during a specific period. 

    Rate this question:

  • 10. 

    What term refers to the minimum price set by the government for certain imported goods?

    • Quota

    • Subsidy

    • Price controls

    • Trade surplus

    Correct Answer
    A. Price controls
    Explanation
    A price controls is a minimum price set by the government to support the domestic market and producers.

    Rate this question:

  • 11. 

    The document that provides detailed information about a shipment is called:

    • An air waybill (AWB) 

    • Certificate of origin (CO)

    • Proforma invoice (PI)

    • Shipping manifest 

    Correct Answer
    A. An air waybill (AWB) 
    Explanation
    An air waybill (AWB) is a document that accompanies goods shipped by an international air courier to provide detailed information about the shipment and allow it to be tracked. 

    Rate this question:

  • 12. 

    The WTO dispute settlement system can authorize the use of retaliatory measures, also known as:

    • Trade sanctions

    • Trade remedies

    • Trade embargoes

    • Trade barriers

    Correct Answer
    A. Trade sanctions
    Explanation
    Trade sanctions can be authorized as retaliation against non-compliance with trade agreements.

    Rate this question:

  • 13. 

    What is a trade arrangement where a company allows another company to use its intellectual property in exchange for a fee?

    • Licensing

    • Franchising

    • Outsourcing

    • Countertrade

    Correct Answer
    A. Licensing
    Explanation
    A licensing agreement allows one party (the licensee) to use and/or earn revenue from the property of the owner (the licensor). Licensing agreements generate revenues, called royalties, earned by a company for allowing its copyrighted or patented material to be used by another company.

    Rate this question:

  • 14. 

    Which term describes a tax or duty imposed on exports by the exporting country?

    • Export duty

    • Export tariff

    • Import tax

    • Import duty

    Correct Answer
    A. Export duty
    Explanation
    Export duty is a tax or duty imposed on goods leaving a country and is paid by the exporter.

    Rate this question:

  • 15. 

    In international trade, what is a voluntary export restriction imposed by the exporting country?

    • Trade embargo

    • Trade subsidy

    • Countervailing duty

    • Export quota

    Correct Answer
    A. Trade subsidy
    Explanation
    A trade subsidy is a financial assistance given to exporters to make their products more competitive.

    Rate this question:

Quiz Review Timeline (Updated): Jul 4, 2024 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Jul 04, 2024
    Quiz Edited by
    ProProfs Editorial Team
  • Aug 01, 2023
    Quiz Created by
    Smriti Singh
Back to Top Back to top
Advertisement
×

Wait!
Here's an interesting quiz for you.

We have other quizzes matching your interest.