International Trade MCQ With Answers PDF: International Trade is one of the important sub-topic covered in Commerce. International Trade MCQ with answers updated in 2022 will help MBA, BBA, B Com, M Com, MMS, PGDM, and International Business specialization students. These MCQs cover MCQs on sub-topics like foreign trade and multinational trade.

These Multiple Choice Questions (MCQs) and Answers on International Trade are based on International Trade in the undergraduate or graduate level International Business course and exams such as Management entrance tests like Management Aptitude Test (MAT), Common Admission Test (CAT), FMS, IIFT, XLRI, XAT, MBA entrance exam, etc. and International Trade related entrance initiative exams like SSC CGL and UPSC CSE (Civil Services Examination) Computer-based test (CBT).

International Trade MCQ With Answers

1. In International Trade, IMF stands for ___________.

A. International Monetary Fund

B. International Money Fund

C. International Market Fund

D. International Monetary Firm

Answer: International Monetary Fund

2. An import tariff is a tax or duty levied on ___________ commodities.

A. Imported

B. Exported

C. Transported

D. Both A & B

Answer: Imported

3. An _____________ is a tax or duty levied on exported commodities.

A. Import Tariff

B. Export Tariff

C. Transport Tariff

D. Free Trade Tariff (FTT)

Answer: Export Tariff

4. __________refers to purchase of goods from a foreign country.

A. Foreign Trade

B. Export Trade

C. Import Trade

D. EXIM Trade

Answer: Import Trade

5. _______is a fixed percentage of the value of the traded commodity.

A. Anti-dumping duty

B. Specific tariff

C. Ad Valorem tariff

D. A compound tariff

Answer: Ad Valorem tariff

6. In most countries, foreign trade represents a significant share of ______

A. EXIM

B. FDI

C. Income Per Capita

D. GDP

Answer: GDP

7. Cash grants, loans at a low rate,s and tax holidays are examples of ______.

A. Quotas

B. Tarifs

C. Subsidies

D. Discounts

Answer: Subsidies

8. _________refers to the sale of goods to a foreign country.

A. Foreign Trade

B. Export Trade

C. Import Trade

D. EXIM Trade

Answer: Export Trade

9. ________is a combination of an ad valorem and specific tariff.

A. Anti dumping tariff

B. Specified Valorem Tariff

C. EXIM Tariff

D. A compound tariff

Answer: A compound tariff

10. Foreign trade is an exchange of capital, goods, and services across _________ borders or territories

A. Intranational

B. National

C. International

D. Both A & C

Answer: International

11. _______ refers to goods imported from one country and exported to another country.

A. Third Party Trade

B. Entrepot trade

C. Export Trade

D. EXIM Trade

Answer: Entrepot trade

12. International trade contributes and increases the world _________

A. Population

B. Inflation

C. Economy

D. Trade Barriers

Answer: Economy

13. The ratio of trade to GDP was as high as _________ in 1913.

A. 22.1

B. 11.2

C. 26.3

D. 33.2

Answer: 22.1

14. Free international trade maximizes world output through________.

A. Countries reducing various taxes imposed.

B. Countries specializing in production of goods they are best suited for.

C. Perfect competition between countries and other special regions

D. The diluting the international business laws & conditions between countries.

Answer: Countries specializing in production of goods they are best suited for.

15. Domestic company limits it’s operations to ___________ political boundaries.

A. International

B. National

C. Transnational

D. Global

Answer: National

16. Trade between two or more than two countries is known as ________.

A. Internal Business

B. External Trade

C. International Trade

D. Unilateral Trade

Answer: International Trade

17. _____refers to the tax imposed on imports.

A. Imported Tax

B. Tariffs

C. Subsidies

D. Import Quotas

Answer: Tariffs

18. _____ means selling the products at a price less than the ongoing price in the market.

A. Quota

B. Tariff

C. Subsidy

D. Dumping

Answer: Dumping

19. _______is the oldest International Trade theory.

A. Country Similarity Theory

B. Theory of Absolute Cost advantage

C. Product Life Cycle Theory

D. Mercantilism Theory

Answer: Mercantilism Theory

20. A voluntary export restraint is the opposite form of _____.

A. Import quotas

B. International tariffs

C. Subsidies

D. Dumping

Answer: Import quotas

21. The international trade between ___________ is like a vast game of beggar my neighbor.

A. Exporter & Importer

B. Two Countries

C. Two world wars

D. Country’s allies and enemies

Answer: Two world wars

22. ____ is a group of countries that agree to abolish all trade restrictions and barriers.

A. Common market

B. Economic Union

C. Custom Union

D. Free Trade Area

Answer: Free Trade Area

23. EU stands for _____

A. Export Union

B. European Union

C. EXIM Union

D. Export Unit

Answer: European Union

24. The abbreviation SAARC stands for _______

A. South American Association for Regional Cooperation

B. South African Association for Regional Cooperation

C. South ASEAN Association for Regional Cooperation

D. South Asian Association for Regional Cooperation

Answer: South Asian Association for Regional Cooperation

25. The full form of WTO is __________

A. World Tariff Organization

B. World Trade Organization

C. Western Trade Organization

D. World Transport Organization

Answer: World Trade Organization

26. ________was replaced by WTO on January 1, 1995.

A. NAFTA

B. IMF

C. IRDB

D. GATT

Answer: GATT

27. In International Trade, Full form of NAFTA is ___________.

A. National American Free Trade Agreement

B. North Asian Free Trade Agreement

C. New Anti-Tariff Free Trade Agreement

D. North American Free Trade Agreement

Answer: North American Free Trade Agreement

28. AFTA is ___________.

A. ASEAN Free Trade Area

B. American Free Trade Area

C. Asian Free Trade Area

D. Agreement for Free Trade Area

Answer: ASEAN Free Trade Area

29. ASEAN stands for ___________.

A. The Association of Southeast American Nations

B. The Association of Southeast Asian Nations

C. The Agreement of Southeast American Nations

D. The Agreement of Southeast Asian Nations

Answer: The Association of Southeast Asian Nations

30. __________was established by a multilateral treaty of 23 countries in 1947.

A. WTO

B. UN

C. GATT

D. NAFTA

Answer: GATT (The General Agreement on Tariffs and Trade)

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