{"id":17297,"date":"2022-04-02T15:43:13","date_gmt":"2022-04-02T10:13:13","guid":{"rendered":"https:\/\/scholarsclasses.com\/blog\/?p=17297"},"modified":"2026-02-09T20:12:49","modified_gmt":"2026-02-09T14:42:49","slug":"introduction-to-international-trade-mcq","status":"publish","type":"post","link":"https:\/\/scholarsclasses.com\/blog\/introduction-to-international-trade-mcq\/","title":{"rendered":"40+ Introduction to International Trade MCQ | (Free Resource) Business Economics"},"content":{"rendered":"\n<h2 class=\"wp-block-heading has-text-align-center\">Introduction to International Trade MCQ<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" width=\"1024\" height=\"576\" data-src=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Introduction-to-International-Trade-MCQ-1024x576.webp\" alt=\"Introduction to International Trade MCQ\" class=\"wp-image-17325 lazyload\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/576;width:720px;height:auto\" title=\"\" data-srcset=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Introduction-to-International-Trade-MCQ-1024x576.webp 1024w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Introduction-to-International-Trade-MCQ-300x169.webp 300w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Introduction-to-International-Trade-MCQ-768x432.webp 768w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Introduction-to-International-Trade-MCQ-1536x864.webp 1536w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Introduction-to-International-Trade-MCQ-640x360.webp 640w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Introduction-to-International-Trade-MCQ.webp 1920w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" \/><figcaption class=\"wp-element-caption\">Introduction to International Trade MCQ<\/figcaption><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/business-economics-mcq\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/business-economics-mcq\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>MCQs on other topics of Business Economics <\/strong><\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.icsi.edu\/media\/webmodules\/modelquestionpaper\/CMA-MCQ%20100.pdf\" data-type=\"URL\" data-id=\"https:\/\/www.icsi.edu\/media\/webmodules\/modelquestionpaper\/CMA-MCQ%20100.pdf\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Cost Accounting MCQs pdf <\/strong><\/a><\/li>\n<\/ul>\n\n\n\n<p><strong>1. International trade increases the welfare of _______ .<br><\/strong>a) all participating countries<br>b) only exporting countries<br>c) only importing countries<br>d) none of the above<\/p>\n\n\n\n<p><strong>2. International trade increase the _________ of participating countries.<br><\/strong>a) output <br>b) profit <br>c) risks<br>d) none of the above<\/p>\n\n\n\n<p><strong>3. According to David Ricardo, international trade is beneficial under _________ cost. <br><\/strong>a) comparative<br>b) absolute<br>c) equal difference in cost<br>d) none of the above<\/p>\n\n\n\n<p><strong>4. David Ricardo\u2019s Theory assumes perfect mobility of labour ________ .<br><\/strong>a) within the country<br>b) between the participating countries<br>c) within and between the participating countries<br>d) none of the above<\/p>\n\n\n\n<p><strong>5. Comparative cost theory is static theory because it assumes _________ .<br><\/strong>a) there is no qualitative and quantitative change in inputs<br>b) labour is homogeneous within the country<br>c) there is no transport cost<br>d) none of the above<\/p>\n\n\n\n<p><strong>6. Ricardian theory measures comparative cost in terms of ________ .<br><\/strong>a) man days<br>b) money<br>c) input costs<br>d) all of the above<\/p>\n\n\n\n<p><strong>7. Ricardian theory assumes that labour is _________ within the country.<br><\/strong>a) homogeneous<br>b) heterogeneous<br>c) inefficient<br>d) all of the above<\/p>\n\n\n\n<p><strong>8. Ricardian theory can be extended to __________ . <br><\/strong>a) more than two countries<br>b) only two countries<br>c) only to developed nations<br>d) only to developing nations<\/p>\n\n\n\n<p><strong>9. Hecksher Ohlin theory on international trade can explain&nbsp;________ trade. <br><\/strong>a) inter-regional and international<br>b) only inter-regional<br>c) only international<br>d) none of the above<\/p>\n\n\n\n<p><strong>10. Commodity X is capital intensive, when in its production capital\/labour ratio is _____ than Commodity Y. <\/strong><br>a) greater<br>b) less<br>c) equal to<br>d) none of the above<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answers:<\/strong> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">1)all participating countries  2)output  3)comparative  4)within the country<\/mark> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"> 5)there is no qualitative and quantitative change in inputs  6)man days  7)homogeneous  8)more than two countries  9)inter-regional and international  10)greater<\/mark><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>11. Hecksher Ohlin theory cannot be applied to more than _________ .<br><\/strong>a) several commodities and several countries<br>b) two commodities<br>c) two countries<br>d) few countries<\/p>\n\n\n\n<p><strong>12. According to Hecksher Ohlin theory, product price depends on _________ .<br><\/strong>a) all of the given below<br>b) only factor intensity<br>c) only factor abundance<br>d) factor cost<\/p>\n\n\n\n<p><strong>13. According to Hecksher Ohlin theory, the international trade takes place due to difference in ______ . <br><\/strong>a) product price<br>b) labour efficiency<br>c) advanced technology<br>d) all of the above<\/p>\n\n\n\n<p><strong>14. In international trade ______ move between nations. <br><\/strong>a) commodities and not factors<br>b) factors of production<br>c) factors and commodities<br>d) none of the above<\/p>\n\n\n\n<p><strong>15. Terms of trade are expressed as a ratio of ________ .<br><\/strong>a) price index of exports and imports<br>b) foreign exchange receipts and payments<br>c) FDI and portfolio investments<br>d) none of the above<\/p>\n\n\n\n<p><strong>16. Terms of trade are favourable if the current index in comparison to the base year index is ________ .<br><\/strong>a) more<br>b) less<br>c) equal<br>d) none of the above|<\/p>\n\n\n\n<p><strong>17. Gross barter terms of trade takes into account _________ .<br><\/strong>a) trade items and unilateral payments<br>b) only trade items<br>c) only services<br>d) none of the above<\/p>\n\n\n\n<p><strong>18. Income terms of trade indicate increased capacity to __________ .<br><\/strong>a) import<br>b) export<br>c) investment<br>d) none of the above<\/p>\n\n\n\n<p><strong>19. Single factoral terms of trade takes into account changes in __________ .<br><\/strong>a) efficiency of factors of production of export goods<br>b) export prices,<br>c) import prices<br>d) demand for imports<\/p>\n\n\n\n<p><strong>20. Generally, the developing countries ________ terms of trade.<br><\/strong>a) suffer from adverse<br>b) enjoy favourable<br>c) ignore<br>d) none of the above)<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answers:<\/strong> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">11)several commodities and several countries  12)all of the given below  13)product price  14)commodities and not factors  15)price index of exports and imports  16)more  17)trade items and unilateral payments  18)import  19)efficiency of factors of production of export goods  20)suffer from adverse<\/mark><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>21. The gain from trade is maximum if the international terms of trade are _________ . <br><\/strong>a) nearer to the internal terms of trade of trading partner<br>b) nearer to the domestic terms of trade of importing country<br>c) equal to exporting country<br>d) none of the above.<\/p>\n\n\n\n<p><strong>22. An offer curve differs from _________ . <br><\/strong>a) usual demand and supply curves<br>b) usual demand curve<br>c) usual supply curve<br>d) none of the above<\/p>\n\n\n\n<p><strong>23. International trade increases the welfare of _________ .<br><\/strong>a) all participating countries<br>b) only exporting country<br>c) only importing country<br>d) only developed countries<\/p>\n\n\n\n<p><strong>24. International trade results in __________ . <br><\/strong>a) all of the given below<br>b) innovations<br>c) reduction in costs<br>d) diversifies consumption<\/p>\n\n\n\n<p><strong>25. Cultural changes due to international trade are __________ .<br><\/strong>a) positive and negative<br>b) only positive<br>c) only negative<br>d) none of the above<\/p>\n\n\n\n<p><strong>26. The concept of gross barter terms of trade was introduced by _______ .<br><\/strong>a) Frank Taussig<br>b) Alfred Marshall<br>c) Francis Edgeworth<br>d) John S. Mill<\/p>\n\n\n\n<p><strong>27. The concept of income terms of trade was introduced by _________ .<br><\/strong>a) Graeme S Dorrance<br>b) Frank W Taussig<br>c) David Ricardo<br>d) Francis Edgeworth<\/p>\n\n\n\n<p><strong>28. Utility terms of trade was introduced by _________ .<br><\/strong>a) Jacob Viner<br>b) Adam Smith<br>c) J. S. Mill<br>d) Frank Taussig<\/p>\n\n\n\n<p><strong>29. The concept of offer curves was introduced by __________ .<br><\/strong>a) A. Marshall and F Edgeworth<br>b) Adam Smith and David Ricardo<br>c) JohnS. Mill and John M Keynes<br>d)  None of the above<\/p>\n\n\n\n<p><strong>30. Terms of trade will be favourable to a country when __________ .<br><\/strong>a) all of the given below<br>b) its exports have inelastic demand<br>c) its imports have elastic demand<br>d) its supply of exports is elastic<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answer:<\/strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"><strong> <\/strong>21)nearer to the internal terms of trade of trading partner  22)usual demand and supply curves  23)all participating countries  24)all of the given below  25)positive and negative  26)Frank Taussig  27)Graeme S Dorrance  28)Jacob Viner  29)A. Marshall and F Edgeworth  30)all of the given below<\/mark><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>31. The offer curve of a country is based on _________ . <br><\/strong>a) relative prices of two commodities<br>b) price of exports<br>c) price of imports<br>d) supply of exports<\/p>\n\n\n\n<p><strong>32. A country will have unfavourable terms of trade when ________ .<br><\/strong>a) imports have inelastic demand<br>b) imports have elastic demand<br>c) exports have elastic supply<br>d) none of the above<\/p>\n\n\n\n<p><strong>33. When supply of exports is elastic, a country will have ________ terms of trade. <br><\/strong>a) favourable<br>b) unfavourable<br>c) different<br>d) none of the above<\/p>\n\n\n\n<p><strong>34. The concept of reciprocal demand was introduced by ________ .<br><\/strong>a) J. S. Mill<br>b) J. M. Keynes<br>c) G. S. Dorrance<br>d) F.W. Taussig<\/p>\n\n\n\n<p><strong>35. Reciprocal demand is expressed in terms of _________ .<br><\/strong>a) Offer curves<br>b) supply curves<br>c) demand curves<br>d) cost curves<\/p>\n\n\n\n<p><strong>36. The classical theory of international trade was presented by __________ .<br><\/strong>a) David Ricardo<br>b) Hecksher-Ohlin<br>c) J. M. Keynes<br>d) Alfred Marshall<\/p>\n\n\n\n<p><strong>37. Hecksher-Ohlin theory states that the relative factor prices in two countries are determined by _____ . <\/strong><br>a) differences in factor endowments<br>b) labour efficiency<br>c) technological developments<br>d) none of the above<\/p>\n\n\n\n<p><strong>38. Hecksher-Ohlin theory is also known as ________ theory of international trade. <br><\/strong>a) modern<br>b) traditional<br>c) classical<br>d) none of the above<\/p>\n\n\n\n<p><strong>39. Under _______ type of cost difference, international trade will not take place.<br><\/strong>a) equal<br>b) absolute<br>c) comparative<br>d) none of the above<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answer:<\/strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"><strong> <\/strong>31)relative prices of two commodities  32)imports have inelastic demand  33)favourable  34)J. S. Mill  35)Offer curves  36)David Ricardo  37)differences in factor endowments  38)modern  39)equal<\/mark><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><a href=\"https:\/\/youtu.be\/NnIUhZM2QkA\" data-type=\"link\" data-id=\"https:\/\/youtu.be\/NnIUhZM2QkA\" target=\"_blank\" rel=\"noopener\">Video<\/a> explanation of the International Trade chapter.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":17325,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,7],"tags":[4785],"class_list":["post-17297","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bcom","category-degree-college","tag-introduction-to-international-trade"],"_links":{"self":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/17297","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/comments?post=17297"}],"version-history":[{"count":5,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/17297\/revisions"}],"predecessor-version":[{"id":41908,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/17297\/revisions\/41908"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media\/17325"}],"wp:attachment":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media?parent=17297"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/categories?post=17297"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/tags?post=17297"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}