Chapter 3. International Trade

International trade is the exchange of:

a. Capital

b. Goods and services

c. Labor

d. Science and technology

b

Entities participating in international trade are:

a. Within the same country

b. Within the same locality

c. From different countries

d. Of the same nationality

c

International trade takes place on:

a. Regional markets

b. The world market

c. The exporter’s market

d. Regional, world, and exporter’s markets

d

The medium of international payments is:

a. Strong currencies of exporter and importer countries

b. Strong currencies

c. Strong currency of the exporter

d. Strong currency of the importer

a

The main actors in international trade are:

a. Enterprises and governments

b. Non-governmental organizations

c. Social organizations

d. Political organizations

a

When a country participates in international trade:

a. Trade benefits always increase

b. Trade benefits always decrease

c. Trade benefits remain unchanged

d. Trade benefits may increase or decrease

d

In recent decades, international trade has developed with:

a. High speed, small scale

b. Low speed, large scale

c. Unchanged speed and scale

d. High speed, large scale

d

According to WTO, how many modes of international service supply are there?

a. 3

b. 4

c. 5

d. 6

b

The currency chosen to express international prices is:

a. Strong convertible currency

b. Any convertible (có thể chuyển đổi) currency

c. Currency of the largest exporter

d. Currency of the largest importer

a

According to trade terms, types of prices include:

a. FOB, CIF

b. Listed exchange prices

c. Auction and tender prices

d. Reference prices

a

Factors influencing international prices:

a. Monopoly

b. Competition

c. Value of the currency in which the price is expressed

d. Monopoly, competition, and currency value

d

If the price of an item on the world market rises in the long run, the exporter will:

a. Benefit

b. Suffer losses

c. Both benefit and suffer losses

d. Not be affected

c

If the price of an item on the world market falls in the long run, the exporter will:

a. Benefit

b. Suffer losses

c. Both benefit and suffer losses

d. Not be affected

c

If the price of an item on the world market rises in the short run, the importer will:

a. Benefit

b. Suffer losses

c. Both benefit and suffer losses

d. Not be affected

b

If the price of an item on the world market falls in the short run, the importer will:

a. Benefit

b. Suffer losses

c. Both benefit and suffer losses

d. Not be affected

a

Factors affecting exchange rates:

a. National economic growth rate

b. Growth rate, psychology, balance of payments

c. Psychology

d. Balance of payments

b

If seller competition is stronger than buyer competition, world prices tend to:

a. Rise

b. Fall

c. Stay unchanged

d. May rise or fall

b

If buyer competition is stronger than seller competition, world prices tend to:

a. Rise

b. Fall

c. Stay unchanged

d. May rise or fall

a

When a country’s balance of payments is in surplus, the exchange rate tends to:

a. Stable

b. Rise

c. Fall

d. May rise or fall

c

When a country’s balance of payments is in deficit, the exchange rate tends to:

a. Stable

b. Rise

c. Fall

d. May rise or fall

b

When domestic inflation is higher than foreign inflation, the exchange rate tends to:

a. Stable

b. Rise

c. Fall

d. May rise or fall

b

When domestic inflation is lower than foreign inflation, the exchange rate tends to:

a. Stable

b. Rise

c. Fall

d. May rise or fall

c

When people tend to hoard (tích trữ) foreign currency, the exchange rate tends to:

a. Stable

b. Rise

c. Fall

d. May rise or fall

b

MFN (Most Favored Nation) status requires members in economic-trade relations to give each other preferential conditions:

a. Less than those granted to others

b. More than those granted to others

c. No less than those granted to others

d. Equal to those granted to others

c

MFN status is:

a. No commitment, no automatic extension

b. Commitment, automatic extension

c. No commitment, automatic extension

d. Commitment, no automatic extension

b

Preferences under MFN status include:

a. Tariffs

b. Fees

c. Administrative procedures

d. Duties

a

National Treatment (NT) status aims at non-discrimination between:

a. Foreign goods with each other

b. Foreign goods/enterprises and domestic ones

c. Domestic goods/enterprises with each other

d. Domestic goods with each other

b

Preferences under NT status include:

a. Taxes

b. Domestic fees and charges

c. Administrative procedures

d. Taxes, domestic fees/charges, administrative procedures

d

The purpose of NT status is:

a. Giving increasing preferences to each other

b. Giving decreasing preferences to each other

c. Discrimination

d. Non-discrimination

d

A basic principle in international trade is:

a. Reciprocity

b. Non-discrimination

c. Predictability

d. Transparency

b

Granting each other preferential conditions not less favorable than those granted to others is:

a. Reciprocity principle

b. MFN status

c. NT status

d. Transparency principle

b

The purpose of NT status is:

a. To restrict international economic development

b. To discriminate

c. To discriminate and restrict international trade

d. To ensure non-discrimination

d

A protectionist trade policy means the state:

a. May import inputs cheaply

b. May import goods cheaply

c. Protects goods not competitive enough

d. Increases product variety

c

A free trade policy means the state:

a. Closes the domestic market

b. Increases tariff barriers

c. Increases non-tariff barriers

d. Applies non-discrimination

d

A country usually applies free trade policy when:

a. The world market fluctuates

b. The world market is stable

c. The world market is stable and economic relations are friendly

d. Economic relations with other countries are friendly

c

Protectionism makes the domestic market:

a. Monotonous (Đơn điệu), consumers benefit

b. Diverse, consumers benefit

c. Monotonous, consumers don’t benefit

d. Diverse, consumers don’t benefit

c

Non-discrimination is the purpose of:

a. MFN

b. NT

c. Both NT and MFN

d. Reciprocity

c

A country should apply protectionist policy when:

a. The world market fluctuates

b. The economy is strong enough

c. The world market is stable

d. Economic relations with others are friendly

a

Which is a financial barrier?

a. Export ban

b. Domestic tax

c. Quota

d. Export license

b

Which is an export support measure?

a. Currency devaluation

b. Tariffs

c. Quotas

d. Deposits

a

Which is an export support measure?

a. Technical standards in trade

b. Export credit

c. Domestic tax

d. Import/export license

b

Which belongs to non-financial barriers (hàng rào phi thuế quan))?

a. Export tariff

b. Domestic tax

c. Import deposit

d. Technical standards in trade

d

Which is a financial non-tariff barrier?

a. Export tariff

b. Domestic tax

c. Import tariff

d. Technical standards in trade

b

Applying tariffs to regulate trade will make the quantity:

a. Increase

b. Decrease

c. May increase or decrease

d. No change

c

Applying quotas to regulate trade will make the quantity:

a. Increase

b. Decrease

c. May increase or decrease

d. No change

c

Measures can aim to:

a. Develop trade

b. Protect consumers

c. Protect domestic producers

d. Prevent trade fraud

c

Import deposit ratio depends on:

a. State’s protection level

b. Value of goods

c. Relations with exporter

d. Volume of goods

a

A main content of trade agreements is:

a. Raising trade barriers

b. Protecting domestic markets

c. Resolving disputes

d. Restricting imports

c

Parties signing trade agreements (thỏa thuận) are:

a. Governments and enterprises

b. Enterprises

c. Governments

d. Individuals

c

Tariffs (Thuế quan) protect domestic production by:

a. Lowering domestic prices

b. Raising import prices

c. Raising domestic prices

d. Lowering import prices

c

Import deposits require importers to deposit foreign currency at commercial banks:

a. Before import

b. After import

c. During import

d. Anytime

a

To regulate imports via deposits, the state uses:

a. Import tariffs

b. Import prices

c. Exchange rates

d. Deposit ratio

d

Setting a maximum limit on volume/value of imports/exports during a period is:

a. Tariff

b. Import deposit

c. Monetary policy

d. Quota

d

Countries with the strictest standards are:

a. Developed countries

b. Developing countries

c. Underdeveloped countries

d. Newly industrialized

a

Which is not a financial barrier?

a. Quota

b. Tariff

c. Domestic tax

d. Import deposit

a

Which measure is for developing international trade?

a. Trade agreements

b. Financial measures

c. Technical measures

d. Administrative/legal measures

a

In 2004, the US banned imports of processed chicken from Thailand. This is:

a. Import restriction

b. Technical barrier

c. Import ban

d. Tariff

c

In May 2019, 9 seafood shipments from Vietnam were rejected by the EU for food safety. This is:

a. Import restriction

b. Tariff

c. Import ban

d. Technical barrier

d

Which non-financial barrier is most protectionist?

a. Quantity restriction

b. Technical standards

c. Import ban

d. Quotas

c

Which measure depends most on development level?

a. Licenses & quotas

b. Trade agreements

c. Tariffs

d. Technical measures

d

Trend of quotas vs technical barriers:

a. Quotas up, technical barriers down

b. Quotas down, technical barriers up

c. Quotas eliminated, technical barriers up

d. Both down

b

Developing countries only use protectionism.

A. True

B. False

b

Developed countries only use free trade.

A. True

B. False

b

MFN leads to the “automatic extension” phenomenon.

A. True

B. False

a

If country A grants B tariff preferences and also extends them to C, it reflects MFN.

A. True

B. False

a

Market opening can be applied equally to all goods

A. True

B. False

b

Limited protectionism makes currency use more efficient

A. True

B. False

a

Technical barriers are decreasing in the future.

A. True

B. False

b

Higher deposits are set for goods restricted from import.

A. True

B. False

a

Domestic taxes don’t regulate international trade.

A. True

B. False

b

Tariffs are tools of discrimination and negotiation (thương lượng) pressure

A. True

B. False

a

“Green box” subsidies are direct, trade-distorting subsidies.

A. True

B. False

b

Export subsidies (trợ cấp) are private supports for exporters

A. True

B. False

b

Signing trade agreements is a way to restrict trade.

A. True

B. False

b

Export credit is a trade barrier.

A. True

B. False

b

When world prices fall, exporters may still profit.

A. True

B. False

a

Importers should choose CIF.

A. True

B. False

b

Importers should choose FOB.

A. True

B. False

a

Exporters should choose CIF.

A. True

B. False

a

Exporters should choose FOB

A. True

B. False

b

Exchange rate decreases only benefit trade

A. True

B. False

b

Exchange rate decreases only harm trade.

A. True

B. False

b

Exchange rate increases only benefit trade

A. True

B. False

b

Exchange rate impacts are the same short- and long-term

A. True

B. False

b

Payment deficit → exchange rate tends to stabilize and fall

A. True

B. False

b

Payment surplus → exchange rate tends to stabilize and fall.

A. True

B. False

b

Exchange rate increases only benefit trade

A. True

B. False

b

Payment deficit → exchange rate tends to rise

A. True

B. False

a

Exchange rate impacts differ short- vs long-term

A. True

B. False

a

A Vietnamese firm importing machinery from Shanghai may use VND in payment.

A. True

B. False

a

MFN requires conditions ………… those given to others

no less favorable

NT requires foreign products/providers to be treated ………… domestic ones

no less favorable

Purpose of MFN: equal ………… for members in entering a market

A. competition/opportunity

B. domestic market/national interest

C. facilitate/promote

D. competition/promote

a

Protectionism aims to protect …………

A. competition/opportunity

B. domestic market/national interest

C. facilitate/promote

D. competition/promote

b

Protectionism follows the principle of …………

discrimination

………… is a diplomatic (ngoại giao) document signed by states on trade conditions

Trade agreement

………… support is state measures to promote exports

Export

Export support means the state uses measures to ………… exports

A. competition/opportunity

B. domestic market/national interest

C. facilitate/promote

D. competition/promote

C

The SCM Agreement divides subsidies into ………… type

3

Tariff is a tax on goods crossing a country’s …………

border