Q. Outsourcing refers to the case in which
✅ Correct Answer: (D)
a firm moves part of its business operations out of the domestic country.
International Economics MCQs and Notes
Q. Approximately what percent of US imports occur through transactions conducted by a multinational corporation?
✅ Correct Answer: (D)
40%
Q. Most international trade today is classified as trade in
✅ Correct Answer: (C)
Manufactured products
Q. While technologies have reduced the negative effect that distance has on trade,
✅ Correct Answer: (C)
political factors have historically been more influential in determining the amount of trade than available technologies.
Q. The North American Free Trade Agreement
✅ Correct Answer: (D)
has reduced tariffs and other trade restrictions among Canada, Mexico and the US.
Q. Evidence shows that
✅ Correct Answer: (D)
countries farther apart have less trade between them on average.
Q. In 2003, the US had the largest total amount of imports from and exports to
✅ Correct Answer: (C)
Canada.
Q. Free trade is based on the principle of:
✅ Correct Answer: (B)
Comparative scale
Q. Increased foreign competition tend to
✅ Correct Answer: (C)
Place constraints on the wages of domestic workers
Q. Arguments for free trade are sometimes disregarded by politicians because:
✅ Correct Answer: (B)
Maximizing consumer welfare may not be a chief priority