IB Quiz MIB, Delhi School of Economics

1) In which year IMF came into existence as a result when 29 countries signed the Articles of Agreement? 1944 1945 1946 1947 2) Which is the country that joined WTO as a newest member on 24th August 2012? Montenegro Samoa Vanuatu Russian Federation 3) The _______ was founded in 1994 to police the world trading system. United Nations Trade Administration Global trade monitoring commission International trade enforcement agency World trade organization 4) Which country is not member of Organization of Petroleum Exporting Countries (OPEC)? Iran Iraq Egypt Venezuela 5) When one producer has a lower opportunity cost of production than another producer for a given item, what exists? Absolute disadvantage Absolute advantage Comparative disadvantage Comparative advantage 6) When one producer can create a given amount of output with fewer inputs, what exists? Absolute disadvantage Absolute advantage Comparative disadvantage Comparative advantage

7) How many countries are currently members of GSTP? 42 43 44 45 8) What is it called when the government places limits on the number of a given good that can be imported? Subsidies Taxes Quotas Tariffs 9) Which of the following theories was proposed by David Ricardo? Theory of differences in climate and resources Theory of differences in labor productivity Theory of differences in factor endowments Theory of random components determining the pattern of trade 10) Many countries were fixing the price of their currency in terms of gold: Before World War I During World War I During World War II After World War II 11) Most-favoured nation treatment A. is now known as "normal trade relations." B. Reflects the notion of non-discrimination C. Is a relatively rare occurrence in the world today. D. All of the above are correct E. a and b only 12) Dumping occurs: when a country sells a product at a higher price in a foreign market than it does in its domestic market. when a country sells defective units of its products in a foreign market, while keeping the properly-made units for its home market. when a country sells a product at a lower price in a foreign market than it does in its domestic market. when a country fails to follow the specificity principle. 13) As a result of the WTOs Uruguay Round of trade negotiations: tariffs were reduced on average by less than 1%. major breakthroughs occurred with respect to trade in services. some progress was made in the area of trade in agricultural products. many remaining tariffs were converted into equivalent VERs.

14) The removal of internal barriers to factor movement within Europe was set forth in the Free Trade in Factors Act European Factor Mobility Act Single European Act MERCOSUR Protocols 15) Which activity/ sector does not have 100% FDI in India? Real Estate Business or Construction of Farm Houses Hotel & Tourism Drug & Pharmaceuticals Telecommunication 16) Which among the following is correct combination of Licensing/Franchising? Subway/McDonalds Disney Consumer Products/Subway Provogue/McDonalds Twisted Doughnuts/Barista Coffee 17) Which country did China overtook in 2010 and became largest exporter of goods? US Japan France Germany 18) _________ is defined as a host country orientation; a companys management team believes that local preferences and techniques are most appropriate to deal with the local market conditions. Geocentric Approach Polycentric Approach Ethnocentric Approach Geo-Ethno Approach 19) An arrangement under which a country fixes the value of its currency in terms of some "hard" currency such as the U.S. dollar is known as: a crawling peg a currency board a fixed peg a crawling band 20) A country with a current account surplus is saving less than it invests. becoming steadily wealthier at the expense of the rest of the world. saving more than it invests. necessarily running a government budget deficit.