Free Trade and Protectionism Quiz by Shubhrata Shrestha | Jun 24, 2025 | 0 comments Free Trade and Protectionism Quiz 1. What is a likely outcome of free trade? A. Declining productivity B. Higher consumer prices C. Efficient resource allocation D. Reduced international competition None 2. Which of the following is not a method of protectionism? A. Import quotas B. Domestic subsidies C. Preferential procurement D. Comparative advantage None 3. Which policy supports domestic firms by reducing their production costs? A. Import quotas B. Export subsidies C. Domestic subsidies D. Trade embargo None 4. Globalization slows down due to: A. High government subsidies B. Global financial crises C. Technological advancement D. Containerization None 5. One major disadvantage of multinational corporations is: A. Profit repatriation from host countries B. Technological spillover C. Skill training of local labor D. Market access for exporters None 6. Which of the following promotes specialization and increased world production? A. Protectionism B. Embargo C. Free trade D. Import licensing None 7. What is an example of a technical barrier to trade? A. Exchange controls B. Product labeling regulations C. Tariff increases D. Export subsidies None 8. A voluntary export restraint (VER) involves: A. Forcing countries to import goods B. A complete ban on trade C. An agreement to limit export volumes D. Eliminating tariffs None 9. What is one consequence of protectionist policies? A. Increased global trade B. Market distortion C. Higher efficiency D. Cheaper imports None 10. The infant industry argument supports protectionism because: A. It ensures low prices B. It protects developing industries until they can compete C. It prevents MNC investment D. It boosts foreign competition None Time's up Submit a Comment Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ
