Economics · General Awareness

International Trade Economics

2,124 Questions

International trade economics covers the exchange of goods and services across borders, encompassing theories like comparative advantage and policies such as tariffs. Key concepts include the balance of payments, free trade agreements, and globalization measures. These topics are frequently asked in UPSC, State PSC, and other competitive exams to test economic awareness.

Balance of paymentsTrade policy and tariffsFree trade agreementsComparative advantage theory

International Trade Economics Questions

Multiple choice

__________ ranks second in international retail presence.

  1. Germany

  2. China

  3. Spain

  4. Yugoslavia
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Spain is widely recognized in global retail studies (such as the A.T. Kearney Global Retail Development Index) for its high level of international retail presence, often ranking behind only the United States.

Multiple choice

NAFTA:

  1. North African Free Trade Area

  2. North Atlantic Free Trade association

  3. North American Free Trade Agreement

  4. North American Free Trade Association
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

NAFTA stands for North American Free Trade Agreement, which was a trade pact between the United States, Canada, and Mexico.

Multiple choice

CTBT denotes

  1. arms control measure

  2. drugs control measure

  3. financial control measure

  4. trade control and regulation
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

CTBT stands for Comprehensive Nuclear-Test-Ban Treaty, which is a multilateral treaty that bans all nuclear explosions for both civilian and military purposes in all environments.

Multiple choice

The WTO was earlier known as

  1. UNIDO

  2. GATT

  3. UNCTAD

  4. OECD
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The World Trade Organization (WTO) was established in 1995 as the successor to the General Agreement on Tariffs and Trade (GATT).

Multiple choice

Dumping in the context of international trade refers to

  1. exporting goods at prices below the cost of production

  2. exporting goods of inferior quality

  3. exporting goods only to re-import them at cheaper rates

  4. exporting goods without paying appropriate taxes in the receiving country
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Dumping occurs when a country exports a product at a price lower than its cost of production or lower than the price in its domestic market, often to gain market share or eliminate competition.

Multiple choice

Which of the following is not a type of international trade?

  1. Export Trade

  2. Wholesale Trade

  3. Entrepot Trade

  4. Import Trade

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Wholesale trade is not a type of foriegn or international trade, but of home  or internal trade. In wholesale trade the goods are purchased from manufacturer and sold to the retailer, within the geographical boundaries of country, in large quantities. In wholesale trade both the buyer and purchaser are of same country. For instance sale of plastic products by a merchant from Patna to a merchant from Agra in large quantity is a wholesale trade.

Multiple choice

Charter party agreement is required when

  1. The quantity of goods to be exported is large

  2. The quantity of goods to be exported is small

  3. The quantity of goods to be imported is small

  4. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The term Charter Party agreement is used when the quantity of goods to be exported is large and the exporter hires the full ship. The agreement is known as charter party.