Economics ยท 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

Very often we read about the Doha Ministerial Conference 2001 in reference to WTO negotiations. What were the major issues over which nations were of different opinions?

  1. Providing subsidy to agriculture.
  2. Export of patented drugs/medicines by developed nations.
  3. Restriction on natural movement of people from one nation to other.

  1. Only 1

  2. Only 2

  3. Only 3

  4. Both 1 and 3

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

The Doha Ministerial Conference was heavily contested over agricultural subsidies, as developing nations sought to protect their farmers from the high subsidies provided by developed nations.

Multiple choice

Devaluation of Rupee

  1. Increases countries Imports

  2. Increases countries Exports

  3. It does not affect exports and Imports

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Devaluation makes a country's exports cheaper for foreign buyers and imports more expensive for domestic buyers, thus typically increasing exports.

Multiple choice

Which of the following trade figures declined in 2009-10 as against 2008-09 according to the provisional data released by Ministry of Commerce and Industry in May 2010?

  1. Exports

  2. Imports

  3. Oil imports

  4. Non-oil imports

  5. All the above
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

India's exports in the financial year 2009-10 (April-2009 to March-2010) were US \$ 176574 million (Rs 835264 crore) as against US \$ 185295 million (Rs. 840754 crore) in 2008-09, registering a negative growth of 4.7 per cent in Dollar terms and 0.7 per cent in Rupee terms over the same period last year, according to the provisional data released by Ministry of Commerce & Industry on May 10, 2010. India's imports in the financial year 2009-10 were US \$ 278681 million (Rs. 1318188 crore) as against US \$ 303696 million (Rs. 1374434 crore) in 2008-09, registering a negative growth of 8.2 percent in Dollar terms and 4.1 percent in Rupee terms over the same period last year. Oil imports during the financial year 2009-10 were valued at US\$ 85473 million which was 8.7 per cent lower than the oil imports of US \$ 93667 million in the corresponding period in 2008-09. Non-oil imports during 2009-10 were valued at US\$ 193208 million which was 8.0 per cent lower than the level of such imports valued at US\$ 210029 million in April 2008- March, 2009. The trade deficit for 2009-2010 was estimated at US \$ 102106 million which was lower than the deficit of US \$ 118401 million during 2008-2009.

Multiple choice

The terms TRIPS and TRIMS are related to

  1. NAFTA

  2. SAPTA

  3. EFTA

  4. GATT
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

TRIPS (Trade-Related Aspects of Intellectual Property Rights) and TRIMS (Trade-Related Investment Measures) are agreements under the World Trade Organization (WTO), which succeeded the GATT.

Multiple choice

GATT has been replaced by

  1. WTO

  2. WOTT

  3. ILO
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The General Agreement on Tariffs and Trade (GATT) was replaced by the World Trade Organization (WTO) in 1995.

Multiple choice

CST No. is used for

  1. Interstate s<st1:city w:st="on"><st1:place w:st="on">ale</st1:place></st1:city>

  2. Local s<st1:city w:st="on"><st1:place w:st="on">ale</st1:place></st1:city>

  3. Export s<st1:city w:st="on"><st1:place w:st="on">ale</st1:place></st1:city>

  4. Both Local and Export sales
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Right answer because interstate sale means sale within two states and we use CST No. for the interstate sale.

Multiple choice

A trade policy consist of

  1. Export Import Policy

  2. Licensing Policy

  3. Foreign Exchange Policy

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

A trade policy, often referred to as an Export-Import (EXIM) policy, outlines the rules and regulations governing the import and export of goods and services.