Economics · General Awareness

International Trade Economics

2,022 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

All activities involving the hindrances in the process of exchange are included in commerce. Match the hindrances with the activities ||| |---|---| |Hindrances to business |Activities to remove the hindrances| |A. Person|1. Trade| |B. Place|2. Transport| |C. Risk|3. Insurance|

  1. A-1, B-2, C-3

  2. A-2, B-3, C-1

  3. A-3, B-1, C-2

  4. A-2, B-1, C-3

  5. A-1, B-3, C-2
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

This is the correct matching. The hindrance to the persons is removed by trade by making goods available to consumers. The hindrance to place is removed by transport by moving goods from places of production to markets. The hindrance to risk is removed by insurance against losses.

Multiple choice

'Closed Economy' means an economy having

  1. exports only

  2. imports only

  3. no exports or imports

  4. controlled supply of money
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A closed economy is one that does not interact with other economies, meaning it has no imports or exports. It is self-sufficient and isolated from international trade.

Multiple choice

AGMARK is

  1. a seal put by ISI on manufactured goods

  2. a seal put by a government agency on certain imported goods

  3. a seal put by a government agency on certain agricultural products

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

AGMARK is a certification mark employed on agricultural products in India, ensuring that they conform to a set of standards approved by the Directorate of Marketing and Inspection.

Multiple choice

The term 'Third World' refers to

  1. developed countries

  2. under developed and developing countries

  3. oil rich countries

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

The term Third World was originally coined during the Cold War to describe countries that were not aligned with either the NATO bloc or the Soviet bloc, later evolving to refer to developing or underdeveloped nations.

Multiple choice

According to the WTO charter which among the following is not a benefit availed by is members?

  1. The member Governments are shielded from lobbying.

  2. Freer trade cuts the costs of living

  3. Trade Disputes are handled constructively

  4. Access to Foreign currency is made easier

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

The WTO charter focuses on trade rules, dispute settlement, and lowering trade barriers; it does not provide direct access to foreign currency for member governments.

Multiple choice

What is SAFTA?

  1. South African Free Trade Agency

  2. South Asian Free Trade Area

  3. South African Free Trade Association

  4. South American Free Trade Area
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

SAFTA stands for South Asian Free Trade Area, which is an agreement signed by the member states of the South Asian Association for Regional Cooperation (SAARC).

Multiple choice

Full form of the “APEC” is

  1. Asia pacific economic co-operation

  2. American pact economic co- operation

  3. American pentagon effigy core

  4. Aids prevention emergency co-operation
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

APEC stands for Asia-Pacific Economic Cooperation. It is a regional economic forum for 21 economies in the Pacific Rim.

Multiple choice

CTBT is a term associated with

  1. nuclear weapons

  2. central taxes

  3. trade sanctions

  4. international terrorism

  5. internal payments
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

CTBT stands for the Comprehensive Nuclear-Test-Ban Treaty. It is an international agreement that bans all nuclear explosions for both civilian and military purposes.

Multiple choice

SAFTA stands for

  1. South Asia Free Trade Agreement

  2. South African Federation for Tribal Advancement

  3. South Asian Forum for Tourism Agreements

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

SAFTA stands for South Asia Free Trade Agreement, which is a trade agreement between the seven South Asian Association for Regional Cooperation (SAARC) countries.