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

How did the fed. gov't use tariffs in the 1800s to help the U.S. grow into an industrial power?

  1. to tax U.S. industry as a source of federal income

  2. convince other nations to buy newly available U.S. products

  3. support U.S. businesses that import the newest technologies

  4. to discourage U.S. consumers from buying foreign products
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Protective tariffs were designed to make imported goods more expensive, thereby encouraging consumers to purchase domestically produced items. This helped protect nascent U.S. industries from foreign competition.

Multiple choice

What did NAFTA create

  1. Free Trade with Mexico only

  2. Free Trade with Canada only

  3. eliminated trade barriers between U.S., Mexico, and Canada

  4. eliminated trade barriers between U.S., Mexico, and Spain
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The North American Free Trade Agreement (NAFTA) was designed to eliminate trade barriers and tariffs between the United States, Canada, and Mexico to promote economic integration.

Multiple choice

An area of economic (trade) control in a country by another country:

  1. Sphere of influence

  2. Imperialism

  3. Annexation

  4. Social Darwinism
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A sphere of influence is a region or concept in which a state or organization has a level of cultural, economic, military, or political exclusivity. This was particularly relevant to the partitioning of China in the late 19th century.

Multiple choice

The pursuit of which economic policy cost President Clinton the support of labor leaders? 

  1. blocking immigration from poor countries

  2. decreasing trade barriers among all nations

  3. preventing labor outsourcing to developing nations

  4. using sanctions to punish enemies of the United States
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

President Clinton's support for free trade agreements like NAFTA (North American Free Trade Agreement) was highly controversial among labor unions and labor leaders, who feared it would lead to job losses.

Multiple choice business organisation import and export procedure export trade procedures and formalities of exports and imports import and export

____ means a good that is shipped from its country of origin to another country to be sold or traded.

  1. Import

  2. Domestic trade

  3. Export

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

An export refers to goods or services produced in one country and sold to buyers in another country. Imports are the opposite, involving goods brought into a country.

Multiple choice business organisation import and export procedure export trade procedures and formalities of exports and imports import and export

_____ is an important document used by freight forwarders to prepare a bill of lading and to understand how much cargo is needed.

  1. Packing list

  2. Electronic Export Information

  3. Consular Invoice

  4. Commercial Invoice
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A packing list provides a detailed breakdown of the contents of a shipment, which is essential for freight forwarders to prepare shipping documents like the bill of lading.

Multiple choice business organisation import and export procedure export trade procedures and formalities of exports and imports import and export

By EXIM policy we mean ________.

  1. external and internal policy

  2. export-import policy

  3. extra import policy

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

Indian EXIM policy is the policy designed by the government in order to regulate the import and export trade of the country. Hence, by EXIM policy we mean export-import policy.

Multiple choice business organisation and correspondence classification of busniess activities business as an activity meaning and types of trade trade and aids to trade

Among the aids to trade, ________ removes the hindrance of risk.

  1. transport

  2. warehousing

  3. insurance

  4. banking and finance
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. An entity which provides insurance is known as an insurer, insurance company, insurance carrier or underwriter. Insurance coverage is the amount of risk or liability that is covered for an individual or entity by way of insurance services. Insurance coverage, such as auto insurance, life insurance or more exotic forms, such as -one insurance is issued by an insurer in the event of unforeseen occurrences.