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

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.

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.