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 world bank institutes supporting business facilitators of international business organisation of commerce and management commerce nabard and kvic funding and assistance to small businesses

The acronym for general agreement for tariffs and trade is _________.

  1. WTO

  2. IMF

  3. GATT

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

The acronym for General Agreement for Tariffs and Trade is GATT. The main aim of GATT is to promote international trade by eliminating trade barriers.

Multiple choice world bank institutes supporting business facilitators of international business organisation of commerce and management commerce nabard and kvic funding and assistance to small businesses

The main objective of ITO  was to promote and facilitate international trade among member nations.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The main objective of ITO  was to promote and facilitate international trade among member nations, ITO was an international trade institution which is now also know as the WTO World Trade Oregannization.

Multiple choice the wto and india world trade organisation international business commerce business studies

The major outcome of the Bretton Woods Conference was the estabilishment of ______________.

  1. IMF and IFC

  2. IBRD and IFC

  3. IBRD and ADB

  4. IMF and IBRD
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The major outcome of the Bretton woods conference was the establishment of the International Monetary Funds (IMF) and International Bank for Reconstruction and Development (IBRD)

Multiple choice national income identity for open economy open economy macroeconomics determination of income and employment economics

Imports of goods and services raises the _______ of foreign exchange.

  1. supply

  2. demand

  3. both (a) and (b)

  4. neither (a) nor (b)
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Imports of goods and services raises the demand of foreign exchange. It s a component of the demand of foreign exchange because payments for imports are made in foreign exchange only.

Multiple choice national income identity for open economy open economy macroeconomics determination of income and employment economics

An economy which has trade relation with rest of the world is called an _______.

  1. open economy

  2. closed economy

  3. mixed economy

  4. under developed
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

An open economy is one that operates a domestic sector and an international (foreign) sector and is interdependent. It is open to international trade. The economy will usually consist of 4 sectors, firms households, government and foreign sector when the economy is open.

Multiple choice national income identity for open economy open economy macroeconomics determination of income and employment economics

Net exports are negative when __________.

  1. net investment is positive

  2. exports are exceeded by imports

  3. exports exceed private transfer to foreigners

  4. imports are exceeded by exports
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Net exports are calculated as exports minus imports. If imports exceed exports, the value of net exports becomes negative.

Multiple choice commerce types of trade features of internal trade internal trade business and industry

Buying and selling of goods and services within the boundaries of a nation are referred to as __________.

  1. external trade

  2. internal trade

  3. sale transaction

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

Internal trade, also known as domestic trade, refers to the buying and selling of goods and services within the geographical boundaries of a single country.

Multiple choice commerce types of trade features of internal trade internal trade business and industry

Internal trade can be classified into two broad categories. The two categories of internal trade are _________ and _________.

  1. wholesale, retail trade

  2. inward , outward trade

  3. intra state, inter state trade

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

Internal trade is primarily categorized into wholesale trade (bulk sales to intermediaries) and retail trade (sales to final consumers).

Multiple choice commerce types of trade features of internal trade internal trade business and industry

Which is termed as trade bill?

  1. An inland instrument drawn outside India.

  2. An instrument drawn outside India.

  3. An outside trade bill drawn in India.

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

Trade bills are typically drawn by the seller of goods and are accepted by the buyer. Accommodation bills do not involve the sale or purchase of any goods and/ or services; rather they are agreements between two parties with the purpose of financial support.

a bill of exchange (= a document ordering someone to pay a particular amount at a particular time) that is used to pay for goods: If the trade bill is accepted, in effect the buyer is getting credit from the seller.

Multiple choice commerce types of trade features of internal trade internal trade business and industry

Which of the following is true in relation to internal trade?

  1. No custom duty or import duty is levied on such trade as goods are part of domestic production and are meant for domestic consumption

  2. Generally, payment has to be made in the legal tender of the country or any other acceptable currency

  3. Internal trade can be classified into two broad categories

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
  • Buying and selling of goods and services within the boundaries of a nation are referred to as internal trade.
  • No custom duty or import duty is levied on such trade as goods are part of domestic production and are meant for domestic consumption.
  • Generally, payment has to be made in the legal tender of the country or any other acceptable currency.
  • Internal trade can be classified into two broad categories viz., (i) wholesale trade and (ii) retail trade.
Multiple choice commerce types of trade features of internal trade internal trade business and industry

NAFTA is____________________.

  1. treaty signed between two companies of Europe

  2. free trade between America and Europe

  3. free trade agreement between US, CANADA and MEXICO.

  4. free treaty between any two countries
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The North American Free Trade Agreement, which eliminated most tariffs on trade between Mexico, Canada and the United States, went into effect on Jan. 1,1994.NAFTA's purpose is to encourage economic activity between North America's three major economic powers.

Multiple choice commerce types of trade features of internal trade internal trade business and industry

WTO helped in_________.

  1. privatization

  2. cross burden trade

  3. helped in providing political stability for companies who are doing international business

  4. all of the above.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The World Trade Organization is an intergovernmental organization that regulates international trade. The WTO officially commenced on 1 January 1995 under the Marrakesh Agreement, signed by 124 nations on 15 April 1994, replacing the General Agreement on Tariffs and Trade, which commenced in 194

Multiple choice business organisation and correspondence commerce and modern civilization history of commerce in india hindrances of commerce historical background of commerce in the sub-continent

The hindrance of ____ is removed by trade thereby making goods available to the consumers from the producers.

  1. place

  2. persons

  3. time

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

Trade involves the buying and selling of goods, which connects producers to consumers, thereby removing the hindrance of persons (the gap between who produces and who consumes).

Multiple choice function, distinction and objectives of chambers of commerce role of chambers of commerce & industry and trade associations internal trade commerce business studies

Identify the interests and aims of Chambers of Commerce and Industry.

  1. Transportation or inter-state movement of goods.

  2. Octroi or other local levies.

  3. Harmonisation of VAT structure.

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Interests and aims of chambers of commerce and industry:
(i) Transportation or inter state movement of goods: The Chambers of Commerce and Industry help in many activities concerning inter state movement of goods which includes registration of vehicles, surface transport policies, construction of highways and roads.
(ii) Octroi and other local levies: Octroi and local taxes are the important sources of revenue of the local government. These are collected on the goods and from people entering the state or the municipal limits.
(iii) Harmonisation of sales tax structure and Value Added Tax: The Chambers of Commerce and Industry play an important role in interacting with the government to harmonise the sales tax structure in different states.