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 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

Which of the following documents are not required for obtaining an export license?

  1. IEC number

  2. Letter of credit

  3. Registration cum membership certificate

  4. Bank account number
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Letter of credit is an instrument issued by bank after request made by a foreign buyer that payment will be made to the exporter i.e. the beneficiary. It is useful where buyers and sellers do not know each other personally and are separated by distance. Hence, it is not required for obtaining an export license.

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.

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

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.