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 commerce nature and scope of foreign trade characteristics, necessity, importance, advantages and disadvantages of foreign trade importance, scope and benefits of international trade trading and economic organisations

Export promotion was a key element of the foreign trade strategy during the _______.

  1. seventh Five Year Plan

  2. eighth Five Year Plan

  3. nineth Five Year Plan

  4. tenth Five Year Plan
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Export promotion became a significant focus of India's foreign trade strategy during the Eighth Five Year Plan (1992-1997).

Multiple choice commerce nature and scope of foreign trade characteristics, necessity, importance, advantages and disadvantages of foreign trade importance, scope and benefits of international trade trading and economic organisations

The important components of foreign trade of a country are _________.

  1. terms of trade, balance of trade and balance of payment

  2. the volume of trade, the composition of trade and the direction of trade

  3. terms of trade and the volume of trade

  4. terms of trade and the direction of trade
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The three fundamental components used to analyze a country's foreign trade are the volume (how much), the composition (what goods), and the direction (to/from whom).

Multiple choice geography trade in agricultural produce (part - a) trade in tamil nadu trade in agricultural produce - i human geography in tamil nadu

When the relationship between countries is good, then the trade will _____.

  1. Fair bad

  2. Flourish well

  3. Remain constant

  4. Will get badly affected
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

When the relationship between countries is good, then the trade will flourish well, as the countries will understand each other better when there are good relations.

Multiple choice geography trade in agricultural produce (part - a) trade in tamil nadu trade in agricultural produce - i human geography in tamil nadu

Why densely populated countries have less international trade?

  1. Because production is less

  2. Because country is not developed

  3. Because domestic consumption is high

  4. Because international demand is weak
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
  • Densely populated countries have less international trade because domestic consumption is high and there is not much surplus left.
Multiple choice geography trade in agricultural produce (part - a) trade in tamil nadu trade in agricultural produce - i human geography in tamil nadu

_____ decides the economic growth of a country.

  1. Trade

  2. Export

  3. Import

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

A basic economic concept which involves the buying and selling of goods and services with compensation paid by a buyer to a seller, or the exchange of goods or services between parties is known as trade. The most common medium of exchange for these transactions is money. Trade decides the economic growth of a country as it increases the income of a country and provide occupation to a large population.

Multiple choice social science trade in agricultural produce (part - a) trade in tamil nadu trade in agricultural produce - i human geography in tamil nadu

What is called trade?

  1. Only buying of commodities

  2. Only selling of commodities

  3. Buying and selling of commodities

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

Trade may be defined as "an exchange of goods and commodities either within the country or between countries." In simple terms, buying and selling of commodities is called trade and it may be local, regional, national and international.

Multiple choice social science trade in agricultural produce (part - a) trade in tamil nadu trade in agricultural produce - i human geography in tamil nadu

What is an internal trade?

  1. Trade carried out in the country

  2. Trade carried out with other country

  3. Trade carried out with many countries

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

Buying and selling of commodities and services within the country is known as internal trade. Whether the products are bought from local market, central market, and departmental store or from a door-to-door salesperson, all these are examples of internal trade. No custom duty or import duty is levied on this type of trade. Internal trade is a field of economy that includes both wholesale and retail trade.

Multiple choice meaning and characteristics of negotiable instruments the negotiable instruments act, 1881 commerce

Classification of Negotiable Instruments
An inland instrument is one which is -.
1. Drawn and made payable in India
2. Drawn in India upon some person resident therein, even though it is made payable in a foreign country
Select the correct answer from the options given below-

  1. 2 only

  2. Either 1 or 2

  3. 1 only

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
A promissory note, bill of exchange or cheque drawn or made in India, and made payable in, or drawn upon any person resident, in  India shall be deemed to be an inland instrument.
Multiple choice meaning and characteristics of negotiable instruments the negotiable instruments act, 1881 commerce

Classification of Negotiable Instruments
Which of the following is a foreign instrument ?

  1. It is drawn in India and made payable only outside India.

  2. It is drawn in India and made payable outside India and drawn on a person resident outside India.

  3. Both (A) and (B)

  4. Neither (A) nor (B)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
The Negotiable Instruments Act, 1881 defines foreign instrument as any such instrument not so drawn, made or made payable in India shall be deemed to be a foreign instrument. 

Multiple choice organisation of commerce and management tertiary and quaternary economic activities trading and economic organisations india and her neighbours india and other countries

The chief imports of Australia is ________________.

  1. Gold, cotton, iron and rice

  2. Cigarettes, motorcars, cotton clothes, machines and petroleum

  3. Coal, iron and wool

  4. Meat, wheat, silver and woollen clothes
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Australia's import profile historically includes manufactured goods like motorcars, machinery, petroleum products, and various consumer goods like cigarettes and clothing.

Multiple choice business organisation introduction to financial markets concept of financial market meaning and definition of financial market concepts and functions of financial markets

The amount of gold, reserve currencies and special drawing rights available for the finance of International trade is known as ______.

  1. international liquidity

  2. special drawing rights

  3. international monetary fund

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

International liquidity refers to the total stock of assets, such as gold, foreign exchange reserves, and special drawing rights, that a country holds to settle its international payment obligations.