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 political science facilitators of international business introduction, status, objectives, features, scope and functions of the wto world trade organisation (wto) world trade organisation

In which meeting was the idea of the WTO first coined?

  1. Development of poor nations conference

  2. Bretton woods conference

  3. Distribution of wealth meet

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

The Bretton Woods conference was the meeting which coined the idea of World Trade Organization (WTO) and International Monetary Funds (IMF).

Multiple choice political science facilitators of international business introduction, status, objectives, features, scope and functions of the wto world trade organisation (wto) world trade organisation

Though the WTO has various benefits to its member countries, it has often been criticised for trade rules which are still unfavourable towards developing countries.

  1. True

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

The WTO is frequently criticized by developing nations for trade rules that may favor developed economies, such as agricultural subsidies or intellectual property rights.

Multiple choice political science facilitators of international business introduction, status, objectives, features, scope and functions of the wto world trade organisation (wto) world trade organisation

Bretton Woods conference agreed upon having some arrangement among themselves so as to liberalise the world. The arrangement is known as __________.

  1. Tariff

  2. Customs

  3. International Trade Organization

  4. General Agreement for Tariffs and Trade
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The General Agreement on Tariffs and Trade (GATT) was the precursor to the WTO, established after the Bretton Woods conference to reduce trade barriers.

Multiple choice political science facilitators of international business introduction, status, objectives, features, scope and functions of the wto world trade organisation (wto) world trade organisation

______ helps fostering growth of developing countries by providing them with special and preferential treatment in trade related matters.

  1. World Bank

  2. WTO

  3. IMF

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

The WTO provides special and differential treatment provisions to developing countries, allowing them more flexibility and longer timeframes to implement trade agreements.

Multiple choice political science facilitators of international business introduction, status, objectives, features, scope and functions of the wto world trade organisation (wto) world trade organisation

Any state or customs territory having full autonomy in the conduct of its trade policies may join the WTO.

  1. True

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

The WTO membership is open to any state or customs territory that possesses full autonomy in the conduct of its external trade policies. This ensures that only entities capable of fulfilling WTO obligations can join.

Multiple choice political science facilitators of international business introduction, status, objectives, features, scope and functions of the wto world trade organisation (wto) world trade organisation

The World Trade Organisation is the successor to the ____________.

  1. UNCTAD

  2. ADB

  3. IMF

  4. GATT
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The World Trade Organization was established on January 1, 1995, replacing the General Agreement on Tariffs and Trade (GATT), which had been in place since 1948.

Multiple choice political science facilitators of international business introduction, status, objectives, features, scope and functions of the wto world trade organisation (wto) world trade organisation

The WTO has ___________.

  1. no legal status

  2. a legal status

  3. a special status

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

The WTO has full legal personality under international law, meaning it can contract, acquire property, and enjoy legal privileges and immunities necessary for its functions. This legal status, granted in the Marrakesh Agreement, enables the WTO to operate effectively as an international organization.

Multiple choice political science facilitators of international business introduction, status, objectives, features, scope and functions of the wto world trade organisation (wto) world trade organisation

Most of the counter trade agreements involve essential items of food like ____________.

  1. Rice

  2. Barley

  3. Wheat

  4. (A) and (C)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Counter trade agreements often involve essential commodities to ensure food security. Both rice and wheat are staple grains commonly traded under such arrangements.

Multiple choice political science facilitators of international business introduction, status, objectives, features, scope and functions of the wto world trade organisation (wto) world trade organisation

Which one is not the source of external finance?

  1. WTO Funds

  2. World Bank Group

  3. Export Credit

  4. Foreign Direct Investment
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The sources for external finances that are available are export credit, world bank group, foreign direct investment. The WTO funds are not a source of external finances.

Multiple choice political science facilitators of international business introduction, status, objectives, features, scope and functions of the wto world trade organisation (wto) world trade organisation

TRIP is one of the WTO agreements that deal with _________.

  1. Trade in Agriculture

  2. Trade in Services

  3. Trade Related Investment Measures

  4. None of the Above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

TRIP is one of the WTO agreements that deals with areas of intellectual property like copyright and related rights, trademarks including service marks, patents etc. 

Multiple choice political science facilitators of international business introduction, status, objectives, features, scope and functions of the wto world trade organisation (wto) world trade organisation

Which among the following are important bodies of WTO?
i) Dispute Settlement Body
ii) NAFTA
iii) Trade Policy Review Body
iv) ASEAN
v) Council for Trade in Goods
vi) IBRD
vii) Council for Trade related aspects of Intellectual Property Rights.
viii) GATT
Which of the following are an appropriate combination?

  1. i, ii, iii, iv

  2. ii, iii, iv, v

  3. i, iii, v, vi

  4. iv, v, vi, viii
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The important bodies of the World Trade Organization (WTO) are Dispute settlement bodies, trade policy review body, council for trade in goods, council for trade related aspects of intellectual property rights.

Multiple choice political science facilitators of international business introduction, status, objectives, features, scope and functions of the wto world trade organisation (wto) world trade organisation

WTO is considered as a ______________.

  1. Poor men's club

  2. Rich men's club

  3. Trade union

  4. Chamber of commerce
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The WTO is often criticized by developing nations as a 'rich men's club' because the rules and negotiations are frequently perceived to favor the interests of developed, industrialized nations.

Multiple choice political science facilitators of international business introduction, status, objectives, features, scope and functions of the wto world trade organisation (wto) world trade organisation

Which organisation sets the rule of trade on a global scale?

  1. World Trade Organisation

  2. World Organisation of Trade

  3. Both (A) and (B)

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

World Trade Organisation

The World Trade Organization is the only international institution that oversees the global trade rules between nations. The WTO is based on agreements signed by the majority of the world's trading nations. The main function of the organization is to help producers of goods and services, exporters, and importers protect and manage their businesses.

Multiple choice political science facilitators of international business introduction, status, objectives, features, scope and functions of the wto world trade organisation (wto) world trade organisation

Which of the following is not a major objective of the WTO?

  1. Increase international trade barriers

  2. Reduce international trade barriers

  3. Promote optimal use of world resources

  4. Create a more integrated trading system
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The major objectives of WTO is to reduce the trade barriers, promote optimal use of world resources, create a more integrated trading system.