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 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.

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 a function of the WTO?

  1. Laying down a commonly accepted code of conduct to reduce trade barriers

  2. Acting as a dispute settlement body

  3. Ensuring that all the rules regulations prescribed in the Act are duly followed by the member countries for the settlement of their disputes

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The functions of WTO are:

1: Laying down a commonly accepted code of conduct to reduce trade barriers.
2: Acting as a dispute settlement body.
3: Ensuring that all the rules regulations prescribed in the Act are duly followed by the member countries for the settlement of their disputes.

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

One of the functions of WTO is to promote an environment that is encouraging to its member countries to come forward to WTO in mitigating their grievances.

  1. True

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

A core function of the WTO is to provide a forum for trade negotiations and a mechanism for dispute settlement, which helps members resolve grievances in a structured, rule-based environment.

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

Identify the function(s) of WTO.

  1. WTO acts as a dispute settlement body.

  2. Supervising on a regular basis the operations of the revised Agreements and Ministerial declarations relating to goods, services and Trade Related Intellectual Property Rights (TRIPS).

  3. Laying down a commonly accepted code of conduct.

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The WTO performs all these functions: it manages the dispute settlement system, oversees the implementation of trade agreements, and provides a forum for negotiating trade rules.