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

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.

Multiple choice commerce 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 the objective of the WTO?

  1. To improve the standard of living of peoples of the member countries.

  2. To enlarge production and trade of goods.

  3. To protect environment.

  4. To improve the Balance of Payment situation of the member countries.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The WTO's primary objectives relate to trade liberalization, raising standards of living, and ensuring full employment. While it considers sustainable development, improving the Balance of Payment (BoP) of member countries is primarily the mandate of the IMF, not the WTO.

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

Consequent to the decision in ______ round, the GATT was transformed into World Trade Organisation (WTO).

  1. Uruguay

  2. Torquay

  3. Annecy

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

The Uruguay Round of multilateral trade negotiations (1986-1994) led to the Marrakesh Agreement, which formally replaced the GATT with the World Trade Organization.

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 benefit(s) of World Trade Organisation.

  1. Disputes between member nations are settled with mutual consultations.

  2. Helps promote international peace and facilitates international business.

  3. Free trade improves the living standard of the people by increasing the income level.

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

The WTO facilitates international trade by providing a stable, predictable environment, settling disputes, and promoting liberalization, all of which contribute to economic growth and improved standards of living.

Multiple choice commerce 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 statements is not true about the WTO?

  1. WTO is a permanent organisation.

  2. Uruguay round gave the birth to the WTO.

  3. Ministerial Conference is the highest policy making body of the WTO.

  4. WTO was officially constituted on 1 January 1991.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The WTO was established by the Marrakesh Agreement and officially came into existence on January 1, 1995, not 1991.

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

Under the WTO agreements, countries cannot normally discriminate between their trading partners. This clause is popularly known as ____________.

  1. Host treatment

  2. Predictability

  3. Most-Favoured-Nation (MFN)

  4. Doha Development Agenda
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Most-Favored-Nation (MFN) principle requires WTO members to treat all other members equally, ensuring that any trade advantage granted to one country is extended to all other WTO members.

Multiple choice computer and ms office mathematical methods for economics economics

Under Free Trade regime there is ____________.

  1. increase in domestic prices

  2. fall in economic welfare

  3. equalization of factor prices

  4. loss of domestic industries
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Under the Heckscher-Ohlin model and free trade, the Factor Price Equalization theorem states that trade will lead to the equalization of factor prices across countries.

Multiple choice economics comparative studies of indian and chinese economies comparing indian and chinese economies comparative development experiences of india and its neighbours economics of development

China has been termed as the '_______________'.

  1. workshop of the world

  2. major importer in world trade

  3. both a and b

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

Due to its massive manufacturing sector and export-oriented economy, China is widely referred to as the 'workshop of the world'.

Multiple choice economics comparative studies of indian and chinese economies comparing indian and chinese economies comparative development experiences of india and its neighbours economics of development

Growth in China's foreign trade accelerated after it joined WTO in 2001.

  1. True

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

China's accession to the World Trade Organization (WTO) in 2001 significantly reduced trade barriers and integrated the country into the global market, leading to a surge in export and import volumes.

Multiple choice east asia in the middle ages china: two different phases the middle ages national liberation movements in the colonies history

Though often not officially interested in foreign trade, what example below indicates the involvement of the Chinese government in internal trade?

  1. The Great Wall of China

  2. The opening of the civil service exam to all backgrounds

  3. The construction of the Grand Canal

  4. The use of tax money for flood control
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
The construction of the Grand Canal