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 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

China has been the ____________ recipient of FDI in the world during 1993-2001.

  1. second largest

  2. largest

  3. fourth largest

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

During the 1993-2001 period, China was the second-largest recipient of Foreign Direct Investment (FDI) globally.

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

Incidence of poverty fell to _____ in 2013 from 31% in 1990 in China.

  1. 12%

  2. 8%

  3. 25%

  4. 18%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Poverty refers mainly to the rural poor, as decades of financial expansion have mainly eradicated urban poverty. The remarkable progress in falling poverty over the past three decades in China is well known. 

According to the Bank, more than 850 million Chinese people have been raised out of great poverty China's poverty rate clear-cut from 88 per cent in 1981 to 0.7 per cent. 

In 2015, as calculated by the fraction of people living on the correspondent of US$1.90 or less per day in 2011 purchasing price parity terms. 

China scarcity rate for 2013 was 36.30%, a 8% decline from 2012. 

The correct answer is B.

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

Higher HDI ranking of China as compared to India can be majorly accredited to _____________.

  1. higher GDP per capita

  2. higher literacy rates

  3. lower population

  4. higher life expectancy
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Gross domestic product is a strong indicator of a country economic performance and strength. It is measured by the added value of all final goods and service produced in a country economic performance and strength. 

Also, it is measured by the added value of all final goods and services produced in a country during a specific time period. Gross domestic product per capita is from time to time used to explain the standard of living of a population with an advanced GDP importance a higher standard of living.

The correct answer is A.

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 ranked ____, while India ranked ___ out of 187 countries in HDI for the year 2014.

  1. 75, 140

  2. 89, 126

  3. 91, 135

  4. 100, 135
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

China ranked 91 while India ranked 135 out of 187 countries in HDI for the year 2014. India HDI price for 2014 is 0.609 which put the nation in the average individual growth group, position it at 130 out of 188 country and territory. 

The HDI is a synopsis extent of essential accomplishment level in human development. The health HDI is measured by the life expectancy as calculated at the time of birth in each country. 

China has become a country with a high level of human development making it the only country since 1990 to emerge from a low development level.

The correct answer is C.

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
Multiple choice history the making of a global world causes of nazism feudalism in europe british exploitation of the indian economy

What was the Bretton wood system?

  1. Post war the military system

  2. Post war political system

  3. Post war international economic system

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

The Bretton Woods system was established in 1944 to regulate the international monetary and financial order after World War II. It led to the creation of the IMF and the World Bank.