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 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.

Multiple choice geography globalization and trade mncs and impact of globalization effects of globalisation in india globalisation and the indian economy

We import a few items which are must for our economic development. They are __________.

  1. Copper

  2. Zinc

  3. Fertilizers

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

Developing economies often rely on imports of essential raw materials and industrial inputs like copper, zinc, and fertilizers to support infrastructure and agricultural growth.

Multiple choice geography globalization and trade mncs and impact of globalization effects of globalisation in india globalisation and the indian economy

Advantages of multinationals to home countries are __________.

  1. ensure optimum utilisation of resources

  2. promote bilateral trade relations

  3. promote global Co-operations

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

A multinational corporation is an organisation which has its main headquarter in home country and operates with its subsidiaries in two or more countries. The main advantages of MNC to home countries are as follows:

  1. It ensure optimum utilisation of resources.
  2. It promote bilateral trade relations.
  3. It promote global co-operations.etc.

Multiple choice economics international economics indian economy during reforms liberalization, privatisation and globalisation: an appraisal structural changes in indian economy after liberalization

FDI in E-Commerce activities is allowed upto ______.

  1. 46%

  2. 51%

  3. 100%

  4. 44%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
FDI stands for Foreign Direct Investment. FDI refers to the investment made by an individual or firm from one country into business interests of different country.
FDI in E-Commerce activities is allowed upto 100% in India
Multiple choice geography the world after world war - ii basics of european union trade and trade organisations trade

Which of the following is an example of a non-tariff barrier to trade?

  1. A quota on the number of goods that can enter a country

  2. National product safety standards

  3. A tax levied on imported goods

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

Tariffs are taxes that governments levy on imports of goods in order to protect domestic producers and raise revenues for the government. Sometimes tariffs are accompanied by quotas, which set import limits. Sometimes governments are able to restrict trade and protect domestic producers without the use of tariffs. National product safety standards are an example of a non-tariff barrier to trade. For example, by setting national safety standards, a country can effectively bar foreign producers from selling their goods in the country unless they make modifications for that specific national market-usually too costly for a manufacturer to undertake. Non-tariff barriers to trade proliferated during the economic downturn in the 1970s, as national governments sought to protect their domestic producers. 

Multiple choice geography the world after world war - ii basics of european union trade and trade organisations trade

Which of the following is not a feature of the single market developed by the European Union:

  1. Standardised laws applicable to all member states

  2. Free movement of people, goods, services, and capital

  3. Abolition of passport controls

  4. Control of human trafficking
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The European Single Market is a single market which seeks to guarantee the free movement of goods, capital, services, and labour. 

A single market is a market in which most trade barriers have been removed (for goods) with some common policies on product regulation, and freedom of movement of the factors of production (capital and labour) and of enterprise and services including the abolition of passport controls. 

The goal is that the movement of capital, labour, goods, and services between the members is as easy as within them. Control of human trafficking is not a feature of the single market.

Multiple choice geography the world after world war - ii basics of european union trade and trade organisations trade

Which of the following is not a consequence of adopting a common currency by the European Union:

  1. Eliminated foreign exchange hurdles

  2. Promoted free trade across the union

  3. Boosted trade among the member nations

  4. Contributed to world peace
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Euro eliminated foreign exchange hurdles encountered by companies doing business across the European border and promoted a free trade policy. This further contributed to a boost in trade among the member nations. Contribution to world peace is not  a direct consequence of adopting a common currency.

Multiple choice political science our society marginalisation in india understanding marginalisation challenges and solutions

A process of moving goods illegally into or out of the country is called _______.

  1. Profiteering

  2. Smuggling

  3. Trading

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

Smuggling is the illegal transportation of objects, substances, information or people. Smuggling includes illegal trade, such as in the drug trade, illegal weapons trade, exotic wildlife trade, illegal immigration or illegal emigration, tax evasion etc.

Multiple choice political science our society marginalisation in india understanding marginalisation challenges and solutions

Which of the following is/are the type/s of smuggling?

  1. Goods smuggling

  2. Child trafficking

  3. Women trafficking

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

Goods smuggling, Women trafficking, Child trafficking are the types of smuggling.

  • Goods smuggling is a process where merchants attempt to supply demand for a good or service that is illegal. It includes smuggling of drugs, weapons etc.
  • Women trafficking is a kind of smuggling in which women are transported for sexual services.
  • Child trafficking is another kind of smuggling in which children are transported for sexual services and also to carry out the work.

Multiple choice organization of commerce and management markets and marketing meaning, nature and importance of services introduction to services nature and types of services

Technological improvements are similar to international trade since both ____________________.

  1. increase the nation's aggregate Income

  2. reduce unemployment for all domestic markers

  3. neither helps in exports nor in imports

  4. make loss to nation
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Intentional trade has brought countries together. It involves technological improvements to cater to the needs of customers across the world. Such improvements help increase the nation's aggregate income.

Multiple choice organization of commerce and management markets and marketing meaning, nature and importance of services introduction to services nature and types of services

International trade in goods & services is sometimes used as a substitute for all of the following except ________________________________.

  1. international movement of capital

  2. domestic production of different goods and services

  3. international movement of labor

  4. international movement of technology
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

International trade in goods & services is sometimes used as a substitute for international movement of capital, international movement of labour and international movement of technology except domestic production of different goods and services. Goods and services which are produced and consumed within the given territory are not included in the domain of international trade in goods and services.

Multiple choice organization of commerce and management markets and marketing meaning, nature and importance of services introduction to services nature and types of services

International trade is based on the idea that ______________.

  1. exports should exceed imports

  2. resources are less mobile internationally are goods

  3. resources are more mobile internally than are goods.

  4. imports should not be there
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

International trade is based on the idea that resources are less mobile internationally are goods. International trade can be defined as a process by which exhange of capital goods and services are done across border of different territories. It forms a crucial share in an economy's GDP.

Multiple choice civics haat (a weekly market) a weekly market role of market role of market/bazaar

Who is an exporter?

  1. An exporter is a person who sells goods to foreign countries.

  2. An exporter is a person who buys goods from foreign countries.

  3. An exporter is a person who resides in foreign countries.

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

Exporter is a person or a company authorized by government agency to move the goods out of the border of a country. The value of goods is received from the overseas buyer by the exporter, as he is considered the seller of goods. The exporter receives export order against goods to be exported.