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

Exports and imports come under the purview of __________.

  1. Ministry of Finance

  2. Ministry of Commerce

  3. Ministry of External Affairs

  4. Ministry of Home Affairs
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Exports and imports come under the purview of Ministry of Commerce. The Ministry of Commerce is the nodal agency for the formulation of policies for increasing the export of the country in various commodities.

Multiple choice business economics and quantitative methods introduction to managerial economics theories of employment and income concept of international trade macro economic analysis

A/An _____________ economy is an economy which does not engage in international trade.

  1. open

  2. developing

  3. closed

  4. developed
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A closed economy is one that has no trading activity with outside economies. The closed economy is therefore entirely self-sufficient, which means no imports come into the country and no exports leave the country. The closed economy is self-sufficient, which means no imports come into the country and no exports leave the country. The purpose of a closed economy is to provide domestic consumers with everything they need from within the country's borders.

Multiple choice business economics and quantitative methods introduction to managerial economics theories of employment and income concept of international trade macro economic analysis

An open economy is an economy that engages in international trade in goods and services.

  1. True

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

A country that undertakes trade with other countries, i.e, imports and exports goods and services, is termed as an open economy. The open economy is characterised with four sectors, namely, firms, households, government and the foreign sector.


Multiple choice business economics and quantitative methods introduction to managerial economics theories of employment and income concept of international trade macro economic analysis

If a nation has an open economy it means that the nation ______________.

  1. allows private ownership of capital

  2. has flexible exchange rates

  3. has fixed exchange rates

  4. conducts trade with other countries
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Open economy means that the nation exports and import in goods and services very freely following the rules and regulations of world trade organisation with both fixed as well as flexible exchange rates.

Multiple choice business economics and quantitative methods introduction to managerial economics theories of employment and income concept of international trade macro economic analysis

A closed economy is one which ________________.

  1. Does not trade with other countries

  2. Does not posses any means of international transport

  3. Does not have a coastal line

  4. Is not a member of the U.N.O
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A closed economy is one that has no trading activity with outside economies. The closed economy is therefore entirely self-sufficient, which means no imports come into the country and no exports leave the country.

Multiple choice organisation of commerce and management trade trade and factors affecting trade trading and economic organisations trade and trade organisations

Trade carried on within the domestic territory of a country is known as______ trade.

  1. International

  2. External

  3. Multilateral

  4. Internal
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
When buying and selling of goods and services takes place within the geographical limits of a country it is known as internal trade. The main features of internal trade are:
1) the buying and selling of goods and services takes place within a country.
2) the payment are made and received in the home country only.
3) there are no or very few formalities to be completed by the traders.
Multiple choice organisation of commerce and management trade trade and factors affecting trade trading and economic organisations trade and trade organisations

Which of the following is considered the economic barometer for a country?

  1. Local trade

  2. State level trade

  3. International trade

  4. Internal trade
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
Advancement of international trade of a country is an index to its economic prosperity. It is, therefore, considered the economic barometer for a country.
Multiple choice organisation of commerce and management trade trade and factors affecting trade trading and economic organisations trade and trade organisations

Which one of the following terms is used to describe trade between two or more countries?

  1. Internal trade

  2. External trade

  3. International trade

  4. Local trade
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

International trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product (GDP)

Multiple choice organisation of commerce and management trade trade and factors affecting trade trading and economic organisations trade and trade organisations

If the commodities manufactured in Surat and sold in Mumbai or Delhi, then it is ________.

  1. International trade

  2. Internal trade

  3. Free trade

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

Trade occurring within the borders of a single country, such as between two cities in India, is classified as internal or domestic trade.

Multiple choice organisation of commerce and management trade trade and factors affecting trade trading and economic organisations trade and trade organisations

Trade occurs because of ______ of goods in one place.

  1. Excess

  2. Surplus

  3. Large amount

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

Trade occurs because of surplus of goods in one place. A trade surplus is an economic measure of a positive balance of trade, where a country's exports exceed its imports.