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 organisation of commerce and management liberalization, privatization and globalization concept and necessity of globalization highlights of lpg policy multinational corporations

Integration of national economies into world economy is called _______________.

  1. Globalisation

  2. Privatization

  3. Liberalization

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

Integration of national economies into world economy is called globalization.Globalization may be defined as "the growing economic interdependence of countries worldwide through increasing volume and variety of cross border transactions in goods and services and the international capital flows and also through the more rapid and widespread diffusion of technology.

Multiple choice organisation of commerce and management liberalization, privatization and globalization concept and necessity of globalization highlights of lpg policy multinational corporations

Integration of national economies into a world economy is known as _______.

  1. privatization

  2. globalization

  3. liberalization

  4. all of them
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Integration of national economies into a world economy is known as globalization.Globalization may be defined as "the growing economic interdependence of countries worldwide through increasing volume and variety of cross border transactions in goods and services and the international capital flows and also through the more rapid and widespread diffusion of technology.

Multiple choice organisation of commerce and management liberalization, privatization and globalization concept and necessity of globalization highlights of lpg policy multinational corporations

Which of the following is NOT included in liberalization?

  1. Reducing in tax matters

  2. Abolition of licensing

  3. Simplification of policies

  4. Imposition of tariff barriers
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Liberalization refers to end of licence, quota and many more restrictions and control that were put on many industries. The term basically refers to opening of the economy to the world and providing freedom to the departmental and public sector undertakings to access capital market in order to achieve international competitiveness. It includes removal of tariff barriers for better flow of goods and services between the countries. 

Multiple choice organisation of commerce and management liberalization, privatization and globalization concept and necessity of globalization highlights of lpg policy multinational corporations

Liberalization does not includes_______________.

  1. Abolishing industrial licensing requirement in most of the industries

  2. Freedom in deciding the scale of business activities

  3. Restriction in fixing prices of goods and services

  4. Simplifying the procedure for imports and exports.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Liberalization refers to end of licence, quota and many more restrictions and control that were put on many industries. The term basically refers to opening of the economy to the world and providing freedom to the departmental and public sector undertakings to access capital market in order to achieve international competitiveness. It does not provide restrictions in fixing prices of goods and services in the economy. 

Multiple choice organisation of commerce and management liberalization, privatization and globalization concept and necessity of globalization highlights of lpg policy multinational corporations

______ aims at integrating our national economy with that of the world.

  1. Globalization

  2. Liberalization

  3. Privatization

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

Globalization refers to the integration of various economies of the world by removing of strict policies in regard to the import and export of goods and services and foreign direct investments. Globalization involves greater interaction and interdependence among the various nations of the global economy which makes the market very vast. 

Multiple choice geography human environment interactions: the tropical and the subtropical region plantation of crops agricultural nature of indian economy the nature of the indian economy part 1

Who is putting pressure on India to allow greater imports of crops produced in their countries?

  1. Developed countries

  2. Developing countries

  3. Underdeveloped countries

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

Developed countries often pressure developing nations to open their markets for agricultural imports to support their own large-scale, subsidized farming sectors.

Multiple choice economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

Deficit Balance of trade suggests that __________.

  1. value of exports of goods > value of imports of goods

  2. value of imports of goods > value of exports on goods

  3. value of exports of goods = value of imports of goods

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

A deficit in the balance of trade occurs when the value of imports of goods exceeds the value of exports of goods.

Multiple choice economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

Balance of unrequited transfers includes all gifts, donations, grants and reparation, receipts and payments to foreign countries (true/false)

  1. True

  2. False

  3. Cant say

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

Unrequited transfers (also known as unilateral transfers) in the balance of payments include gifts, donations, and grants where no good or service is received in return.

Multiple choice economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

Measures introduced to correct BOP position in 1992-93 were ______.

  1. exchange rate management

  2. liberalization of import licensing

  3. tariff reductions

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

The 1991 economic reforms included comprehensive measures to stabilize the BOP, including currency devaluation (exchange rate management), the removal of restrictive import licensing, and the lowering of customs tariffs.

Multiple choice organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

In the pre-reforms period (i.e. before 1991), restrictions on import consisted of:

  1. Import Licenses

  2. Quantitative Restrictions

  3. Quota System

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

India had  adopted socialist form of economy before 1991 which involved a lot of government intervention into International trade where import was banned on most of the goods through quota and licenses so that the foreign goods does not dominate domestic market. 

Multiple choice organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

Which of the following does not relate to the External Sector Reforms in 1991?

  1. Reduction in the number of items covered by import licenses

  2. Permission for free trade of all items except a negative list of imports and exports

  3. Increasing of import/ export duty rates

  4. Permission for foreign direct investment
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Increasing of import/ export duty rates does not relate to the External Sector Reforms in 1991. As per New economic policy which was adopted in 1991, the import rates and export duty rates were to be decreased so that there would be fair flow of goods between the domestic country and other countries as a result of which there will be rationalization in the tariff structure,

Multiple choice organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

Lowering of Import / Export Duty Rates, as part of the External Sector Reforms in 1991, relates to -

  1. Exchange Rate Stabilisation

  2. Rationalisation of Tariff Structure

  3. Quantitative Restrictions

  4. Foreign Direct Investment
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

As a part of globalization, the import rates and export duty rates were to be decreased so that there would be fair flow of goods between the domestic country and other countries as a result of which there will be rationalization of tariff structure. 

Multiple choice book keeping and accountancy accounting equation meaning, objectives and need of adjustments need for adjustments accounting equations and transactions

More MCQs on Foreign Exchange Management 1. Which of the following is not an example of an international trade draft?

  1. Time draft.

  2. Sight draft.

  3. Both the first and second answers are correct

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

Time draft and Sight draft are both types of international trade drafts, as is Usance draft (which is essentially another term for time draft). The question asks what is NOT an example of a single draft type - option C says 'Both the first and second' which is not itself a draft type but a category combining multiple types.

Multiple choice business economics and quantitative methods nature and scope of economics definition, scope, importance and limitation of statistics introduction - statistics for economics meaning and definition of statistics

Which of the following pairs is not correctly matched?

  1. WTO - Generally forbids the use of quantitative restrictions on trade

  2. IMF - Provides finance to correct disequilibrium in balance of payments

  3. RBI - Promotes trade among countries

  4. IBRD - Gives long term loans for development
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Option C incorrectly matched as RBI promotes monetary policy in India and the WTO promotes trade among countries.