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 foreign trade in india the government and economic development indian economy on the eve of independence impact of technology on livelihoods

_____ is the linkage of nation's markets with global markets.

  1. Liberalisation

  2. Privatisation

  3. Globalisation

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

Globalisation refers to the integration of markets in the global economy.  Markets where globalisation is particularly common include financial markets, such as capital markets, mone and credit markets, and insurance markets, commodity markets, such as markets for oil, coffee, tin, and gold, and product markets, such as markets for motor vehicles and consumer electronics.

Multiple choice economics foreign trade in india the government and economic development indian economy on the eve of independence impact of technology on livelihoods

Foreign trade is financed by all the following except __________________.

  1. Export Credit and Guarantee Corporation

  2. EXIM Bank

  3. Commercial Banks and Exchange Banks

  4. National Co-operative Development Corporation
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The National Co-operative Development Corporation (NCDC) focuses on the development of cooperatives in the agricultural and allied sectors, not on financing foreign trade.

Multiple choice business economics and quantitative methods foreign trade in india the government and economic development indian economy on the eve of independence impact of technology on livelihoods

What is 'deemed exports' provisions applicable to?

  1. Deemed export provision is applicable only to goods

  2. Deemed export provision is applicable only to services

  3. Deemed export provision is applicable both to goods and services

  4. Deemed export provision is applicable when goods and services are supplied to SEZ units/ developers
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

“Deemed exports” classically refer to those transactions under which provide of goods do not leave the country, and payment for such requirements is innermost in Indian Rupees shall be treated as 'deemed exports', provided that supplies are artificial or formed in India. 

The Deemed export advantage consists of refund on duty on expenses on imports or excisable substance used in the manufacture of goods which are supplied to the suitable projects. 'Deemed Export Benefit' method profits are availed of by units in Power, Petroleum plant, manure and Nuclear Power Projects.

Thus, the correct option is A.

Multiple choice business economics and quantitative methods foreign trade in india the government and economic development indian economy on the eve of independence impact of technology on livelihoods

Which of the following is the most appropriate cause of exports surplus in an economy?

  1. If the economy has diversified exports which are compulsive imports for other economies.

  2. If the economy has almost put everything in the negative list of import and has healthy forex reserves.

  3. If the economy promotes exports and imports without any barriers with incentives given to the exporters.

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

This has been the case of the developed economies of the world whose over had surplus in its trade accounts.

Multiple choice political science international institutions objectives and reasons for the establishment of the united nations reasons for the establishment of the united nations united nations organisation

Barter system is a trade in which goods are exchanged without the use of ____________.

  1. Goods

  2. Water

  3. Money

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

The barter system is a method of exchange where participants directly trade goods or services for other goods or services. This system functions without the use of a medium of exchange, such as money.

Multiple choice economics solution to basic economic problems under different economic systems supply curve and price determination in the market price mechanism and solutions supply

What is the full form of DFEC?

  1. Devaluated Foreign Exchange Control

  2. Direct Foreign Exchange control

  3. Duty Free Export Credit

  4. Direct Free Export Control
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

DFEC stands for Duty Free Export Credit which refers to the scheme that allowed credit sales of export goods on which export duty or taxes were subsidies. 

Multiple choice commercial applications bases of accounting cash and mercantile system basis of accounting basis of accounting system

Mercantile system is followed by __________.

  1. Merchants, trade and industry

  2. Doctors, lawyers, brokers etc.

  3. Industry, trade and agriculturist

  4. Multi-national firms
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Mercantile system is the system which states that revenue and expenditure must be recorded at the time they are recognized or incurred. Mercantile is followed by Merchants, trade and industry as they get arithmetic accurate financial statements and it helps them to take important decisions.

Multiple choice economics concept of consumption function, saving function and investment function capital economy of a village wealth, capital and money

In the pre-reforms period (i.e. before 1991), import permission was available primarily for _______________.

  1. Consumer Goods

  2. Capital Goods

  3. Both (a) and (b)

  4. Neither (a) nor (b)
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In the pre-1991 era, India followed a policy of import substitution. Import permissions were strictly regulated and prioritized for essential capital goods and machinery needed for industrialization, rather than consumer goods.

Multiple choice

goods coming from a country

  1. import

  2. export

  3. lorax

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

An export is a good or service produced in one country and sold to another. Imports are goods brought into a country from abroad.

Multiple choice infrastructure in india infrastructure tertiary sector economics

TRAI regulates the functioning of which of the following services?

  1. Port

  2. Trade

  3. Telecom

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

TRAI is Telecom Regulatory Authority of India. Its main purpose is to regulate telecommunication services, adjudicate disputes, dispose appeals and protect the interest of the service providers as well as consumers.

Multiple choice

In order to limit their dependence on foreign materials, what did Japan seek?

  1. They sought resourceful colonies as a supplement.

  2. They wanted to bring foreigners to Japan to help.

  3. They wanted to make an exclusive trade deal with the US.

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

Japan lacked essential natural resources like oil, rubber, and iron. To sustain its industrial and military growth, it sought to acquire colonies in Asia that could provide these raw materials.

Multiple choice

What is the policy of Mercantilism?

  1. Expand the country as much as possible

  2. Trade with local merchants

  3. Maximize exports and minimize imports

  4. Maximize imports and minimize exports
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Mercantilism is an economic theory that advocates for maximizing exports and minimizing imports to accumulate wealth, typically in the form of gold and silver.

Multiple choice britain and the world the beginnings of empire history

_______ is a trading system designed to protect British industry and control trade. 

  1. Protectionism

  2. Capitalism

  3. Liberalism

  4. Mercantilism
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Mercantilism was an economic theory and practice prevalent in Europe from the 16th to 18th century, focusing on state-controlled trade to increase national wealth and protect domestic industry.