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 economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

Goods that a country gets from other countries are called______.

  1. Exports

  2. Imports

  3. Foreign Trade

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

Exports and imports are the main elements of foreign trade. 

Export - When goods are sent from one country to another then it is called export.
Import - When goods are purchased from other countries then it is called import.
When the Export value is more than import value then foreign trade will be favourable to a country.

Multiple choice geography agriculture in india - iii : cash crops cash crops plantation of crops cash crops of india agricultural seasons and crops

Which of the following commodities is chiefly exported by India to Sri Lanka?

  1. Tea

  2. Rubber

  3. Jute manufatures

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

Cotton textiles are a major export commodity from India to various neighboring countries, including Sri Lanka, due to established trade routes and demand.

Multiple choice organisation of commerce and management the nature of the indian economy part 2 industrial revolution in india subsidies, industrial policy and trade policy cottage and small scale industries

State a protectionism technique used by the government to promote small scale industries. 

  1. Quotas

  2. Tariffs

  3. Reserving production of few products to small scale industries only

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

Protectionist techniques included quotas, tariffs, and the reservation of specific products for small-scale production to shield them from large-scale competition.

Multiple choice social science government and taxes types of tax types of taxes government budget and taxation

Which of the following is not a non-tariff barrier?

  1. Voluntary export restraint

  2. Health and product standards

  3. Environmental protection laws

  4. Ad-valorem duties
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Tariff barriers refers to various tariffs or duties imposed on foreign trade transactions to impose trade restrictions. Among the given options ad-valorem duty is tariff barrier, while the others are non-tariff barriers to trade.
Ad-valorem duty is imposed on import goods as percentage of the total value of goods imported.

Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

Liberalization means ______.

  1. removal of trade barriers

  2. opening border with neighbouring countries

  3. relaxation of Government policies and regulations in order to encourage free and fair growth of trade and industry.

  4. abolition of various business laws and acts
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Liberalization refers to the relaxation of Government policies and regulations in order to encourage free and fair growth of trade and industry. It is one of the policies under new economic policy which was adopted by Indian economy in 1991. It promoted free and fair trade.

Multiple choice civics consumers' awareness consumer protection act of 1986 need for consumer awareness consumer : satisfaction and protection

In the pre-reforms period (i.e. before 1991), control was exercised over import of _______________.

  1. Consumer Goods

  2. Capital Goods

  3. Both (a) and (b)

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

Before the 1991 economic reforms, India followed a protectionist policy that strictly controlled the import of consumer goods to encourage domestic production.

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

As a result of the foreign trade reforms ________.

  1. the number of import licenses has increased.

  2. only a few types of goods and services can now be exchanged freely.

  3. EPCG scheme has been abolished.

  4. the average tariff rates have been reduced.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Prior to the 1991 economic liberalisation,India was a closed economy due to the average tariffs exceeding 200 percent and the extensive quantitative restrictions on imports. Foreign investment was strictly restricted to only allow Indian ownership of businesses. Since the liberalisation, India's economy has improved mainly due to increased foreign trade.

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.