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

What is the National Security Argument for import substitution policies?

  1. That import substitution policies are necessary to protect national security.

  2. That import substitution policies are always beneficial.

  3. That import substitution policies should be permanent.

  4. That import substitution policies are only necessary for developing countries.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The National Security Argument states that import substitution policies are necessary to protect national security by ensuring that a country is not dependent on imports for essential goods.

Multiple choice

What is the Employment Argument for import substitution policies?

  1. That import substitution policies are necessary to create jobs.

  2. That import substitution policies are always beneficial.

  3. That import substitution policies should be permanent.

  4. That import substitution policies are only necessary for developing countries.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The Employment Argument states that import substitution policies are necessary to create jobs by promoting domestic production and reducing imports.

Multiple choice

What is the Infant Industry Argument against import substitution policies?

  1. That import substitution policies can lead to higher prices for consumers.

  2. That import substitution policies can reduce efficiency.

  3. That import substitution policies can slow technological progress.

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

The Infant Industry Argument against import substitution policies states that they can lead to higher prices for consumers, reduced efficiency, and slower technological progress.

Multiple choice

What is the Balance of Payments Argument against import substitution policies?

  1. That import substitution policies can lead to a trade deficit.

  2. That import substitution policies can reduce exports.

  3. That import substitution policies can lead to a weaker currency.

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

The Balance of Payments Argument against import substitution policies states that they can lead to a trade deficit, reduced exports, and a weaker currency.

Multiple choice

What is the National Security Argument against import substitution policies?

  1. That import substitution policies can make a country more dependent on imports.

  2. That import substitution policies can lead to a weaker military.

  3. That import substitution policies can make a country more vulnerable to economic coercion.

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

The National Security Argument against import substitution policies states that they can make a country more dependent on imports, lead to a weaker military, and make a country more vulnerable to economic coercion.

Multiple choice

What is the current consensus among economists on the effectiveness of import substitution policies?

  1. That import substitution policies are generally beneficial.

  2. That import substitution policies are generally harmful.

  3. That the effectiveness of import substitution policies depends on the specific circumstances of a country.

  4. That there is no consensus among economists on the effectiveness of import substitution policies.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The current consensus among economists is that the effectiveness of import substitution policies depends on the specific circumstances of a country, such as its level of development, its trade balance, and its industrial structure.

Multiple choice

What is the term for the illegal trade of wildlife and wildlife products?

  1. Poaching

  2. Wildlife trafficking

  3. Illegal wildlife trade

  4. Black market wildlife trade
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Wildlife trafficking is the term for the illegal trade of wildlife and wildlife products, which is a major threat to biodiversity and can drive species to extinction.

Multiple choice

Which round of trade negotiations was held in Geneva, Switzerland, from 1947 to 1948?

  1. Kennedy Round

  2. Uruguay Round

  3. Tokyo Round

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

The Geneva Round was the first round of trade negotiations held under the GATT. It resulted in the reduction of tariffs on a wide range of products.

Multiple choice

Which round of trade negotiations was launched in Tokyo, Japan, in 1973?

  1. Uruguay Round

  2. Tokyo Round

  3. Doha Round

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

The Tokyo Round was held in Tokyo, Japan, from 1973 to 1979. It resulted in the reduction of tariffs on a wide range of industrial and agricultural products, as well as the establishment of new rules on non-tariff barriers to trade.

Multiple choice

Which round of trade negotiations was launched in Doha, Qatar, in 2001?

  1. Uruguay Round

  2. Doha Round

  3. Tokyo Round

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

The Doha Round was launched in Doha, Qatar, in 2001. It is the most recent round of trade negotiations held under the WTO. The Doha Round aims to reduce tariffs and other trade barriers, as well as to address issues related to intellectual property, investment, and trade in services.

Multiple choice

Which round of trade negotiations was held in Seattle, United States, in 1999?

  1. Seattle Round

  2. Doha Round

  3. Tokyo Round

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

The Seattle Round was held in Seattle, United States, in 1999. It was the third ministerial conference of the WTO. The Seattle Round was unsuccessful in reaching an agreement on a new round of trade negotiations.

Multiple choice

Which round of trade negotiations was held in Cancún, Mexico, in 2003?

  1. Cancún Round

  2. Doha Round

  3. Tokyo Round

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

The Cancún Round was held in Cancún, Mexico, in 2003. It was the fifth ministerial conference of the WTO. The Cancún Round was unsuccessful in reaching an agreement on a new round of trade negotiations.

Multiple choice

Which round of trade negotiations was held in Hong Kong, China, in 2005?

  1. Hong Kong Round

  2. Doha Round

  3. Tokyo Round

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

The Hong Kong Round was held in Hong Kong, China, in 2005. It was the sixth ministerial conference of the WTO. The Hong Kong Round resulted in some progress on the Doha Round negotiations, but a final agreement was not reached.

Multiple choice

Which round of trade negotiations was held in Geneva, Switzerland, in 2009?

  1. Geneva Round

  2. Doha Round

  3. Tokyo Round

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

The Geneva Round was held in Geneva, Switzerland, in 2009. It was the seventh ministerial conference of the WTO. The Geneva Round resulted in some progress on the Doha Round negotiations, but a final agreement was not reached.

Multiple choice

Which round of trade negotiations was held in Bali, Indonesia, in 2013?

  1. Bali Round

  2. Doha Round

  3. Tokyo Round

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

The Bali Round was held in Bali, Indonesia, in 2013. It was the ninth ministerial conference of the WTO. The Bali Round resulted in the adoption of the Trade Facilitation Agreement, which aims to reduce the time and cost of trading goods across borders.