Economics ยท 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 name of the agreement that India and Israel signed in 2022 to promote trade and economic cooperation?

  1. The India-Israel Trade Agreement

  2. The India-Israel Free Trade Agreement

  3. The India-Israel Bilateral Trade Agreement

  4. The India-Israel Economic and Trade Agreement
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The India-Israel Economic and Trade Agreement was signed in 2022 to promote trade and economic cooperation between the two countries.

Multiple choice

What is the basic structure of the Customs Tariff Act?

  1. It is divided into 9 chapters.

  2. It contains 125 sections.

  3. It has 5 schedules.

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

The Customs Tariff Act is divided into 9 chapters, contains 125 sections, and has 5 schedules.

Multiple choice

What are the different types of duties that can be imposed under the Customs Tariff Act?

  1. Basic customs duty.

  2. Countervailing duty.

  3. Anti-dumping duty.

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

The different types of duties that can be imposed under the Customs Tariff Act include basic customs duty, countervailing duty, and anti-dumping duty.

Multiple choice

What is the procedure for claiming exemption from customs duty under the Customs Tariff Act?

  1. The importer must file an application with the customs authorities.

  2. The importer must provide documentary evidence to support the claim for exemption.

  3. The customs authorities will then decide whether to grant the exemption.

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

The procedure for claiming exemption from customs duty under the Customs Tariff Act involves the importer filing an application with the customs authorities, providing documentary evidence to support the claim for exemption, and the customs authorities then deciding whether to grant the exemption.

Multiple choice

What are the consequences of importing goods without paying customs duty?

  1. The goods may be seized by the customs authorities.

  2. The importer may be fined.

  3. The importer may be imprisoned.

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

The consequences of importing goods without paying customs duty include the goods being seized by the customs authorities, the importer being fined, and the importer being imprisoned.

Multiple choice

What is the dispute resolution mechanism available under the Customs Tariff Act?

  1. The importer can appeal to the Commissioner of Customs.

  2. The importer can appeal to the Customs, Excise and Service Tax Appellate Tribunal (CESTAT).

  3. The importer can appeal to the Supreme Court of India.

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

The dispute resolution mechanism available under the Customs Tariff Act includes the importer being able to appeal to the Commissioner of Customs, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), and the Supreme Court of India.

Multiple choice

What are the recent amendments to the Customs Tariff Act?

  1. The Customs Tariff Act was amended in 2018 to increase the basic customs duty on certain goods.

  2. The Customs Tariff Act was amended in 2019 to introduce a new anti-dumping duty.

  3. The Customs Tariff Act was amended in 2020 to provide exemption from customs duty for certain goods imported for COVID-19 relief.

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

The Customs Tariff Act was amended in 2018 to increase the basic customs duty on certain goods, in 2019 to introduce a new anti-dumping duty, and in 2020 to provide exemption from customs duty for certain goods imported for COVID-19 relief.

Multiple choice

What are the challenges faced in implementing the Customs Tariff Act?

  1. Smuggling of goods.

  2. Under-invoicing of goods.

  3. Misclassification of goods.

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

The challenges faced in implementing the Customs Tariff Act include smuggling of goods, under-invoicing of goods, and misclassification of goods.

Multiple choice

What are the measures taken by the government to address the challenges in implementing the Customs Tariff Act?

  1. Strengthening border security.

  2. Improving intelligence gathering.

  3. Automating customs procedures.

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

The measures taken by the government to address the challenges in implementing the Customs Tariff Act include strengthening border security, improving intelligence gathering, and automating customs procedures.

Multiple choice

What is the future of the Customs Tariff Act?

  1. The Customs Tariff Act is likely to be amended in the future to keep pace with changing economic conditions.

  2. The Customs Tariff Act is likely to be replaced by a new law in the future.

  3. Both of the above.

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

The Customs Tariff Act is likely to be amended in the future to keep pace with changing economic conditions, and it is also likely to be replaced by a new law in the future.

Multiple choice

Which of the following is a type of agricultural trade agreement?

  1. Free trade agreement

  2. Tariff

  3. Quota

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

Agricultural trade agreements include free trade agreements to eliminate tariffs and quotas, tariffs to protect domestic producers, and quotas to limit the quantity of agricultural products imported.

Multiple choice

What are some international conventions and agreements that address consumer protection in the sports and fitness sector?

  1. The United Nations Guidelines for Consumer Protection

  2. The OECD Guidelines for Consumer Protection

  3. The World Trade Organization (WTO) Agreement on Technical Barriers to Trade

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

The United Nations Guidelines for Consumer Protection, the OECD Guidelines for Consumer Protection, and the World Trade Organization (WTO) Agreement on Technical Barriers to Trade are among the international conventions and agreements that address consumer protection in the sports and fitness sector.

Multiple choice

What is a trade?

  1. A transaction in which a player is transferred from one team to another.

  2. A transaction in which a player is released from his contract.

  3. A transaction in which a player signs a new contract with his current team.

  4. A transaction in which a player is suspended from playing.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A trade is a transaction in which a player is transferred from one team to another. Trades can be made for a variety of reasons, such as to improve a team's roster or to get rid of a player who is no longer wanted.

Multiple choice

What is a free zone?

  1. A designated area within a country where goods can be imported and stored duty-free

  2. A secure area within a port where goods can be transshipped without paying customs duties

  3. A special economic zone where businesses are exempt from certain taxes and regulations

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

A free zone is a designated area within a country where goods can be imported and stored duty-free. This allows businesses to store goods in a free zone without paying customs duties or taxes, until the goods are released for consumption or re-export. Free zones are often located near ports or airports to facilitate the movement of goods.

Multiple choice

Who is eligible to use a free zone?

  1. Importers of record

  2. Exporters of record

  3. Manufacturers

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

All of the above parties are eligible to use a free zone. Importers of record can store imported goods in a free zone without paying customs duties or taxes, until the goods are released for consumption or re-export. Exporters of record can use a free zone to store goods that are intended for re-export. Manufacturers can use a free zone to store raw materials and finished goods, and to assemble or manufacture products without paying customs duties or taxes.