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

Which of the following is a key objective of the United Nations Conference on Trade and Development (UNCTAD) in international economic negotiations?

  1. Promoting trade and development

  2. Assisting developing countries in their trade negotiations

  3. Providing technical assistance to developing countries

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

UNCTAD's objectives in international economic negotiations include promoting trade and development, assisting developing countries in their trade negotiations, and providing technical assistance to developing countries.

Multiple choice

What is the term used to describe a situation where a country completely prohibits the import or export of a particular good?

  1. Embargo

  2. Tariff

  3. Quota

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

An embargo is a complete prohibition on the import or export of a particular good.

Multiple choice

Which of the following is NOT a principle of the WTO?

  1. Non-discrimination

  2. Transparency

  3. Reciprocity

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

Protectionism is a policy that restricts trade by imposing tariffs, quotas, or other barriers. It is not a principle of the WTO, which promotes free trade.

Multiple choice

What is the most-favored-nation (MFN) principle?

  1. All WTO members must treat each other equally in terms of trade.

  2. WTO members can discriminate against certain countries in their trade policies.

  3. WTO members can impose tariffs on imports from non-member countries.

  4. WTO members can negotiate preferential trade agreements with each other.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The MFN principle requires WTO members to treat all other members equally in terms of trade. This means that they cannot discriminate against any member by imposing higher tariffs or other trade barriers.

Multiple choice

How does the TRIPS Agreement affect access to medicines?

  1. It makes it more difficult for countries to import generic drugs.

  2. It requires countries to provide compulsory licenses for the production of generic drugs.

  3. It allows countries to impose tariffs on imports of generic drugs.

  4. It has no impact on access to medicines.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The TRIPS Agreement requires countries to provide patent protection for pharmaceuticals, which can make it more difficult for countries to import generic drugs.

Multiple choice

How does the WTO promote transparency in trade policy?

  1. By requiring WTO members to notify the WTO of their trade regulations.

  2. By publishing a database of all trade regulations.

  3. By conducting regular reviews of WTO members' trade policies.

  4. By providing technical assistance to WTO members to help them implement their trade obligations.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The WTO requires its members to notify the WTO of their trade regulations, which are then published in a database. This helps to ensure that all WTO members are aware of each other's trade policies.

Multiple choice

Which of the following documents is required for import of goods under the Foreign Exchange Management (Import of Goods and Services) Regulations, 2000?

  1. Bill of Entry

  2. Shipping Bill

  3. Import License

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

All of the above documents are required for import of goods under the Foreign Exchange Management (Import of Goods and Services) Regulations, 2000.

Multiple choice

Who is responsible for ensuring that the import of goods is in accordance with the Foreign Exchange Management (Import of Goods and Services) Regulations, 2000?

  1. Importer

  2. Authorized Dealer

  3. Customs Authorities

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

The importer, authorized dealer, and customs authorities are all responsible for ensuring that the import of goods is in accordance with the Foreign Exchange Management (Import of Goods and Services) Regulations, 2000.

Multiple choice

What is the penalty for contravening the provisions of the Foreign Exchange Management (Import of Goods and Services) Regulations, 2000?

  1. Fine

  2. Imprisonment

  3. Both fine and imprisonment

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

The penalty for contravening the provisions of the Foreign Exchange Management (Import of Goods and Services) Regulations, 2000 is both fine and imprisonment.

Multiple choice

Which of the following is not a permitted mode of import under the Foreign Exchange Management (Import of Goods and Services) Regulations, 2000?

  1. Import under Advance License

  2. Import under Export Promotion Capital Goods Scheme

  3. Import under Special Economic Zone Policy

  4. Import under Parallel Market
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Import under Parallel Market is not a permitted mode of import under the Foreign Exchange Management (Import of Goods and Services) Regulations, 2000.

Multiple choice

What is the maximum value of goods that can be imported under the Foreign Exchange Management (Import of Goods and Services) Regulations, 2000 without an import license?

  1. $25,000
  2. $50,000
  3. $75,000
  4. $100,000
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The maximum value of goods that can be imported under the Foreign Exchange Management (Import of Goods and Services) Regulations, 2000 without an import license is $25,000.

Multiple choice

Which of the following is not a valid reason for seeking extension of the period of credit for import of goods?

  1. Delay in shipment

  2. Delay in customs clearance

  3. Delay in payment by the importer

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

Delay in payment by the importer is not a valid reason for seeking extension of the period of credit for import of goods.

Multiple choice

What is the penalty for contravening the provisions of the Foreign Exchange Management (Import of Goods and Services) Regulations, 2000 relating to import of services?

  1. Fine

  2. Imprisonment

  3. Both fine and imprisonment

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

The penalty for contravening the provisions of the Foreign Exchange Management (Import of Goods and Services) Regulations, 2000 relating to import of services is both fine and imprisonment.

Multiple choice

Which of the following is not a valid mode of import under the Foreign Exchange Management (Import of Goods and Services) Regulations, 2000 relating to import of services?

  1. Import under Advance License

  2. Import under Export Promotion Capital Goods Scheme

  3. Import under Special Economic Zone Policy

  4. Import under Parallel Market
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Import under Parallel Market is not a valid mode of import under the Foreign Exchange Management (Import of Goods and Services) Regulations, 2000 relating to import of services.

Multiple choice

What is the maximum value of goods and services that can be imported under the Foreign Exchange Management (Import of Goods and Services) Regulations, 2000 without an import license?

  1. $25,000
  2. $50,000
  3. $75,000
  4. $100,000
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The maximum value of goods and services that can be imported under the Foreign Exchange Management (Import of Goods and Services) Regulations, 2000 without an import license is $75,000.