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 term used to describe a situation where a country imports more goods and services than it exports?

  1. Balance of Trade

  2. Current Account

  3. Trade Deficit

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

Trade deficit refers to a situation where a country imports more goods and services than it exports.

Multiple choice

Which trade policy involves minimal government intervention and allows market forces to determine trade flows?

  1. Free Trade

  2. Protectionism

  3. Mercantilism

  4. Laissez-faire
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Laissez-faire is a trade policy that involves minimal government intervention and allows market forces to determine trade flows.

Multiple choice

What is the term used to describe a situation where a country exports more goods and services than it imports?

  1. Balance of Trade

  2. Current Account

  3. Trade Deficit

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

Trade surplus refers to a situation where a country exports more goods and services than it imports.

Multiple choice

Which trade policy involves government intervention to promote exports and restrict imports?

  1. Free Trade

  2. Protectionism

  3. Mercantilism

  4. Laissez-faire
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Mercantilism is a trade policy that involves government intervention to promote exports and restrict imports, typically through tariffs, quotas, and other measures.

Multiple choice

Which trade policy involves government intervention to restrict imports and promote domestic industries?

  1. Free Trade

  2. Protectionism

  3. Mercantilism

  4. Laissez-faire
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Protectionism is a trade policy that involves government intervention to restrict imports and promote domestic industries.

Multiple choice

What is the term used to describe the overall value of a country's exports minus the value of its imports?

  1. Balance of Trade

  2. Current Account

  3. Trade Deficit

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

Balance of trade refers to the overall value of a country's exports minus the value of its imports.

Multiple choice

Which trade policy involves government intervention to promote specific industries or sectors?

  1. Free Trade

  2. Protectionism

  3. Industrial Policy

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

Industrial policy is a trade policy that involves government intervention to promote specific industries or sectors, typically through subsidies, tax incentives, or other forms of support.

Multiple choice

What is the theory that argues that countries should focus on producing and exporting goods and services in which they have a comparative advantage?

  1. Mercantilism

  2. Comparative Advantage Theory

  3. Protectionism

  4. Laissez-faire
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Comparative advantage theory, developed by David Ricardo, argues that countries should specialize in producing and exporting goods and services in which they have a comparative advantage, even if they are less efficient at producing other goods and services.

Multiple choice

What is the term used to describe the illegal trade in wildlife and wildlife products?

  1. Wildlife trafficking

  2. Poaching

  3. Illegal wildlife trade

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

Wildlife trafficking, poaching, and illegal wildlife trade all refer to the illegal trade in wildlife and wildlife products.

Multiple choice

Which international agreement aims to reduce trade barriers and promote free trade among its member countries?

  1. World Trade Organization (WTO)

  2. United Nations (UN)

  3. International Monetary Fund (IMF)

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

The World Trade Organization (WTO) is an international agreement that aims to reduce trade barriers and promote free trade among its member countries.

Multiple choice

What is the term used to describe the economic interdependence of countries?

  1. Globalization

  2. Isolationism

  3. Protectionism

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

Globalization refers to the economic interdependence of countries, characterized by increased trade, investment, and cultural exchange.

Multiple choice

What is the term used to describe government policies that restrict international trade?

  1. Globalization

  2. Isolationism

  3. Protectionism

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

Protectionism refers to government policies that restrict international trade, such as tariffs, quotas, and subsidies, in order to protect domestic industries.

Multiple choice

Which international agreement aims to promote cooperation on trade and economic issues among Asia-Pacific countries?

  1. World Trade Organization (WTO)

  2. United Nations (UN)

  3. Asia-Pacific Economic Cooperation (APEC)

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

The Asia-Pacific Economic Cooperation (APEC) is an international agreement that aims to promote cooperation on trade and economic issues among Asia-Pacific countries.

Multiple choice

What is the term for the use of economic measures to influence a country's behavior?

  1. Embargo

  2. Sanctions

  3. Tariffs

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

Sanctions involve economic measures, such as trade restrictions or asset freezes, imposed on a country to pressure it to change its policies or actions.

Multiple choice

What is the handle of the WTO's official Twitter account?

  1. @WTO

  2. @WorldTradeOrg

  3. @WTO_org

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

The handle of the WTO's official Twitter account is @WTO.