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

SAFTA refers to

  1. South Asian free Trade Area

  2. South American foreign trade area

  3. South Atlantic free trade area

  4. South African foreign trade area
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

SAFTA (South Asian Free Trade Area) is a regional trade agreement among SAARC nations to promote trade liberalization in South Asia. It came into effect in 2006 and includes India, Pakistan, Bangladesh, Sri Lanka, and other South Asian countries. The other options incorrectly reference different geographic regions.

Multiple choice

Which of the following is correct about corn laws?

  1. They prohibited export of corn grown in Britain.

  2. They restricted import of corn in Britain.

  3. They prohibited growing corn in Britain.

  4. They restricted sale of corn to only the upper classes.

  5. They established high taxes for corn grown in Britain.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

This is the correct answer as the food grain prices had gone up and landed groups pressurised the government to prohibit the import of corn into Britain.

Multiple choice

Britain’s trade surplus in India helped pay the ‘home charges’. Which of the following is not included in 'home charges'?

  1. Private remittances home by British officials

  2. Private remittances home by British traders

  3. Interest payments on India’s external debt

  4. Pensions of British officials in India

  5. Interest payments on India’s trade deficit
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

No, as India's trade deficit was paid through the 'home charges'.

Multiple choice

Directions: Choose the correct option for the given question.

MRTP is related to

  1. monopoly and trade restrictions

  2. inflation control

  3. transport control

  4. foreign exchange regulations
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

MRTP stands for Monopolies and Restrictive Trade Practices Act, which was enacted to prevent monopolistic and unfair trade practices in India. The act specifically targets monopoly situations and restrictive trade practices that harm consumer interests. Option A directly states this relationship, making it the correct choice.

Multiple choice

The term TRIPS and TRIMS are related to

  1. NAFTA

  2. SAPTA

  3. LFTA

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

TRIPS (Trade-Related Aspects of Intellectual Property Rights) and TRIMS (Trade-Related Investment Measures) are both agreements administered by the World Trade Organization (WTO). They establish international standards for intellectual property protection and regulate investment measures that affect trade, respectively.

Multiple choice

ECOMARC is a symbol related to

  1. export of goods

  2. import of goods

  3. goods safe for environment

  4. best quality goods
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

ECOMARC is an eco-label certification mark used in India to indicate that goods are environmentally friendly and safe for the environment. It certifies products that meet specific environmental standards throughout their lifecycle.

Multiple choice

Visible and Invisible items of debit and credit are the part of

  1. Import-export Policy

  2. Balance of Payment

  3. Balance of Trade

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

Balance of Payment (BoP) includes both visible items (trade in goods like imports and exports) and invisible items (services, transfers, investment income). Balance of Trade only covers visible merchandise trade, while Import-export Policy and Annual Budget are regulatory frameworks, not accounting records.

Multiple choice

MRTP is related to :

  1. Foreign Exchange Regulation

  2. Transport control

  3. Inflation control

  4. Monopoly and Trade Restriction
Reveal answer Fill a bubble to check yourself
B Correct answer
Multiple choice

Maximum goods are exported from India to

  1. EEC

  2. SAFTA

  3. OPEC

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

The European Economic Community (EEC), now part of the European Union, has historically been one of India's largest trading partners for exports. India exports significant quantities of textiles, chemicals, pharmaceuticals, and agricultural products to European countries. The EEC market absorbs more Indian goods than SAARC countries, OPEC nations, or most other regional groupings due to its large market and trade agreements.