Tag: nature and scope of foreign trade

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Questions Related to nature and scope of foreign trade

Multiple choice commerce nature and scope of foreign trade characteristics, necessity, importance, advantages and disadvantages of foreign trade importance, scope and benefits of international trade trading and economic organisations

Which of the following conveys the difficulty of diversity of language in international trade? 

  1. Different languages are spoken and written in different countries of the world.

  2. All correspondence has to be done in foreign language.

  3. Price lists and catalogues are prepared in foreign languages.

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

Trade requires communication, which can give rise to language barriers. Language-intensive tasks that are essential to trade include researching foreign markets, adapting and marketing products to foreign consumers, and communication and contracting between importing and exporting firms.

Multiple choice commerce nature and scope of foreign trade characteristics, necessity, importance, advantages and disadvantages of foreign trade importance, scope and benefits of international trade trading and economic organisations

________ is/are the business regulation(s) and policy(ies) which differentiate(s) internal trade with external trade.

  1. Tariff and taxation

  2. Import quota system

  3. Subsidies

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

Internal trade is generally free from the complex regulations, tariffs, and quotas that govern external (international) trade. All listed items are standard tools used to regulate international trade.

Multiple choice commerce nature and scope of foreign trade characteristics, necessity, importance, advantages and disadvantages of foreign trade importance, scope and benefits of international trade trading and economic organisations

Which of the following is/are the characteristic(s) of international trade?

  1. Territorial specialization

  2. Separation of sellers from buyers

  3. Mutually acceptable currency

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

International trade is lower costs to consumers. The lower cost is the result of two factors. First, companies can produce items overseas, saving money on labor and material costs.

Multiple choice commerce nature and scope of foreign trade characteristics, necessity, importance, advantages and disadvantages of foreign trade importance, scope and benefits of international trade trading and economic organisations

The Principal instrument of inward-oriented trade policy is __________.

  1. Non Protection

  2. Protection

  3. Tariff

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

Inward-oriented trade policy, also known as import substitution, relies on protecting domestic industries from foreign competition through various measures.

Multiple choice commerce nature and scope of foreign trade characteristics, necessity, importance, advantages and disadvantages of foreign trade importance, scope and benefits of international trade trading and economic organisations

The Unified Exchange Rate System was introduced in _______.

  1. 1990

  2. 1991

  3. 1993

  4. 1996
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Unified Exchange Rate System was introduced in India in 1993 as part of the transition to a market-determined exchange rate regime.

Multiple choice commerce nature and scope of foreign trade characteristics, necessity, importance, advantages and disadvantages of foreign trade importance, scope and benefits of international trade trading and economic organisations

The Dual Exchange Rate System was replaced by ___________.

  1. Exim Scrips

  2. EPCG licenses

  3. LERM

  4. Unified Exchange Rate System
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Dual Exchange Rate System, which had a partial convertibility of the rupee, was replaced by the Unified Exchange Rate System in 1993.

Multiple choice commerce nature and scope of foreign trade characteristics, necessity, importance, advantages and disadvantages of foreign trade importance, scope and benefits of international trade trading and economic organisations

The Exim Policy for 1997-2000 was effective on ________.

  1. 1st May, 1996

  2. 1st April, 1997

  3. 26th June, 1996

  4. 26th June, 1997
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Exim Policy for 1997-2000 was officially launched and became effective on April 1, 1997.

Multiple choice commerce nature and scope of foreign trade characteristics, necessity, importance, advantages and disadvantages of foreign trade importance, scope and benefits of international trade trading and economic organisations

The inward-oriented trade policy is also known as _____________.

  1. Export promotion strategy

  2. Import substitution strategy

  3. LPG

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

Inward-oriented trade policy focuses on producing goods domestically that were previously imported, hence the term import substitution strategy.

Multiple choice commerce nature and scope of foreign trade characteristics, necessity, importance, advantages and disadvantages of foreign trade importance, scope and benefits of international trade trading and economic organisations

Export promotion was a key element of the foreign trade strategy during the _______.

  1. seventh Five Year Plan

  2. eighth Five Year Plan

  3. nineth Five Year Plan

  4. tenth Five Year Plan
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Export promotion became a significant focus of India's foreign trade strategy during the Eighth Five Year Plan (1992-1997).

Multiple choice commerce nature and scope of foreign trade characteristics, necessity, importance, advantages and disadvantages of foreign trade importance, scope and benefits of international trade trading and economic organisations

The important components of foreign trade of a country are _________.

  1. terms of trade, balance of trade and balance of payment

  2. the volume of trade, the composition of trade and the direction of trade

  3. terms of trade and the volume of trade

  4. terms of trade and the direction of trade
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The three fundamental components used to analyze a country's foreign trade are the volume (how much), the composition (what goods), and the direction (to/from whom).