Tag: nature and scope of foreign trade

Questions Related to nature and scope of foreign trade

Initial Investment leads to a large increase in income and expenditure, due to ___________.

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

  1. fiscal deficit

  2. multiplier effect

  3. giffen effect

  4. veblen effect

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Correct Option: B

Forwarding agents acting on behalf of exporters and Clearing agents act on behalf of the importer in completing the formalities of international trade.

business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

  1. True

  2. False

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Correct Option: A

Middlemen assisting in international trade include(s) which of the following?

business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

  1. Export agents

  2. Forwarding agent

  3. Import agent

  4. All of the above

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Correct Option: D

Under ____ price quotation, the importer has to pay the insurance charges.

business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

  1. Cost and freight

  2. Franco

  3. Free alongside ship

  4. Loco

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Correct Option: A

In ________, a firm itself approaches the overseas buyers/ suppliers and looks after all the formalities related to exporting/importing activities.

business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

  1. direct exporting/importing

  2. indirect exporting/importing

  3. contract manufacturing

  4. none of the above

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Correct Option: A
Explanation:

A situation in which a company sells its products directly to customers in another country without using another person or organisation to make arrangements for them, or a product that is sold in this way: The direct export of goods involves certain procedures.

______ is used to establish the origin of the product and is issued by the Chamber of Commerce of the Exporters country.

business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

  1. Certificate of Origin

  2. Bill of exchange

  3. Bill of Lading

  4. Airway bill

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Correct Option: A
Explanation:


Description

A certificate of origin is a document used in international trade. In a printed form or as an electronic document, it is completed by the exporter and certified by a recognized issuing body, attesting that the goods in a particular export shipment have been produced, manufactured or processed in a particular country.

Identify the limitation(s) of importing/ exporting form of international business.

business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

  1. Exporting/importing involves additional packaging, transportation and insurance costs.

  2. Exporting is not a feasible option when import restrictions exist in a foreign country.

  3. Export firms basically operate from their home country.

  4. All of the above

Show answer
Correct Option: D
Explanation:
 Disadvantages 
  • Economic dependence: Too much dependence on imports may undermine the economy of a country.
  • Restricted growth of home industries: Foreign trade may discourage the growth of domestic industries.
  • Misuse of natural resources.
  • Political exploitation.
  • Import of harmful goods.
  • Rivalry among nations.
  • Invasion of culture.

Exposure to foreign investment risks is nil or much lower in foreign trade. This is because of which of the following advantages of exporting/importing?

business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

  1. It is less complex an activity.

  2. Exporting/importing does not require much of investment in foreign countries.

  3. Firms do not directly deal with overseas customers.

  4. All of the above

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Correct Option: B
Explanation:

Foreign investments add diversity but there are risks. Investing in foreign countries is a relatively new option for individual investors. Luckily, the advent of internationally focused mutual funds and exchange-traded funds (ETFs) has made it easier.

Exporting refers to sending goods from domestic country to foreign country.

business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

  1. True

  2. False

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Correct Option: A
Explanation:

Exporting means to send the goods in the international markets from the domestic country, where the goods have been produced to the foreign country where it is demanded.

Under the chairmanship of V.L.D'Souza, the Export Promotion Committee was setup in the year ________________.

business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

  1. 1957

  2. 1962

  3. 1964

  4. 1966

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Correct Option: A
Explanation:

The goverment of India appointed another committee in 1957 under the chairmanship of V.L. D'souza to make a comprenshive study of all aspects of trade promotion.