Tag: importance, scope and benefits of international trade

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Questions Related to importance, scope and benefits of 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

Foreign trade involves much greater risk than home trade.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
  • 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.
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

Excessive exports may exhaust the natural resources of a country in a shorter span of time.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Those exports bring money into the country, which increases the exporting nation's GDP. When a country imports goods, it buys them from foreign producers. The money spent on imports leaves the economy, and that decreases the importing nation's GDP. Net exports can be either positive or negative.

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

Reliance of underdeveloped countries to the developed ones for their economic development may lead to __________.

  1. economic exploitation

  2. economic independence

  3. political independence

  4. mis-utilization of natural resources
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Economic theories exploitation is defined by the unequal marginal productivity of workers and wages, such that wages are lower. Exploitation is sometimes viewed to occur when a necessary agent of production receives less wages than its marginal product.

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

Dollar and pound sterling are the commonly preferred currencies for international trade.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

U.S. Dollar Is the Global Currency. A global currency is one that is accepted for trade throughout the world. Some of the world's currencies are accepted for most international transactions. The most popular are the U.S. dollar, the euro, and the yen.

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

Example of external trade is _______.

  1. goods produced in India and sold in Australia

  2. goods produced in India and sold in India

  3. goods produced in Australia and sold in India

  4. A and C
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

External trade is exchange of capital, goods, and services across international borders or territories. In most countries, it represents a significant share of gross domestic product (GDP).

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

Internal trade differs from external trade in which of the following ways?

  1. Nationality of buyers and sellers

  2. Political system and risks

  3. Mobility of factors of production

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

Trade is the central activity in the economy. Trade not only refers to the exchange of goods and services within the country but also between two or more countries.Internal trade refers to the trade within the borders of the country. External Trade refers to the trade between two or more countries.

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 of 1992-97 was announced in ____________.

  1. March 1991

  2. March 1992

  3. April 1991

  4. April 1992
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Export-Import (Exim) Policy of 1992-97 was a significant reform announced in March 1992 to liberalize India's 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

The International Development Association (IDA) was established in _______________.

  1. 1944

  2. 1947

  3. 1960

  4. 1965
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The International Development Association (IDA) is a member of the World Bank Group and was established in 1960 to provide loans and grants to the world's poorest developing countries.

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

Avon/Oriflame/Tupper ware/Amway are examples of ________.

  1. franchising

  2. BPO

  3. KPO

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

Avon, Oriflame, Tupperware, Amway are examples of network marketing as these firms mainly target their customers for the direct marketing purposes creating a network of customers who market these products.

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

It is difficult to obtain reliable information concerning the financial position and business standing of the foreign traders. Therefore, ____ risk is high.

  1. political

  2. insurance

  3. credit

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

Lenders, investors, and vendors often require a Certificate of Good Standing before doing business with any company.A Certificate of Good Standing is a document provided by a state's business entity filing office (often called the Secretary of State) where you formed your company (the formation state).