1) Export of surplus production
2) Import of defence material
3) Dependence on foreign countries
4) Availability of cheap raw materials
5) None of these
Answer-3
Q2. The term "Net exports" equals to:
1) Exports x Imports
2) Exports + Imports
3) Exports - Imports
4) Exports of services only
5) Exports / Imports
Answer-3
Q3. The term 'Dumping' means:
1) Buying goods at low prices abroad and selling at higher prices locally
2) Expensive goods selling for low prices
3) Reducing tariffs
4) Sale of goods abroad at a lower price, below their cost and price in home market
5) Increasing Tariffs.
Answer-4
Q4. What is the root cause of difference in International trade and domestic trade?
1) Trade restrictions
2) Immobility of factors
3) Different government policies
4) All of the above
5) None of these
Answer-4
Q5. A situation in a free trade world where no restrictions exist, international trade will lead to:
1) Reduced real living standard
2) Decreased efficiency
3) Increased efficiency
4) Reduced real GDP
5) Scarcity of resources
Answer-3
Q6. The Govt. policy regarding exports and imports is called as:
1) Monetary policy
2) Fiscal policy
3) Commercial policy
4) Finance policy
5) Foreign Policy
Answer-3
Q7. In foreign trade, the term Protection policy means:
1) Restrictions on exports
2) Restriction on transfer of foreign exchange
3) Restrictions on imports
4) All of the above
5) None of these
Answer-3
Q8. The theory explaining trade between two countries is called:
1) Comparative Advantage
2) Comparative Bargain
3) Comparative Trade
4) Comparative Returns
5) Comparative Business
Answer-1
Q9. Balance of payments refers to:
1) The balance of receipts and payments of all banks
2) The balance of receipts and payments of State Bank
3) The balance of receipts and payments of foreign exchange by a country
4) The balance of govt. receipts and payments
5) None of these
Answer-3
Q10. Since 2005, custom duties have been reduced because of international agreement under:
1) WTO
2) IMF
3) World Bank
4) 1 and 2
5) 1 and 3
Answer-1
