CSS :: International and National Trade

11.  Dumping refers to:
A. Buying goods at low prices abroad and selling at higher prices locally B. Expensive goods selling for low prices
C. Reducing tariffs D. Sale of goods abroad at low a price, below their cost and price in home market

12.  According to Hecksher and Ohlin basic cause of international trade is:
A. Difference in factor endowments B. Difference in markets
C. Difference in political systems D. Difference in ideology

13.  All are advantages of foreign trade EXCEPT:
A. People get foreign exchange B. Nations compete
C. Cheaper goods D. Optimum utilisation of country's resources

14.  Two countries can gain from foreign trade if:
A. Cost ratios are different B. Tariff rates are different
C. Price ratios are different D. (a) and (c) of above

15.  International trade and domestic trade differ because of:
A. Trade restrictions B. Immobility of factors
C. Different government policies D. All of the above

16.  Terms of trade of developing countries are generally unfavourable because:
A. They export primary goods B. They import value added goods
C. They export few goods D. (a) and (b) of above

17.  Term of trade of a country show:
A. Ratio of goods exported and imported B. Ratio of import duties
C. Ratio of prices of exports and imports D. (a) and (c) of above

18.  In a free trade world in which no restrictions exist, international trade will lead to:
A. Reduced real living standard B. Decreased efficiency
C. Increased efficiency D. Reduced real GDP

19.  Govt. policy about exports and imports is called:
A. Monetary policy B. Fiscal policy
C. Commercial policy D. Finance policy

20.  What would encourage trade between two countries:
A. Different tax system B. Frontier checks
C. National currencies D. Reduced tariffs

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