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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