CSS :: International and National Trade
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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 |
Answer: Option D
Explanation:
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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 |
Answer: Option A
Explanation:
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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 |
Answer: Option A
Explanation:
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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 |
Answer: Option D
Explanation:
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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 |
Answer: Option D
Explanation:
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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 |
Answer: Option D
Explanation:
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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 |
Answer: Option C
Explanation:
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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 |
Answer: Option C
Explanation:
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19. |
Govt. policy about exports and imports is called: |
A. |
Monetary policy |
B. |
Fiscal policy |
C. |
Commercial policy |
D. |
Finance policy |
Answer: Option C
Explanation:
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20. |
What would encourage trade between two countries: |
A. |
Different tax system |
B. |
Frontier checks |
C. |
National currencies |
D. |
Reduced tariffs |
Answer: Option D
Explanation:
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