International trade

International Trade

International trade means the exchange of goods and materials or services among different countries across national boundaries. From the beginning of our civilization the system of international trade gradually changed. Due to the development of skill or technologies the extension of international trade also spread all over the world.

International Trade

The initial trade was barter system , where goods are exchanged. But, gradually it changes to the use of different currencies.

  1. What is the full form of OPEC?
    Answer: Organization of Petroleum exporting countries.
  2. Name the service land in and around the port.
    Answer: Hinterland.
  3. Name the types of trade between the countries?
    Answer: Bilateral.
  4. Name the International Organization dealing with Global rules of trade between Nations.
    Answer: WTO.
  5. What do you mean by balance of trade?
    Answer: Difference between export and import.
  6. Define the term Hinterland.
    Answer: Survival land in and around port.
  7. What is dumping?
    Answer: Excess producing countries forcing the underdeveloped countries to buy the products with the fixed price (no liberalization).
  8. Define Slave trade.
    Answer: European countries like Netherlands, Italy etc done selling of human beings called slave trade.
  9. Categorize international trade into two types.
    Answer: Bilateral and multilateral.
  10. Name the type of most of the great ports belong to….
    Answer: comprehensive ports.
  11. Name the important entreport of Asia.
    Answer: Singapore.
  12. Which Association is the largest single market in the world?
    Answer: European Union (EU).
  13. The GATT (General Agreement on Trade and Tariff) formed in 1948.
  14. The GATT was transformed in to WTO (World Trade Organization) on 01.01.1995.
  15. ASEAN (Association of South East Asian Nations) was formed in August, 1967.
  16. Head quarter of ASEAN in Jakarta, Indonesia.

  17. Brunei, Indonesia, Malaysia, Singapore, Thailand and Vietnam – member nations of ASEAN.
  18. NAFTA (North American Free Trade) formed in 1994.
  19. USA, Canada and Mexico – member nations of NAFTA.
  20. SAFTA (South Asian Free Trade Agreement) formed in Jan, 2006.
  21. OPEC (Organization of Petroleum Exporting Countries) formed in 1949.
  22. Full form of OAPEC is Organization of Arabian Petroleum exporting Countries.
  23. Head quarter of OPEC in Vienna, Austria.
  24. Comprehensive port means – ports handle bulk and general cargo in large volumes.
  25. Entrepot Ports means – where the goods are brought from different countries for export. Like Singapore is an entrepot of Asia and Rotterdam for Europe and Copenhagen for the Baltic region.
  26. Koch and Karwar are examples of Naval ports in India.

The International Trade

1. Which of the following point clearly depict the meaning of Trade? (The International Trade)
a. Exchange of commodities
b. Voluntary exchange of commodities and services
c. Commutation of commodities and services
d. Forceful job done by traders imposed by government
Ans. (b)
2. Which of the following factor is responsible for the establishment of trade relations among the different nations?
a. For the commodities those they cannot produce by themselves
b. For the commodities those they can buy comparatively at cheaper rates
c. Both (a) and (b) are correct
d. Both (a) and (b) are incorrect
Ans. (c)

3. Barter system is still alive in which of the following fair in India?

a. Jonbeel Fair
b. Kumbha fair
c.Pushkar fair
d. Nauchandi Fair
Ans. (a)
4. Which of the following is an example of modern metal currency?
a. Silver coin
b. Obisidian
c. Gold coin
d. Coin of 10
Ans. (d)
5. Silk route, that is the primitive example of long route connect which of the following Countries?
a. China and Italy
b. China and Rome
c. China and Central Asia
d. China and Greece
Ans. (b)

5. Which of the following factor was responsible for flourishing trade between Europe and Asia In 12 and 13 Century?

a. Disintegration of Roman empire
b. Development of large navigational ships
c. Favorable climate
d. Both (a) and (b)
Ans. (d)
7. Which of the following trade came into existence in 15 Century AD with the beginning of European imperialism?
a. Slave Trade
b. Silk trade
c. Trade of raw material only
d. Trade of finished products
Ans. (a)
8. On which of the following factors international trade depend?
a. Variation in human resource
b. Specialization in production
c. Availability of mineral resources
d. All of the above
Ans. (b)

9. Which of the following factor is most required for participating in international trade by a nation?

a. Efficient transport and communication system
b. Production of various commodities
c. Well developed network of industries
d. Educated human resources
Ans. (a)
10. Which of the following factor creates diversity among the national resources?
a. Physical configuration
b. Relief and soil
c. Variations found in climate
d. All of the above
Ans. (d)
11. Which of the following pair is not matched correctly?
a. China Porcelain and Brocade
b. Iran Software technology
c. Northern America Leather work
d. Indonesia Batik clothes
Ans. (b)

12. Consider and evaluate the following statements and choose the correct answer with the help of given options.

I. Densely populated countries have large volume of internal trade but little external trade
II. Most of the agricultural and industrial production of these countries consumed in the local Market due to large size of population.
a. Only statement II is correct
b. Both the statements I and II are correct but statement II does not explain statement I correctly
c. Both the statements are true and statement II correctly explains statement I
d. Both the statements are incorrect
Ans. (c)
13. Which of the following is the chief characteristics of industrialized nation in terms of trade?
a. They export mainly machinery and finished products
b. They exchanged agro products for manufactured goods from the agriculturally important countries
c. They import food grains and other raw materials
d. Only (a) and (b)
Ans. (d)

14. Which of the following commodity was not traded for a long distance due to inefficient mode of transport during ancient time?

a. Gems
b. Silk
c. Grains
d. Spices
Ans. (c)
15. Which of the following point correctly depict the ‘volume of trade’?
a. The total value of the goods and services traded
b. The total tonnage of traded commodities
c. It is the form of values of services that are traded
d. None of the above
16. Which of the following changes are reflecting in the pattern of international trade?
a. Contribution of Europe is decreasing
b. Contribution of Asian countries is increasing
c. Australia is emerging as a pioneer continent in terms of international trade
d. Only (a) and (b)
Ans. (d)

17. Which of the following statement is true in reference of trade balance?

a. If import value exceeds export value than trade balance of a country is negative or unfavorable
b. If export value is comparatively more than import value than countries balance of trade will be observed as favorable or positive
c. Negative balance of trade would ultimately lead to exhaustion of its financial reserves
d. All of the above
Ans. (d)
18. Which of the following country has lost the status of ‘Most favored nation’ by India Recently?
a. Pakistan
b. China
c.Great Britain
d. United States of America
Ans. (a)

19. Which of the following point clearly explains the status of ‘Free trade’?

a. Bringing down trade barriers like tariffs
b. Trade liberalization allows goods and services from everywhere to compete with domestic products and services
c. Let free trade to be limited to developed countries only
d. Only (a) and (b)
Ans. (d)
20. To fulfill which of the following aim, the General Agreement on Trade and Tariff was transformed in to World Trade Organisation (WTO)?
a. For the promotion of free and fair trade amongst nation
b. To increase more trade and commerce for the developed countries
c. To create competitive feelings amongst developed and developing countries
d. All of the above
Ans. (a)

21. In which of the following year the General Agreement on Trade and Tariff was transformed in WTO?

a. June 1995
b. January 1995
c. January 1996
d. December 1995
Ans. (b)
22. Which of the following issue is concerned with World Trade Organisation (WTO)?
a. Sets the rules for global trading and resolves disputes between its member nation
b. It covers trade in services such as telecommunication and services
c. It also covers trade in other issues such as intellectual rights
d. All of the above
Ans. (d)

23. Consider the following statements and choose the correct option from the given options

I. The WTO however been criticized and opposed by those who are worried about the effects of Free trade and economic globalization
II. Free trade does not make ordinary people’s lives more prosperous
a. Only statement I is correct
b. Both the statements are true and statement II correctly present the reason for statement I
c. Only Statement II is correct
d. Both the statements I and II are incorrect
Ans. (b)
24. Which of the following aim encouraged the Regional Trade Blocs to came in to existence?
a. To encourage trade between the countries with geographical proximity, similarity and complementary in trading items
b. To curb restrictions on trade of the developing world
c. To speed up intra-regional trade
d. All of the above
Ans. (d)

25. Consider the following and choose the correct answer with the help of given odes REGIONAL BLOCS HEADQUARTERS

I. ASEAN 1. Minsk, Belarus
II. C.I.S. 2. Brussels, Belgium
III. E. U. (European Union) 3. Jakarta, Indonesia
IV. OPEC 4. Vienna
a. 1 2 3 4
b. 4 3 2 1
c. 3 2 1 4
d. 1 4 3 2
Ans. (c)
26. Which of the following criterion is observed to judged the importance of a port?
a. The size of cargo and the number of ships handled
b. The size of port and its form
c. Maintenance and facilities of port
d. All of the above
Ans. (a)

27. Consider the following and choose the correct answer with the help of given options.

I. Industrial Ports 1. Ports of strategic importance
II. Commercial Ports 2. Located away from the sea coast
III. Comprehensive Ports 3. Handle manufactured good
IV. Inland Ports 4. Handle bulk and general cargo in large volume
V. Naval Ports 5. Specialize in bulk cargo
VI. Packet Station 6. Transportation of passengers and mail across
water bodies covering short distances
a. 1 2 3 4 5 6
b. 5 3 4 2 1 6
c. 6 4 3 2 1 5
d. 4 5 3 2 1 6
Ans. (b)

28. Which of the following port is main entrecote port for Asia?

a. Singapore
b. Colombo
c. Mumbai
d. Colon
Ans. (a)
29. Which of the following pair is not matched correctly?
a. Venezuela Maracaibo
b. Tunisia Esskhira
c. Lebonan Tripoli
d. India Vishakhapatnam
Ans. (d)
30. Which of the following posses a good example of naval port?
a. English Channel b. Karwar
c. Roterdom d. Honolulu
Ans. (b)

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