InternationTradeTheory and Policy

Sem – IIl M.A Eco

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1) What are the reasons for international trade in industry?

A) Supply barriers b) Non-tariff barriers

c) Tariff d) Quantitative compatibility

2) The benefits of international trade can be divided into the following two types?

A) Benefits of production and technological advancement.

B) Benefits in the form of goods and benefits in the form of money.

C) Benefits in Renewal and Benefits in Specialization.

D) Gain in price and gain in income

3) When was the WTO established?

A) January 1, 1985 b) January 7, 1990

c) 1 January 1995 d) 3 January 1997

4) Which of the following affects international trade?

A) Investment and employment b) Production and savings

C) Price level d) All of the above

5) On what principles is international trade based?

A) Division of labor b) Specialization

C) Both of the above are correct d) Both the options are wrong

6) Which of the following economists has proposed the theory of comparative cost benefit?

A) Andam Smith b) Hexcher Ohlin c) David Ricardo d) Lancaster

7) Who developed the theory of international trade based on absolute difference?

A) Adam Smith b) David Ricardo c) Hexcher d) None of the above

8) Ricardo proposed the pure theory of international trade which of the following?

A) ‘The principles of political economy and taxation’

B) ‘principles of political economy’

C) Both ‘A’ and ‘B’ options are correct

D) Both ‘A’ and ‘B’ options are wrong

9) Where is the headquarters of WTO?

A) USA b) Singapore c) Indonesia d) Geneva in Switzerland

10) When the value of your country's currency is increased compared to the currency of another country, it is
called .............................

A) Overvalue b) Depreciation c) Exchange d) Depreciation

11) Goods in another country are moving from our country to a third country. The charges levied on such items
are .......................... Yes.

A) Import duty b) Export duty c) Transition fee d) Value based duty

12) Selling those goods abroad at a price lower than the price of domestic goods is called ..........

A) Depravity b) Adverse depravity c) Rare depravity d) Chronic depravity

13) Who used the concept of "net commodity transaction"?

A) Frank William Hansing b) Darrence c) Kernel d) Ellsworth

14) Oholin's theory does not explain what hypothetical function of international trade theory?

A) Full competition b) Full employment

C) Full competition and full employment d) Mobility of production components

15) Helver-Oholin's modern theory of international trade is based on ..................

A) Partial equilibrium b) Universal equilibrium

c) Market equilibrium d) Labor market equilibrium

16) Gant's head office is at .......................

A) Geneva b) France c) Italy d) Germany

17) ASEAN is headquartered at .......................

A) Jakati b) Bangkok c) Singapore d) Germany

18) ‘Quota’ is a form of bondage.

A) Excise b) Non-excise duty c) Customs d) Excise duty

19) Which country took the initiative in establishing SAARC?

A) Pakistan b) Sri Lanka c) India d) Nepal

20) In which year was the SAPTA agreement signed?

A) 1994 b) 1995 c) 1996 d) 1980

21) In which year was the GATT agreement established?

A) 1947 b) 1957 c) 1967 d) 1991

22) International Trade Policy in general .........................

A) Emphasizes on reducing imports. b) Emphasizes export growth

c) Focuses on low imports and high export growth. d) Emphasizes trade balance

23) Free Trade Area means ................. Yes.

A) SAPTA b) ASEAN c) SAFTA d) ‘A’ and ‘B’

24) Which of the following is not a multinational company?

A) MTNL b) L. G c) Sony d) WALMART

25) Who laid down the law of mutual demand?

A) Keynes b) Adam Smith c) Ohlin d) J.S. Mill

26) Who proposed the cost theory of international trade?

 A) Housing b) JS Mill c) Recordo d) Humbler

27) Hector Ohlin's theory states that the difference in component prices due to trade .............

A) increasing b) decreasing c) remains constant d) increasing or decreasing

28) Ohlin's theory of international trade is known as .......................

A) Labor theory b) Opportunity cost theory

c) Comparative cost theory d) Component donation theory

29) In international trade ....................... is currency.

A) Different b) Single c) Same d) None of the above

30) What have all the nations of the world created?

A) International Monetary Fund b) World Bank c) Internal Bank d) Asia Bank

31) What happens at a fixed exchange rate?

A) Trade b) Money laundering c) Betting d) International trade

32) What is the balance of international transactions in India in the era of economic reforms?

A) Adversity b) Favorable c) Balanced d) Fickle

33) Which of the following countries is not included in NAFTA?

A) Argentina b) USA c) Mexico d) Canada

34) Who has supported the free trade policy?

A) Mill b) J.B.S. c) Adam Smith d) None of the above

35) Who has stated the need for a different theory of international trade?

A) Ohlin b) Conservative economist c) Hexer d) All of the above

36) Ohlina's theory of international trade relates to which of the following theories?

A) Opportunity cost theory b) Labor value theory

c) Non-existent value theory d) General value theory

37) Who proposed the 'Hyashakti Samata Siddhanta' regarding exchange rate determination?

A) Justav Castle b) PTlsworth c) Janes Ingram d) Walter Haas

38) Where is the headquarters of IMF located?

A) Washington b) New York c) Hampshire d) London

39) How many countries are permanent members of SAARC?

A) 10 b) 12 c) 7 d) 9

40) Which of the following is the function of IMF?

A) Maintaining exchange rate stability. B) Avoid competitive fall in exchange rates.

C) Reducing restrictions on foreign exchange. D) All of the above

41) What is Bretton Woods method?

A) Changing exchange methods b) Gold exchange methods

C) Both ‘A’ and ‘B’ d) None of the above

42) Where is the office of ADB?

A) Sharjah b) Manilak c) Kuwait d) Bahrain

43) Which countries established the European Economic Community (EEC)?

A) Belgium, France b) Germany, Italy c) Luxembourg, Leatherland d) All of the above

44) What is the exchange rate fixed for buying and selling foreign currency in a short period of time?

A) Attendance rate b) Deadline rate c) Future rate d) All of the above

45) Indian Rupee __________________

A) Variable on current account, but not on capital account.

 B) Variable on any account.

C) Capital is convertible on account, but not on current account.

D) Variable on both current and capital accounts.

46) What was the plan to keep the major currencies floating normally?

A) 1973 b) 1987 a) 1993 d) 1927

47) Can trade between two countries occur for the following reasons?

A) Preferences b) Technology c) Component donation d) None of these

48) Which of the following is not related to international trade?

A) Sales buying b) Shadow price c) ‘A’ and ‘B’ right d) None right

49) Euro-currency market is the currency market of which debt?

A) Short term b) Long term c) Long term d) Very short term

50) What is the exchange of debt in Euro-currency market?

A) US dollar b) British pound c) ‘a’ and ‘b’ d) none of the above

51) Which currencies are traded in Euro-Currency market?

A) US Dollars b) British Pounds c) Euro France d) All of the above

52) When did the euro-currency market develop faster?

A) 1950 b) 1967 c) 1970 d) 1965

53) What are the major members of SAARC?

A) Industrial b) Agriculture c) ‘A’ and ‘B’ d) None of the above

54) How many working committees has been set up by SAARC?

A) 11 b) 14 c) 10 d) 15
55) Who gives permission to take measures against ping?

A) Gant will give to its member nations b) W.T.O c) SAARC d) None of the above

56. Which international organizations help nations to expand and develop trade by removing barriers to international
trade?

A) IMF b) World Bank c) Uncted, EEC d) All of the above

57) What method has Humberler used to explain the concept of alternative justice?

A) Equilibrium curve b) Product potential curve c) Utilization curve d) Investment curve

58) What are the following types of imbalances in research?

A) Chahiya imbalance b) Long term imbalance

C) Structural imbalance d) All of the above

59. What is the basis of international economic relations?

A) internal b) external c) internal and external d) none of the above

60) Foreign trade is ...................... exchange.

A) Monetary b) Commodities c) Different from ‘a’ and ‘b’ d) None of the above

61. Although international trade is different from domestic trade, it is found in some cases.

A) Similarities b) Differences c) Similarities d) All of the above

62) What is the dynamics of production factors in internal trade?

A) more b) less c) very little d) all of the above

63) Depreciation is an important remedy against what?

A) Boom b) Recession c) Both options are correct d) Both options are wrong

64) How are imports from abroad due to devaluation?

A) Cheap b) Expensive c) Increases d) Decreases

65) What kind of trade agreement does the WTO provide?

A) Multilateral b) Bilateral c) Different from ‘a’ and ‘b’ d) None of the above

66) Which of the following is not a trade policy tool?

a) Customs b) Corporation Income-tax c) Export-financed d) Anti-value added duty

67) The combination of production components is as follows?

A) Changing b) Stable c) Vassman d) All of the above

68) Does the cost of transportation affect the prices of goods and therefore international trade?

A) Expanded b) Compressed c) Same d) Absolute

69. Who expressed the view that international trade has become a special form of international trade?

A) Ohlin b) Hector c) Humbleral d) Mill

70) The end of research is always there.

A) Balanced b) Unbalanced c) ‘A’ and ‘B’ d) None of the above

71) Which board has been appointed to oversee the management of the World Bank?

A) Prime Minister b) Board of Directors c) Governor d) Relief Committee

72) When was the Fera Act enacted in India?

A) 1985 b) 1984 c) 1981 d) 1973

73) When was the Arab Gulf Co-operation Council (AGCC) established?

A) May 1981 b) March 1980 c) June 1979 d) August 1987

74) According to Knox, what is the source of capital accumulation?

A) Favorable trade conditions b) Increasing exports c) Increasing imports d) Above all

75) Currency decreases only ______________

A) is a monetary measure b) is a monetary measure plan

C) Both ‘A’ and ‘B’ d) None of the above

76) What is the devaluation of the country's currency?

A) Non-monetary b) Monetary c) Non-monetary and monetary d) All of the above

77) Who said that ‘multinational corporations and expansion of world trade are two sides of the same coin’?

A) Peter Drucker b) Carlin c) Colin Clark d) All

78) Which of the following is the official body controlling the exchange?

A) State Bank b) Central Bank c) Merchant Bank d) All

79) Which country was the first to adopt a multi-currency exchange rate system under exchange control?

A) India b) USA c) England d) Germany

80) When does Indian rupee become more expensive than US dollar?

A) When the exchange rate is favorable in terms of Indian Rupee.

B) When the exchange rate becomes unfavorable in terms of Indian Rupee.

C) ‘A’ and ‘B’

D) different than this

81) In the theory of demand method ........................

A) The per capita income of the country increases b) The demand pattern expands

C) Production cost decreases with increase in production d) All of the above

82) Which of the following has analyzed the effects of technological change on trade?

A) Poser b) Adam Smith c) Ricardo d) Hexcher Ohlin

83) Who studied the role of manpower in international trade?

A) Canon b) Simulation c) ‘A’ and ‘B’ d) None of these

84) International specialization is beneficial because .........................

A) Different product components are required for the production of different goods.

B) Product component donations vary in different regions.

C) The mobility of production components is low internationally.

D) All of the above

85) Who controls the transactions of MNCs?

A) WTO b) World Ban c) of the International Monetary Fund d) of the Board of Directors of the Company

86) Intellectual property has to be registered with which organization?

A) FAO b) WTO c) ULO d) WHO

87) Where was the 2011 meeting of the World Trade Organization held?

A) Geneva b) India c) England d) Germany

88) Who announced the Foreign Trade Policy 2009-2014?

A) Dr. Vijay Bhatkar b) Jagdish Bhagwati c) Anand Sharma d) Srivastava

89) Christine Logart, the first lady of the International Monetary Fund, is from which country?

A) France b) Bhopal d) Chandigarh d) Delhi

90) Where was the International Co-operation Council held in 2012?

A) Gujarat b) Bhopal c) Chandigarh d) Delhi

91) What are the objectives of the new economic policy?

A) Liberalization b) Globalization c) Privatization d) All of the above

92) What is the term used for public sector export?

A) Privatization b) Liberalization c) Globalization d) All of the above

93) India's trade surplus is not favorable mainly due to import of these goods?

A) Petrol b) Mineral oil c) Petroleum substance d) Agricultural substance

94) Which committee recommended conversion of rupee?

A) Tarapur Committee b) Abhijeet Committee c) Narasimha Rao Committee d) Banchhu Committee

95) When did the Government of India first announce its policy on foreign capital investment?

a) 1950 b) 1948 c) 1952 d) 1956

96) The Industrial Policy of 1948 clarified the objective of establishing which economy for India?

a) Private b) Capitalism c) Socialist d) Mixed

97) Whose policy is monetary policy?

A) Central Government b) State Government

c) Central Bank of India d) Reserve Bank of India

98) Considering the work done by multinational companies, companies are classified into which of the following
groups?

A) Multinational service companies b) Multinational manufacturing companies

C) Multinational trading companies d) All of the above

99) What is public expenditure related to?

A) Central Government b) State Government c) Local Self Government Institutions d) All of the above

100) What is the similarity between government tax and government debt?

a) The amount of currency is the same b) The implementation is the same

c) Funds equal d) None of the above

101) It is in the form of public debt

A) internal b) external c) internal and external d) political

102) The loans raised by the government are called .........................

 A) Compulsory b) Optional c) Immoral d) Voluntary and compulsive

103) When was the Treaty of Rome made?

A) 10 April 1957 b) 25 March 1957 c) 20 January 1945 d) 2 May 1965

104) In which part of the world did the Treaty of Rome take place?

A) Eastern Europe b) Western Europe c) Africa d) Asian

105) How many countries were involved in the Treaty of Rome?

A) 10 b) 8 c) 6 d) 12

106) How many nations have signed the agreement to reduce the jakati tax by 50%?

A) 50 b) 40 c) 30 d) 45

107) What is the percentage of EEC in total world trade?

A) 75% b) 65% c) 40% d) 30%

108) What is the collective currency of EEC country?

A) Dollar b) Pound c) Rupee d) Euro

109) When was ADB established?

A) 1949 b) 1951 c) 1966 d) 1969

110) Capital formation increases ....................

A) In employment b) In income c) In energy d) In savings

111) By creating capital ........................ can be achieved.

A) Economic expansion b) Political expansion

c) Economic welfare d) Social expansion

112) What is the membership of the World Bank today?

A) 180 b) 185 c) 190 d) 195

113) The World Bank supplies ....................... to developing countries.

A) Production b) Income c) Capital d) Investment

114) The World Bank provides ................... term loans.

A) Short b) Long c) Short d) Very long

115) What is the present name of India and Kalam?

A) India Development Forum b) India Association c) India Forum d) India Developers

116) The International Monetary Fund provides .....................

A) Foreign currency b) Domestic currency c) Gold d) Dollar

117) What is the stability of the International Monetary Fund?

A) In foreign exchange rates b) In local currency

c) In internal currency rate d) In currency

118) In what form does the International Monetary Fund have to be deposited?

A) Gold b) Dollars c) Gold and dollars d) Pounds

119) When did the price of mineral oil go up so much?

A) 1972 b) 1980 c) 1970 d) 1975

120) What are the types of foreign investment?

A) Internal and external b) Public and private

c) Real and reasonable d) Real and public

121) What are the consequences of devaluation of currency?

A) The external value of the currency decreases. B) The intrinsic value of the currency decreases.
 C) The external value of the currency increases D) The internal value of the currency increases

122) Who proposed the theory of production cycle?

A) Ovalin b) Raymond Vernon c) Samuelson d) Ricardo

123) The following types of imports are required for industrialization.

A) Developmental imports b) Nutrient imports

A) Import against currency expansion d) All of the above

124) Why has SAARC decided to implement the decade 2001 to 2010?

A) For child welfare b) For environment c) For rural development d) None of the above

125) According to Graham, why complete specialization is not possible ?.

A) Flexible demand b) Countries vary in size

C) Infinite demand d) None of the above

126) What were the reasons behind the devaluation of the rupee in 1966?

A) Reduce imports b) Increase exports

c) Adjust the transaction d) All of the above

127) According to Ohlina, it occurs due to different prices of different goods in different countries.

A) International trade b) Territorial trade

C) Internal trade d) All of the above

128) In which year Heckler-Owlin proposed the theory of international trade?

A) 1930 b) 1931 c) 1933 d) 1940

129) Terms of trade are also called ................

A) Trade error b) Trade terms c) Trade d) None of the above

130) To express the value of one country's currency in another country is ................... yes.
 A) Foreign rate b) Fixed rate c) Currency rate d) Exchange rate

131) “Trade in which there is no import-export trade in any world is free or open trade

A) Prof. Lipse b) Ragner c) Pvt. Adam Smith d) Recordo

132) Who is of the opinion that ‘trade policy which does not use world-like or quota-like results is free trade if open.’

A) Adam Smith b) Ricardo c) Prof. Jagdish Bhagwati d) None of the above

133) ........................... is considered an important tool of protectionist trade policy.

A) Currency b) Value c) Excise d) None of these

134) An important way to control international trade is ................... yes.

A) Excise b) Quota c) Fee d) None of the above

135) Which of the following is a type of quota?

A) Import quota b) Export quota c) Mixed import quota d) All of the above

136) Objects are in the form of ......................

A) Visible b) Invisible c) Mixed d) Fictional

137) The import of capital across the geographical boundaries of the country is .................. Yes.

A) Domestic capital b) Foreign capital c) Alternative capital d) None of the above

138) Insurance Control and Development Board (IRDA) was established in which year?

A) 1999 b) 2001 c) 1998 d) 1997

139) When did the second phase of economic reforms in India begin?

A) 1989-1990 b) 1990-1991 c) 2000-2001 d) 2001-2002

140) The highest official of the WTO is .............. to look after the administrative work.

A) President b) Minister c) Director General d) None of the above

141) If goods and services are exchanged between individuals or organizations in different nations, then the same is
called .......................

A) International trade b) National trade

C) State trade d) None of the above

142) Who says ‘foreign trade is the engine of economic growth’?

A) Adam Smith b) Robertson c) Ohlin d) Helsher

143) Who advocated David Ricardo's theory of comparative cost-benefit?

A) Tossing b) Humbler c) Ohlin d) Only A and B

144) Who has proposed the principle of component price equalization?

A) Samuelson b) Humbler c) Helsher d) Hansing

145) Monopoly competition is the state of the market in which many products or sellers are selling alternatives to each
other.

A) Adam Smith b) Chamberlain c) Ricardo d) Edward

146) Monopoly competition is found in which of the following manufacturing sectors?

A) Radio b) TV c) Soap, cigarette d) All the above options are suitable

147) Who wrote the book 'The American capital position re-examined'?

A) Leantif b) Humbler c) Adam Smith d) Hansing

148) What are the factors that affect trade power?

A) Production cost b) Product specialization

C) Economic development d) All the above options are correct

149) What are the features of open market?

A) Natural trade b) There are no restrictions

C) Non-discriminatory policy d) All of the above

150) ‘Uruguay Council Falashruti’ means the creation of ........................

A) WHO b) WTO c) FAO d) None of the above