Trade and Commerce

1. Complete these statements. Use the given words appropriately:

a) Exports are goods that are sent outof the country

b) Imports are goods that are brought into the country

c) If the imports are higher than the exports, the difference shows the trade
deficit.

d) If the exports are higher than the imports, the difference shows the trade
surplus.

2. These five items are called Pakistan’s big five exports. Arrange them
in the order of their ranking from first to fifth.

Ans. i. cotton, ii. Rayon, iii.rice, iv. sports goods, v. carpets.

3. Explain what is meant by invisible exports and imports.

Ans. Invisible exports and imports: These are the Pakistani workforce
employed overseas especially in the oilfields of Saudi Arabia, UAE, USA,
and in other jobs in the West and East. They earn foreign exchange and
send the money to their families living in Pakistan. This adds to the foreign
exchange reserves of the country.

4. Explain what is meant by the terms balance of payment, trade deficit,

and trade surplus.

Ans. Balance of payment is the record of money payments between one

country and other countries incurred due to exports, imports, foreign
investments, loans, and other cash flows. When imports are higher than
exports, the difference calculated is called trade deficit and when exports
are higher than imports and this difference calculated is called surplus.

5. Which is the single largest import of Pakistan? Where does the bulk of
this come from?
Ans. Crude petroleum and its products are the largest imports, as these are
needed for transport and energy. These come mainly from the Gulf States,
and especially from Arabia.

6. Enlist the import items of Pakistan.

Ans: The main imports of Pakistan are petroleum products (refined

petroleum, petroleum gas, and crude oil), Edible oil, Electrical and
electronic items, Machinery, Iron, Steel, Pharmaceutical, Organic
Chemicals, Vehicles and Defense related products.

7. Enlist the export items of Pakistan.

 Ans: Textiles and worn clothing

 Cotton

 Knitted or crocheted clothing and accessories

 Clothing accessories

 Cereals

 Leather/animal gut articles

 Sugar and manufactured products

 Mineral fuels including oil

 Beverages, spirits, vinegarSalt, sulfur, stone, cement

 Fish and poultry