International trade Test 1

Dumping refers to

• Reducing tariffs

• Sale of goods abroad at low a price, below their cost and price in home market

• Buying goods at low prices abroad and selling at higher prices locally

• Expensive goods selling for low prices

International trade and domestic trade differ because of:

• Different government policies

• Immobility of factors

• Trade restrictions

• All of the above

Govt. policy about exports and imports is called:

• Commercial policy

• Fiscal policy

• Monetary policy

• Finance policy

Which of the following is international trade:

• Trade between regions

• Trade between provinces

• Trade between countries

• Both B and C

Theory of comparative advantage was presented by

• Adam Smith

• Ricardo

• Hicks

• Arshad

Which is NOT an advantage of international trade

• Export of surplus production

• Import of defence material

• Dependence on foreign countries

• Availability of cheap raw materials

Modern theory of international trade is based on the views of

• Robbins and Ricardo

• Adam Smith and Marshall

• Saleem and Kareem

• Heckcsher and Ohlin

Net exports equal

• Exports x Imports

• Exports + Imports

• Exports - Imports

• Exports of services only

International trade and domestic trade differ because of

• Trade restrictions

• Immobility of factors

• Different government policies

• All of the above

Rich countries have deficit in their balance of payments

• Sometimes

• Never

• Alternate years

• Always