INTERNATIONAL TRADE

A primitive system of trade where direct exchange of goods take place:

• Local Trade

• Barter Trade

• National Trade

• International Trade

Which of the following is not true about International trade in India?

• The value of export is less than the value of import

• International trade in India has undergone a sea change from the past

• India's contribution in world trade is as low as 4%

• Manufactured goods share bulk of exports from India

International trade is based on which of the following principles?

• Principle of Comparative advantage

• It should be mutually beneficial to the trading partners

• Complimentarity and Specialisation of skills

• All of these

What is the cause behind the decline in the share of traditional items of export from India?

• Low quality products

• Tough international competitions

• Decline in the production of traditional items

• Decline in demand of these products

'Difference of natural resources' is an important basis of interanational trade. Which of the following factors doesn't explain difference in natural resources?

• Mineral resources are unevenly distributed

• Variation in climate causes variation in natural vegetation

• Densely populated countries have large volume of internal trade

• None of these

India faced serious food shortages in 1950's and 1960's. So food grains were an important item of import. What changed this condition after 1970's?

• High Price of grains in International market

• The success of Green revolution in India

• Spread of epidemics

• Decline in population

Which of the following is not true about 'Balance of Trade'?

• Developing countries have negative balance of trade

• Developed countries have negative balance of trade

• It refers to the difference between the value of imports and the value of exports

• Balance of trade has no relation with developing and developed countries

Observe Table 8.5. Which item has the largest share in total imports of India.

• Petroleum and Petroleum products

• Chemical products

• Edible oils

• Iron and Steel

Observe Table 8.5. Why does India import edible oil, inspite of being an agriculturally rich country? Choose the best possible answer.

• Indians consume a lot of oily food

• India doesnot produce oilseeds

• The consumption of edible oil in India is more than its production

• India is largest producer of edible oil in the world

Choose the incorrect statement.

• The act of opening up economies for trading is called trade liberalisation

• Trade liberalisation is attained by increasing the tariff

• It allows goods and services from everywhere to compete with domestic products

• Trade liberalisation is not in favour of small businesses