MCQs on International Trade

Which of the following is NOT an advantage of international trade?

• Access to a larger market

• Increased efficiency and competition

• Complete self-sufficiency of a nation

• Availability of foreign exchange

The principle of Comparative Advantage was introduced by:

• Adam Smith

• David Ricardo

• John Maynard Keynes

• Alfred Marshall

Which of the following is NOT a trade barrier?

• Tariff

• Quota

• Subsidy

• Foreign exchange reserves

Dumping refers to:

• Selling goods at a lower price in foreign markets than in domestic markets

• Imposing high import duties on foreign goods

• Exporting only raw materials and importing finished goods

• Restricting exports to maintain domestic supply

Which of the following is NOT a component of the Balance of Payments (BoP)?

• Current Account

• Capital Account

• Official Reserves Account

• Government Budget

Free trade refers to:

• Trade that is completely controlled by the government

• Trade with minimal or no restrictions

• Trade with only one country

• Trade based on bartering goods

A tariff is:

• A tax imposed on imports

• A limit on the quantity of imports

• A trade agreement between two nations

• A restriction on domestic industries

When a country imports more than it exports, it results in:

• Trade Surplus

• Trade Deficit

• Balanced Trade

• Favorable Balance of Trade

Which of the following organizations regulates international trade?

• International Monetary Fund (IMF)

• World Bank

• World Trade Organization (WTO)

• United Nations (UN)

Which of the following is NOT a function of the WTO?

• Promoting free trade among member countries

• Resolving trade disputes

• Providing loans to developing countries

• Formulating international trade policies