Which of the following is the basis of international trade?

• Similar resources in all countries

• Unequal distribution of natural resources

• Equal production everywhere

• Same climatic conditions

Assertion (A): International trade leads to interdependence among nations. Reason (R): Every country produces all goods in equal quantity.

• Both A and R are true, and R is the correct explanation of A.

• Both A and R are true, but R is not the correct explanation of A.

• A is true, but R is false.

• A is false, but R is true.

The trade between two countries is called —

• Bilateral trade

• Multilateral trade

• Domestic trade

• Local trade

Which of the following is not a barrier to international trade?

• Tariff

• Quota

• Free trade

• Exchange control

The major factor promoting international trade in the 21st century is —

• Political rivalry

• Globalization and technology

• Agricultural growth

• Population explosion

Assertion (A): Countries engage in trade to utilize their resources effectively. Reason (R): All countries have uniform resource endowment.

• A true, R false

• Both true, R explains A

• Both true, R not explains A

Which one of the following is a form of invisible trade?

• Export of wheat

• Import of machinery

• Shipping and insurance services

• Export of coal

Which of the following statements is true?

• Trade always depends on population

• Trade occurs due to self-sufficiency

• Trade is an exchange of goods and services

• Trade is limited to domestic boundaries

Clue: “Organization that promotes free and fair trade among nations.” Identify it.

• IMF

• WHO

• WTO

• FAO

The term ‘Globalization’ refers to —

• Isolation of economies

• National trade only

• Integration of world economy

• Political dependence