UNIT No.1. You can access the 25 Foreign Trade Questions through this link: https://goo.gl/forms/RoGuRaDFHupbWTC32. Disadvantages of Foreign Trade: Some of the disadvantages of foreign trade are as follows: i. Mis-Utilisation of Natural Resources: Export of natural resources may exhaust the natural resources of a country and may restrict the growth of home industries. Maximizing consumer welfare may not be a chief priority If you have a question regarding those rules, we can help. Click here for instructions on how to enable JavaScript in your browser. Q.16:   What is meant by deficit or unfavorable balance of trade? 1. are of the same nation. Among other knowledge, such as administration, negotiation, logistics, economics and geography, he needs to be a bit generalist and know everything a little, to know the habits, customs and peculiarities of each country. Ans:     The trade that takes place between the inhabitants of two countries or the trade that takes place among the individuals living in different countries of the world is called international trade. Economics, Deductive Method: Meaning, Steps, Merits and Demerits. Ans:     1) Acquisition of foreign goods, 2) Availability of goods in case of shortage, Ans:     1) Dependence on the production of Limited goods, Ans:     1) Expenditure on education in foreign countries, 2) Expenditure on treatment in foreign countries, 4) Expenditure on political, cultural and trade delegates. International Trade Q.1: What is meant by domestic trade? Measurement Scales: By measurement, we usually mean the assigning of numbers to observations or objects and scaling is a process of measuring. In this article, we will learn about foreign trade and the important features of foreign trade. As every country relies on this they need to maintain good relations with the country they are importing from. It can identify buying and selling opportunities and develop strategies for the viability of a business, defining marketing and logistics plans, among others. In order to post comments, please make sure JavaScript and Cookies are enabled, and reload the page. It is not so simple not to be superficial, but also not so complex as to seem inaccessible. Essay # 5. Take mock exam Now. State the evolution, characteristics and types of foreign trade. a. If your business is Trade Shows, Customs, Trade Finance, Inspection, Insurance, Trade Laws, Trade Solutions, Translation or involves in foreign trade supply chain, you will want to be part of the world largest international B2B trade community. Economic Reforms Since 1991 Class 12 Economics Important Questions. The International Trade is a very important aspect in the positive growth of the world economy. Ans:     terms of trade = PX/PM  x 100, 4) Arising of the atmosphere of brotherhood, Ans:     1) Peaceful solution of train differences, 2) Elimination of taxes on transportation, 4)  Cheap provision of necessities of life, Ans:     1) Unfavorable economic conditions, 2) Provision of commodity injurious to health, 3) Decrease in reserve of foreign exchange, 4) Obstacle in the way of setup of new industries. There are three types of international trade: Export Trade, Import Trade and Entrepot Trade. The foreign trade test shows several aspects of international trade, from theory to practice. 25 Foreign Trade Questions. They are just an instrument of knowledge of your skills and interests to help you better reflect on your profession. Tax on import is something which become barrier during foreign trade. This professional also needs to analyze market trends – both externally and internally – and assess the needs of buyers and suppliers. This exchange of commodities by countries is considered as the foreign trade of the country. August 17, 2020 October 26, 2019 by admin IMPORTANT QUESTIONS FOR 1st SEMESTER EXAMINATION. Australian Trade Liberalisation: Analysis of the Economic Impacts – a 2017 Centre for International Economics (CIE) report on the benefits of trade liberalisation for Australia. Therefore, we are now analyzing the concept of utility. The four scales... Goods: A good is a material thing used to satisfy a human want or in other words, a good is a material thing which has utility to satisfy any human want. Share your comments below! Ans:     The rate at which commodities are exchange with each other in the international trade is called terms of trade. Foreign trade is very rich in content and is what makes the world grow economically – and socially inclusive. There chapter wise Practice Questions with complete solutions are available for download in myCBSEguide website and mobile app. Thanks for your comment, Mr. Carter. INR is Indian currency except that all other currency will be foreign exchange for India. Foreign trade - MCQs with answers 1. Foreign trade leads to division of labour and specialisation at the world level. Specifically, what happens if the two countries trade?Producers in Country A will subsequently lose out because consumers will buy the Country B option. Currently you have JavaScript disabled. This organization provides foreign exchange to improve the balance of payment of its members. Ans:     The systematic record of visible and invisible exports and imports of a country in one year is called balance of payment. Jhansi Institute of Commerce 363 views 17:29 They choose that option because it is cheaper… Warning: Please be aware that tests of this type have no scientific validity. Ans:     If a country visible goods exports having more value than that of visible goods imported by it the balance of trade is said to be surplus or favorable. What is meant by “fair globalization’? B.Com. Ans:     If a country exports its visible and invisible goods of more value than the value of its imports of visible invisible goods, then its balance of payment will be surplus or favorable. Free Trade Agreement Utilisation Study – a PricewaterhouseCoopers (PwC) report finds Australia's North Asian FTAs have high utilisation rates for merchandise trade. The test shows several aspects of international trade, from theory to practice. Those foreign trade management ways can demage to the importers and exporters if the processes of them used wrongly. Some countries have abundant natural resources. Ans:     If the value of visible exports of a country is less than the value of its visible imports, then its balance of trade will be deficit or unfavorable. Great article! by Walter Nicholson, Schaum’s Outline of Microeconomics by Dominick Salvatore, Environmental & Natural Resource Economics by Tom Tietenberg, Macroeconomics by N. Gregory Mankiw (2016), Public Sector Economics / Public Finance Syllabus for M.A. B.COM FOREIGN TRADE IMPORTANT QUESTIONS FOR 1ST SEM. Your email address will not be published. Ans:     If a country exports its visible and invisible goods of less value then the value of its imports of visible and invisible goods then, its balance of payment will be deficit or unfavorable. Have you studied International Business and have very good marketing skills, then you can build a strong career in International Trade. e.g. FOREIGN TRADE B.com(General)1Year. Data from the Census Bureau, Customs and Border Protection, the Treasury Department, and other federal agencies are also important for producing … Notify me of follow-up comments by email. Since major countries in the world are currently in global trade tussle with each other, being aware of all the facts and loopholes is necessary more than ever, from a legal perspective. Ans: The trade that takes place between the individuals living in the same country is called domestic or national or internal trade. Ans:     Account of exports and imports of general goods and services is called current account of balance of payment. What happens if it costs more for Country A producers to make something than for Country B producers? Click here for instructions on how to enable JavaScript in your browser. Entrepot Trade is a combination of export and import trade and is also known as Re-export. Trade Regulations - Foreign Trade - US Census Bureau This Javascript allows the page in IE to resize to the minimum width of 853 pixels and no less. International trade often acts as an anti-monopoly weapon by foreign domestic producers to achieve greater efficiency so as to be able to intro­duced foreign competition and survive in the long run. 25 Foreign Trade Questions. The documents are significant for importers, exporters, forwarding companies and the banks that according to those documents, importers start to clearance process with those documents, in addtition, if there is lack of the valuable documents, importer must pay the extra … Define Foreign Trade. Take Foreign Trade Practice test with MCQ on international trade, foreign trade policies, Forex management, import and export basics etc. 1. Foreign Trade Management or Bachelor of Commerce in Foreign Trade Management is an undergraduate Foreign Trade course.The Foreign Trade Management course offers a global perspective and helps build a solid foundation and understanding of … Important Questions in International Business/ Foreign Trade/ International Marketing 2 mark and 5 mark questions Define the term ‘International Business’. Most less-developed countries have agriculture-based economies, and many are tropical, causing them to rely heavily upon the proceeds from export of one or two crops, such as coffee, cacao, or sugar. Much of what Americans know about the United States’ role in the world economy stems from BEA’s international trade and investment statistics. Which of the following is a part of capital account? Q.2: What is meant by international trade? Banking capital c. Official capital For it to be possible certain considerations have to be taken into accounts and models have been formulated to show this such as the Ricardian model and Heckscher-Ohlin model. Required fields are marked *. This document is highly rated by … Domestic Trade: International Trade: Nationality of Buyers and Sellers: Under this person of one nation work in their respective domestic market. Foreign trade is a journey for world economic knowledge, and international trade is always beneficial to the development of countries, economic growth, technology absorption, empowerment of minorities and small entrepreneurs, and to improve the income of people. It means importing goods from one country and exporting it to another country after adding some value to it.For instance, India imports gold from China makes jewelry from it and then exports it to other countries. The need and Importance of foreign currencies, Middleman, etc Questions to measure degree. 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