1.

International trade and domestic trade differ because of:

(a) Different governmental policies
(b) Immobility of factors
(c)Trade restrictions
(d) All of the above

2. Which of the following is international trade?

(a) Trade between countries
(b) Trade between regions
(c) Trade between provinces
(d) Both (b) and (c)

3. Trade around two or more different countries is calied:

(a) International trade
(b) External trade
(c) Internal trade
(d) Unilateral trade

4. The initial form of trade in primitive societies was called:

(a) Primitive system
(b) Exchange system
(c) Barter system
(d) None of the above

5. Specializing in the production of things that individual/ companies are relatively good at and
trading with others who specialize in what they are relatively good at:
a) Mercantilism
b) Comparative advantage
c) Absolute advantage
d) Specialization

6. Theory of factor endowments is given by:

(a) Ricardo
(b) Adam smith
(c) Taussig
(d) Ohlin and Heckscher

7. Which of the following is the stage of PLC?

(a) Introduction
(b) Growth
(c) Maturity
(d) All of the above

8. Which theory was propounded by Raymond Vernon?

(a) Absolute advantage theory
(b) Product lifecycle theory
(c) Mecantilism
(d) None of the above

9. ……………….. suggests that each country should specialize in producing only those goods
which it can produce efficiently
(a) Mercantilism
(b) H-O Model
(c) Comparative advantage
(d) Absolute advantage

10. According to………………… the holdings of a country's treasure primarily is the form of
gold constituted its wealth.
(a) Gold theory
(b) Ricardo's theory
(c) Mercantilism theory
(d) Hecksher’s theory

11. Factors that affect international marketing decisions are:

(a) Political
(b) Economic
(c) Social
(d)All of the above

12. …………….means selling the product at a price less than going rate.
(a) Quota
(b) Tariff
(c) Subsidy
(d) Dumping

13. Domestic company limits its operations to…………… political boundaries.

(a) International
(b) National
(c) Transnational
(d) Global

14. The most generic name to describe corporations operating around the world:
(a) INC
(b) MNE
(c) MNC
(D) Global Corporation

15. An import tariff is a tax or duty levied on………. commodities.

(a) Imported
(b) Exported
(c) Transported
(d) Both (a) and (b)
16. ……………….is a fixed percentage of the value of the traded commodity.
(a) Anti-dumping duty
(b) Specific duty
(c) A compound tariff
(d) Ad valorem tariff

17. Cash. grants, loans at a low rates, and tax holidays are examples of:
a) Quotas
b) Subsidies
c) Discounts
d) Tariff

18. …………………..is a combination of an ad valorem and specific tariff.

(a) Anti-dumping duty
(b) Specified valorem tariff
(c) EXIM tariff
(d) Compound tariff

19. …………….. refers to goods imported from one country and exported to another country.
(a) Third party trade
(b) Entrepot trade
(c) Export trade
(d) EXIM trade

20. International trade contributes and increases the world…………….

(d) Population
(b) Inflation
(c) Economy
(d) Trade barriers

21. ………………..refers to the tax imposed on imports

a) Tariffs
b) Imported tax
c) Subsidies
d) Import quotas

22. Which of the following constitutes India's major import item?

Jute and Textile
Crude oil
Gems and Jewellery
None of the above

23. Out ofthe following institutions, which provides the importer-exporter code essential for
doing trade internationally:
(a) EXIM Bank
(b) RBI
(c) DGFT
(d) ECGC

24. DGFT stand for

(a) Directorate General of Foreign Trade
(b) Director General of Foreign Trade
(c) Directorate General of Foreign Transfer
(d) Director General of Foreign Transfer

25. What is an indicator of self-reliance?

(b) Crude Oil
(a) Increase in imports of the goods which could be produced in the country
(b) Avoiding imports of the goods which could be produced in the country
(c) Increase in exports of the goods which could not be produced in the country the country
(d) Avoiding exports of the goods which could be produced in the country

26. Export of which of the following is an Invisible Export?

(a) Services
(b) Prohibited goods
(c) Unrecorded goods
(d) Goods through smuggling

27. If there is an increase in the external commercial borrowings in India. what will be the
impact on the external debt of the country
(a) Decrease
(b) Remain unaffected
(c) increase
(d) Either increase or decrease

28. Which is not an Indian MNC?

(a) Unilever
(b) Asian paints
(c) Piramal
(d) Wipro

29. Free international trade maximizes world's output through:

(a) Countries reducing various taxes imposed
(b) Countries specializing in production of goods they are best suited for
(c) Perfect competition between countries
(d) Diluting international business laws

30. FDI stands for:

(a) Foreign direct import
(b) Foreign directive investment
(c) Fast direct investment
(d) Foreign direct investment

31. Balance of Payment is an accounting statement that records monetary transactions between:
(a) Residents of a nation and the rest of the world
(b) Non-residents and the rest of the world
(c) Residents of a nation and non-residents
(d) None of the above

32. The components of a balance of payment account are:

(a) Capital account
(b) Current account
(c) Both (a) and (b)
(d) Smart account

33. Balance of trade is the:

(a) Difference between export and import of services
(b) Total of export and import of services
(c) Difference between export and import of goods
(d) Total of export and import of goods

34. Trade is a process which includes:

(a) Buying goods and services
(b) Exchanging goods and services
(c) Selling goods and services
(d) None of the above

35. The aim of foreign trade is/are:

(a) To increase production
(b) To raise the standard of Iiving
(c) Both (a) and (b)
(d) None of the above

36. Trade deficit occurs when:

(a) Export of goods is less than imports of goods
(b) Export of goods is more than import of goods
(c) Export of services is less than import of services
(d) Export of services is more than import of services

37. The measure taken to improve the negative balance of payment include:
(a) Exchange control
(b) Currency devaluation
(c) Import substitution
(d) All of the above

38. Which of the following statemnents is correct?

(a) Balance of trade is a part of balance of payment
(b) Trade in goods and services and net transfers result in capital account surplus
(c) when export exceed imports, there is a trade deficit
(d) None of the above

39. One of the problems of India's Foreign Trade is:

(a) Payment of imports in rupees
(b) Increasing quantity of exports
(c) Unfavorable terms of trade
(d) More than one of the above

40. There is a need of foreign trade due to:

(a) Uneven distribution of natural resources
(b) Division of labour and specialization
(c) Differences in economic growth rate
(d) All of the above

41. This principle states that trade agreements should reduce the trade barriers between nations
and encourage the free flow of trade.
(a) Fair competition
(b) Free trade
(c) Trade barrier
(d) Trading

42. In order to protect the domestic industries, India was

following a regime of:
(a) Devaluing foreign currencies
(b) Quantitative restrictions on export
(c) Quantitative restrictions on imports
(d) Devaluing Indian currency

43. Grouping of countries commited to removeall barriers to the free flow of goods and services
between themselves and also pursue independent external trade policies is called:
(a) Free trade area
(b) Custom union
(c) Common market
(d) Economic union

44. FTA stands for:

(a) First Trade Agreement
(b) Free Trade Agreement
(c) First Trade Association
(d) Free Transfer Agreement

45. Which among the following countries with which India does not have FTA?
(a) South Korea
(b) Japan
(c) Thailand
(d) Brazil

46. Foreign Trade is an exchange of capital, goods, and services across

(a) International
(b) National
(c) Transformational
(d) Both b and c

47. In most countries, foreign trade represents a signilicant share of:

(a) EXIM
(b) FDI
(c) GDP
(d) Per capita Income

48. Which of the following is not a type of disequilibrium in the balance of payment?
(a) Structural disequilibrium
(b) Secular disequilibrium
(c) Transactional disequilibrium
(d) Cyclical disequilibrium

49. The items on the capital account of balance of payments are:

(a) Flow variables
(b) Stock variables
(c) Changes in stock magnitudes
(d) Both stock and flow variables
(c) Bangladesh

50. From which of the following countries, does India import the maximum amount of Tea?
(a) China
(b) Kenya
(c) Bangladesh
(d) Nepal

51. A nation that has a positive net exports enjoys a trade:

(a) Loan
(b) Deficit
(c) Surplus
(d) Amount

52. Which of the following should not be included in the balance of payments account?
(a) Import of automobile parts
(b) Bonus shares to equity shareholders
(c) Dividend payment to home-country investors from a foreign subsidiary
(d) Interest payment on loan to the IMF

53. Which of the following is a benefit of industrial development and foreign trade?
(a) Increase competition
(b) Reduced availability of goods
(c) Decreased economic growth
(d) None of the above

54. The theory which explains the effect of devaluation on balance of trade is known as:
(a) Phillips curve theory
(b) Mundell-Tobin hypothesis
(c) J curve theory
(d) K curve theory

55. The net barter terms of trade refers to:

(a) The excess of import expenditures over export earnings
(b) Trade agreements
(c) The terms and conditions on which a country is offered a loan in the event of balance of
payments difficulties
(d) The ratio between export prices and import prices

56. Which of the folloving events contributed most to the disruption in the bretton woods
system?
(a) Introduction of special drawing rights
(b) Suspension of convertibility of dollar into gold in 1971
(c) Oil price shock of 1973
(d) Western dominance over the system

57. Terms of trade in country show:

(a) Ratio of import duties
(b) Export prices to import prices
(c) Ratio of goods exported and imported
(d) Ratio of price of export prices

58. Among the factors that affect the balance of trade figures are:
(a) Exchange rates, taxes, tariffs and trade measures
(b) The business cycle at home or abroad
(c) Trade barriers and agreements
(d) Non-tariff barriers

59. Export control refers ta restrictions on:

(a) Domestic firms from engaging in exports
(b) Items that.can be exported from the country
(c) Foreign countries exporting to the
(d) Domestic firms engaging in trade with the nation
60. Which theory proposes that to gain competitive advantage in international trade a firm should
organize effectively its organisational hierarchy and minimize interdepartmental conflict.
(a) H-O trade theorem
(b) Heberlers theory
(c) J. S. Mill's terms of trade
(d) Porter's diamond model country

61. Modes of Entry to International market includes:

(a) Franchising
(b) Joint venture
(c) Wholly owned subsidiaries
(d) All,of the above

62. .....................is an investment made by a company individual in one country in business

interests in another
country.
(a) FDI
(b) FBI
(c) FTI
(d) FSI

63. Micheal Porter's DIAMOND MODEL İs related with:

(a) International marketing
(b) International trade
(c) International financial reporting
(d) International finance

64. Which theory of international trade argues that “countries with less resources often develops
competitive advantage"?
(a) Theory of absolute advantage
(b) Theory of competitive advantage
(c) Porter's diamond model
(d) Paul krugman's theory

65. The most common trade barrier faced by a multinational company is the:
(a) Embargo
(b) Quota
(c) Sales tax
(d) Tariff

66. The main obịective of IMF was to:

(a) Maintains stable exchange rates
(b) Promote international trade
(c) Help economically backward countries
(d) Promote international liquidity

67. Which of the following is not an international financial institution

(a) World Bank
(b) IMF
(c) IDA
(d) ICICI

68. The gains from two nations depend on:

(a) Domestic barter rates
(b) Degree of absolute advantage
(c) Different in the domestic barter rates of the two countries
(d) Terms of trade

69. Out of the following, which one is not related with WTO?
(a) TRIPS
(b) IRAI
(c) TRIMS
(b) GATT

70. Which of the following is not matched against its name?

(a) ASEAN- economic cooperation amongst all asian countries
(b) WTO- does not allow quantitative restriction on trade
(c) SAARC- encourage trade between south asian countries
(d) IMF- to remove unfavourable balance of payments and to provide financial assistance

71. The European union is an example of:

(a) Monetary union
(b) Free trade area
(c) Common market
(d) Economic union

72. The main promoter of international trade liberalization.

(a) IBRD
(b) NAFTA
(c) SAARC
(d) GATT-WTO

73. Global events and global competition affect:

(a) Small organisation
(b) Medium organisation
(c) Big organisation
(d) All
74. International business is any business activity that is carried out across the political
boundaries of a:
(a) State
(b) Country
(c) Continental
(d).Territory

75. ...........provides a series of rounds' of negotiations by which tariffs were reduced.

(a) IMF
(b) NAFTA
(C) IBRD
(d) GATT

76.............happens when imports are more thạn exports

(a) Trade barrier
(b) Trade deficit
(c) Trade surplus
(d) Trade contract

77. ..............happens when the exports are more than import

(a) Trade barrier
(b) Trade deficit
(c) Trade surplus
(d) Trade contract

78. AFTA stands for:

(a) ASEAN Free Trade Area
(b) American Free Trade Area
(c) Asian Free Trade Area
(d) Agreement Free Trade Area

79. ............was established by a multilateral treaty of 23 countries in 1947.

(a) WTO
(b) GATT
(c) UN
(d) NAFTA

80. Trade theories are classified into............... trade theories and modern trade theories.
(a) Regional
(b) Classical
(c) Local
(d) Ancient

81. Which of the following approaches of BOP explains the relationship between domestic
output and trade balance?
(a) The monetary approach
(b) The Keynesian approach
(c) The elasticity approach
(d) The absorption approach

82. Trade policy refornms in India are aimed at:

(a) Dismantling of quantitative restrictions on exports
(b) Removal of licensing procedures for imports
(c) Renmoval of quantitative restrictions on imports of manufactured consumer goods
(d) All of the above

83. FTP stands for:

(a) Foreign Trade Policy
(b) Foreign Trade Path
(c) Foreign Transfer Policy
(d) Foreign Transfer Path

84. Which of the following is NOT a Trade Barrier?

(a) Subsidies
(b) Embargo
(c) Export security
(d) Tariff barriers

85. What are the major objectives of the FTP?

(a) Boosts exports
(b) Support co-services
(c) Focused on improving ease of doing business
(d) All of the above

86. Which among the following is not eligible for export under EXIM policy 2015-2020 ?
(a) Deemed exports
(b) Customized fashion garments
(c) Both (a) and (b)
(d) Books/ periodicals

87. ..................scheme is one ofthe best export promotion schemes introduced by government
under FTP.
(a) Export Policy on Capital Goods
(b) Export Promotion Capital Godds
(c) Expenditure Policy on Capital Goods
(d) Expenditure Promotion Capital Goods

88. The FTP is also responsible for various concessions available to exporters operating in the:
(a) Domestic Trade Area
(b) Deposit Trade Area
(c) Domestic Tariff Area
(d) Domestic Tax Area

89. Which of the following is not an objective of export promotion capital goods scheme?
(a) Promote import of capital goods to enhance export
(b) Promote exports from India
(c) Reduce the customs duty collection from manufacturers
(d) Infuse high technology capital equipment in the manufacturing sector

90. VER stands for:

(a) Volume Export Restraint
(b) Voluntary Export Restart
(c) Volume Export Restart
(d) Voluntary Export Restraint

91. SEZ stands for:

(a) Special economic zone
(b) Special effected zone
(c) Special export zone
(d) None of the above

92. EPC stands for:

(a) Export promotion council
(b) Export promotion credit
(c) Export promotion country
(d) None of the above

93. Trade between two countries can be useful if cost ratios of goods are:
(a) Degrees
(b) Undetermined
(c) Different
(d) Equal

94. Duty drawback is the refund of duty chargeable on:

(a) Imported material
(b) Exported material
(c) Damaged material
(d) Exports to Indian owned warehouses in Europe

95. The following is a must for exporter:

(a) PP form
(b) GRX fom
(c) EP form
(d) GR form
96. ...............characteristics influence the choice of distribution channels in export marketing.
(a) customer
(b) employees moral
(c) global
(d) national

97. .............is management of the flow of good between the point of origin and the point of
consumption.
(a) Warehousing
(b) Packaging
(c) Logistics
(d) Compartment

98. ..............is the route by which the goods move to foreign buyers.
(a) Canalized
(b) Advertising
(c) Distribution channels
(d) Marking

99. provides information of the product and matters related to the product being exported.
(a) Labelling
(b) Marking
(c) Pack
(d) Positioning

100. Export quotation is:

(a) Commercial invoice
(b) An offer made by importer to exporter in reply to exporter's query
(c) An offer made by exporter to importer in reply to importer's
(d) Importer's bill

102. ..............gives an identity to the exporter and its brands sold in the foreign markets.
(a) Branding
(b) Marking
(c) Labelling
(d) Packaging

103. The main objective of export pricing is

(a) Applying for government incentives
(b) Maximizing the profits
(c) Ease in documentation
(d) Facilitates distribution

104. Packaging helps in:

(a) Protection against damages
(b) Preservation of quality
(c) Promotion of product
(d) All of the above

105. ..............is a longer channel of distribution in export business.

(a) Direct channel
(b) Indirect channel
(c) Latitudinal channel
(d) Longitudinal channel

106. ..................helps to distribute export goods only the product in export business.through
government agencies.
(a) Cooperatives
(b) Consortiums
(c) Customs officials
(d) Canalizing agencies

107. ..............distribution channel reduces per unit cost of the product in export business
(a) Direct
(b) Indirect
(c) Variance distribution
(d) Binomial distribution

108. Logistics in export marketing does not cover aspects of:

(a) Packaging
(b) Warehousing
(c) Material handling
(d) Advertising

109. .............covers financial risks in export business.

(a) Transportation
(b) Communication
(c) Insurance
(b) Warehousing

110. ...............is the most convenient and cost effective mode of transport in export business.
(a) Roadways
(b) Railways
(c) Airways
(d) Seaways

111. ................is a paid form of non personal presentation of export goods by the exporter
(a) Packaging
(b) Advertising
(c) Publicity
(d) Sales promotion

112. ...............is a warehousing type that holds zero- inventory, where products are received,
processed and shipped to exporting countries
(a) Cross-docking
(b) Near-shore
(c) Off-shore
(d) Horizontal

113. .................is a group of exporters who form trading association for mutual distribution
benefits.
(a) Canalizing agency
(b) State corporation
(c) Consortium
(d) Manufacturing exporters

114. .................is a promotion element that uses short term tactic to persuade the importers to
make purchases.
(a) Trade fairs and exhibitions
(b) Sponsorships
(c) Sales promotion
(d) Salesmanship

115. The main purpose of packaging credit is to meet capital needs of exporters.
(a) Fixed
(b) Working
(c) Regular
(d) Interim

116. A major part of export finance is provided by banks.

(a) Commercial
(b) Agricultural
(c) Industrial
(d) Cooperative

117. ...............finances Indian joint ventures in foreign countries

(a) NABARD
(b) SIDBI
(c) EXIM
(c) ECGC

118. ................refers to export trade for which export proceeds are received in form of other
products in exchange of forex
(a) Entrepot
(b) Countertrade
(c) Position trade
(d) Swing trade

119. EXIM finances term loans.

(a) Short
(b) Fixed
(c) Micro
(d) Long

120. Exporter has to register with one of the following authorities:

(a) RBI
(b) DGFT
(c) ECGC
(d) EXIM bank

121. ................indicates the country in which the goods are manufactured

(a) Consular invoice
(b) Shipping bill
(c) Certificate of origin
(d) Commercial invoice

122. ..................gives titles to the goods in export business.

(a) Bills of exchange
(b) Bill of lading
(c) Shipping bill
(d) Commercial bill

123. ............is an export document that gives the consignment details to the exporter:.
(a) Mate's receipt
(b) Packing list
(c) Packing credit
(d) Certificate of origin

124. .............of middleman is an important consideration in export marketing.

(a) Product line specialization
(b) Goodwill
(c) Credibility
(d) All of the above

125. Export consignments are routed through..............transport in India.

(a) Road
(b) Air
(c) Marine
(d) All the above

126. Exporters need to register with export credit and guarantee corporation to cover different
types of:
(a) Sales
(b) Products
(c) Risks
(d) None of the above

127. Registration of export business with Director general of foreign trade is:
(a) Voluntary
(b) Semi-voluntary
(c) Mandatory
(d) All of these

128. Exporter is required to obtain..............from DGFT for registration

(a) IEC
(b) PAN
(c) Sales tax number
(d) GST number

129. Registration cum Membership Certificate is issued by .................in export trade.

(a) CA
(b) EPC
(c) ITPO
(d) Textile Ministry

130. ...............helps in confirming the source of exportable goods.

(a) Packing list
(b) Commercial invoice
(c) Carting order
(d) Certificate of origin

131. Complete set of documents is to be submitted by the exporter to................ during shipment
of goods.
(a) Sales tax officer
(b) Property tax dealer
(c) Custom appraiser
(d) Financial institutions
132. Bill of lading is issued by:
(a) Shipping company
(b) Agent of the importer
(c) Captain of the ship
(d) Custom officer

133. EPZ stands for:

(a) Export product zone
(b) Export payment zone
(c) Export processing zone
(d) Export presentation zone

134. A commercial invoice is issued by:

(a) Exporter
(b) Exporter's bank
(c) Importer
(d) Importer's bank

134. SEZ are:

(a) Situated outside India, but subject to RBI control
(b) Treated as foreign territory and not Indian laws
(c) Governed by international and not Indian laws
(d) Prohibited from buying from Domestic Tariff Area

135. The IEC number is a number with:

(a) 7 digits
(b) 8 digits
(c) 9 digits
(d) 10 digits

136. The geographically distributed area or zone where the econonmic laws are more liberal as
compared to other parts
of the country is called:
(a) EOU
(b) SEZ
(c) AEZ
(d) FTZ

137. Extension of marketing activities across the globe is called as

(a) International marketing
(b) Universal marketing
(c) International business
(d) Borderless marketing
138. ...............factors affects international marketing decisions
(a) Political
(b) Economical
(c) Social
(d) All of the above

139. The key difference in international marketing and domestic marketing is that
(a) The marketing activities take place in more than one country
(b) The marketing activities take place in one country only
(c) The marketing activities take place in host country only
(d) The marketing activities MUST take place in all countries

140. An arrangement to pay for import of goods and services with something other than cash is
known as:
(a) Dumping
(b) Drop shipping
(c) Countertrade
(d) Reversal buying

141. This consists of sources of data and procedures of obtaining data

(a) International marketing data service

(b) International marketing intelligence system
(c) International marketing information system
(d) International marketing artificial system

142. ..................is an integrated and comnprehensive network of information relating to all areas
of international business having direct or indirect bearing on marketing.
(a) International marketing data service
(b) International marketing information system
(c) International marketing intelligence system
(d) International marketing artificial system

143. Large type of exportėr, will choose...........distribution channel.

(a) Exclusive
(b) Inclusive
(c) Indirect
(d) Direct

144. The term green marketing in international marketing is related to:

(a) Influence of green color on marketing decisions

(b) Environmental concerns and protection
(c) Marketing of natural farming
(d) Green house effect

145. A voluntary export restraint is the opposite form of:

(a) Import quotas
(b) International tariffs
(c) Subsidies
(d) Dumping

146. The international trade between.................is like a vast game of beggar my neighbor.
(a) Exporter and Importer
(b) Two countries
(c) Two world wars
(d) Country's allies and enemies

147. Which of the following constitutes Foreign Direct Investment?

a) A speculator trying to make a profit by buying company shares on a foreign stock exchange.
b) A UK energy company buying territory abroad where it expects to find oil reserves.
c) A tourist purchasing foreign currency to spend on a holiday abroad.
d) A company signing an agreement with a wholesaler to distribute its products in foreign
markets.

148. Which of the following could be defined as a multinational company?

a) A firm that owns shares in a foreign company but does not participate in the company's
decision making
b) A UK based internet package holidays firm specializing in selling tours to Turkey to German
customers.
c) A firm owning a chain of supermarket outlets outside its country of origin.
d) A finance company transferring its HQ and all its activities from the UK to the US.

149. Which of the following is a driver of globalization?

a) Trade barriers and controls on inflows of foreign direct investment.
b) Weak competition
c) Technological advance
d) Economies of scale are being exploited to the maximum.

150. What is the share of TNCs in world trade?

a) 20%
b) 40%
c) 50%
d) 60%

152. Which country is not members of SAFTA?

a) India
b) Bhutan
c) Japan
d) Sri Lanka

153. BOP includes :

a) Transfer payment
b) Capital inflow and out flow
c) Export and import of goods and services
d) All of the above

154. Which is a cause that create disequilibrium in BOP?

a) Economic
b) Political
c) Social
d) All of the above

155. Ethnocentric views

a) Home country
b) Host country
c) World orientation
d) Racial orientation

156. In a global market place:

a) The entire world is a market place
b) National borders are irrelevant
c) The potential for organizations to grow expands dramatically
d) All of the above

157. Specific cultural dimensions that does not have a significant impact on cross national
business interactions is :
a) Hofstede's five cultural dimensions
b) Monochromatic Vs polychromatic tune
c) Communication
d) Geography

158. In TRIMS, T' denotes:

a) Investment
b) Intellectual property
c) Interim Relief
d) Insecurit

159. International economic integration treated on trade block:

a) United nations agreement on trade and commerce
b) Custom union
C) IMF
d) IBRD
160. Main work of IMF is :
a) Surveillance
b) Technical assistance
c) Lending
d) All of the above

161. UNCTAD Head quater is strutted at :

a) Paris
b) New Yark
c) Geneva
d) Maxico city

162.In MIGA 'M' stands for:

a) Management
b) Multilateral
c) Multinational
d) Monopoly

163. Most Favored Nation (MFN) agreement in WTO says :

a) Same treatment for all member Nations
b) Discretionary favour to some Nations
c) Both (A) and (B)
d) None of the above

164. Special drawing Right is created by :

a) IMF
b) WTO
c) IBRD
d) All of the above

165.The internet facilitates globalization by :

a) Making it more difficult to contact potential customers abroad.
b) Cutting the cost for firms of communicating across borders.
c) Making it harder to send money from one country to another
d) Making it easier for governments to censor the information received by their citizens from
abroad.

166. Why might MNCs is in the past have focused their marketing activities on the triad?
a) That is where the most lucrative markets were located.
b) Income per head in developing countries was relatively low.
c) Transport and communication links were improving outside the triad.
d) Technologically advanced goods and services do not appeal to consumers in developing
economies

167. Globalization can create problems for business because:

a) It can result in more competition.
b) It increases vulnerability to political risk and uncertainty when operating abroad
c) It means that they can increase prices.
d) All of the options given are correct.

168. Which of the following statements on civil Law systems would be seen as advantage by
business?
a) Civil law systems operate in very few Countries.
b) Relevant areas of law are much easier to find than in common law systems.
C) Relevant areas of law are more difficult to find than in common law systems.
d) Lawyers act as oral advocates for their clients.

169. How does international law facilitate international trade and investment?
a) lt makes it easier to resolve contract disputes for firms involved in international trade and
investment.
b) It allow business to choose the most favorable national legal system to institute proceedings.
c) The terms used in international conventions are open to differing interpretations.
d) The Uniform Commercial Code favors big US multinationals.

170.Laws relating to The Single Market Program allow EU- based companies to :
a) Move goods and services from any member state to another.
b) Transfer managers to any members state.
c) Invest anywhere in the EU.
d) All of the above

170. Competition Law in the EU means that firms :

a) Are free to set up international cartels.
b) May be refused permission to take overa US competitor.
c) Cannot be made to repay government financial assistance.
d) Can cross-subsidise loss-making services from profitable activities.

171. In a global market place Managers must:

a) Deals with economic, political and cultural differences
b) Expect competitors to suddenly appear at any time from any place
c) Not to take specific differences of local environment into consideration
d) Both (A) and (B)

172. Trade Related Investment Measures (TRIMS) does not apply for :
a) Measures that affect trade in goods
b) Measures that lead to restrictions in quantities
c) Discouraging measures that limit a company's imports
d) Discouraging measures that limit a company's exports

173. General Agreement on Trade in Services will not be applicable to :

a) Services supplied from one country to another - cross border supply
b) Transaction of goods across the border-Export Import
c) Individuals traveling from own country to supply services in another presence of natural
persons
d) Consumers/firms making use of a services in another Country consumption abroad

174. As a part of WTO guidelines, Agreement on Agriculture (AOA) does not consider:
a) Direct Payment to farmers are permitted
b) Indirect assistance and support to Farmer. including R & D support by government are not
permitted
c) Domestic policies which directly effect on production and trade have to be cut back
d) Least developed countries do not need to make any cuts

175.Quantitative restrictions refer to limit set by countries to curb:

a) Measures that affect trade in goods
b) Measures that lead to restrictions in quantities
c) Discouraging measures that limit a company's imports
d) Discouraging measures that limit a company's exports

176.A Most Favored nation status does not necessarily refers to :

a) Same and equal economic treatment
b) Non-discriminatory treatment
c) Sane tariff rates applicable
d) Uniform civil code

177.The World Trade Organization was formed in the year with GATT as it basis.
a) 1933
b) 1994
c) 1995
d) 1996

178. The law relating to E-Commerce first which of the following descriptions :
a) It comprises a single set of laws.
b) The law lacks clarity.
c) There is no problem applying
d) The law makes it easy to deal with foreign computer hackers.

179. The existence of different Currencies is beneficial to private financial institutions because :
a) Each country has its own currency.
b) The exchanges rate of each currency is fixed by the International Monetary Fund.
c) A collapse in the exchange rate of a currency can cause economic disruption
d) Profits can be made from arbitrage.

180. The International Monetary Fund is important because :

a) It has sufficient financial resource to deal with a major global financial crisis.
b) It has sufficient financial resources to help individual countries facing balance of payment
problems.
c) Emerging economics can exercise significant influence on it.
d) It fixes exchange rates.

181. Which of the following are characteristic of the period when financial bubbles burst?
a) Excessive optimism about future asset prices.
b) Excessive pessimism about future asset prices.
c) Rising house prices.
d) Rising share prices.

182. What functions do financial institutions traditionally perform?

a) They immobilise savings.
b) They concentrate risk.
c) They spread risk.
d) They offer only short-term finance.

183. The balance of payment included which of the following?

a) A country's balance of trade
b) Foreign investments
c) Foreign aid
d) All of the above

184. Which country is not the member of SAARC?

a) Bhutan
b) Sri Lanka
c) Philippines
d) Maldives

185. Which one of the following is a pull factor in emigration?

a) Political oppression
b) Job opportunities
c) Food shortages
d) War

186. Which of the following do not facilitate globalization ?

a) Improvements in communications
b) Barriers to trade and investment
c) Immigration controls
d) Removal of controls on movement of capital across borders

187. Geographical indication specifies :

a) Place of origin of goods only
b) Special characteristics of product associated with place of origin
c) Both (A) and (B)
d) None of these

188. Strategic alliance cannot be between:

a) Manufacturer and supplier
b) Competitors
c) Non-competitors
d) None of the above

189. The mode of entry into international business with least risk to the firm is :
a) Export house
b) Trading house
c) A manufacturing exporter
d) Merchant exporter

.
190. A global company can its experience to expand its global operations
a) Contract
b) Expand
c) Minimize
d) Leverage

191. Governmental regulations can affect the viability and of a company using the internet as
foreign market entry mode.
a) Effectiveness
b) Association
c) Performance
d) None of the above

192. Typically offer more flexibility in international markets.

a) SMEs
b) LSEs
c) MNEs
d) None of the above

193. Within an international context, What are 'economies of scope' synonymous with?
a) Reusing a resource from one business/country in additional business/ countries.
b) Decreased cost per unit of output
c) Buying components in a bulk
d) Any of the above

194. Globalization refers to :

a) A more integrated and interdependent world
b) Less foreign trade and investment
c) Global warming
d) Lower incomes worldwide

195. Which of the following is not a driver of globalization?

a) The fragmentation of consumer tastes between countries
b) The competitive process
c) Multinational companies successfully persuading government to lower trading barriers
d) The need to gain economies of scale

196. Globalization is beneficial for firms because:

a) It protects them against foreign competition
b) It cushions them from the effects of events in other countries
c) It opens up new market opportunities
d) It increases the risk and uncertainty of operating in a globalizing world economy.

197. Which of the following is not an objective of IMF today?

(a) Discouraging adoption of exchange controls
(b) Developing a multilateral system of payments
(c) Maintaining exchange rate stability
(d) Assisting member countries to restore equilibrium in balance of payments

198. IBRD- stands for:

(a) International Bank for Reconstruction and Development
(b) Indian Bank for Reconstruction and Development
(c) International Bank for Research and Development
(d) Indian Board for Reconstruction and Development

199. Where was the Agreement on trade and tariffs signed?

(a) Mauritius
(b) Geneva
(c) China
(d) Singapore
200. Which convention gave birth to the IMF?
(a) Uruguay round conference
(b) Round table conference
(c) Bretton woods conference
(d) Shimla conference

201. Which among the following is not an objective of IMF?

(a) Promote International monetary cooperation
(b) Achieve Financial instability
(c) Enable International trade
(d) Sustain Economic growth and reduce poverty

202. World bank offers various services to its member countries:

(a) Loans and financial assistance
(b) Knowledge and research
(c) Eradicating poverty
(d) All of the above

203. Which of the following institutions is not a part of the World bank group?
(a) International bank for reconstruction and development
(b) International development association (IDA)
(c) Multilateral investment guarantee agency (MIGA)
(d) The bank for international settlements (BIS)

204. ASEAN stands for:

(a) Agreement of South-East American Nations
b) Association of South-East American Nations
(c) Association of South-East Asian Nations
(d) Agreement of South-East American Nations

205. The Association of Southeast Asian Nations was established on:

(a) 8 August 1966
(b) 7 August 1967
(c) 8 August 1967
(d) 7 August 1966

206. The members of the NAFTA are:

(a) USA, Canada, and Mexico
(b) USA, Canada, and India
(c) USA, Canada, and Japan
(d) USA, UK, and India

207. NAFTA stands for

(a) North American Free Trade Association
(b) North Asian Free Trade Agreement
(c) North American Free Trade Agreement
(d) North American First Trade Agreement

208. European Union organisation has its own governing and decision making institutions.
Which one of the following is not associated with the EU organisation?
(a) The European Council
(b) The European Commission
(c) The European Legislative Council
(d) Court of Justice

209.Which of the following is a benefit of international trade?

a) Increased unemployment
b) Lower efficiency
c) Access to larger markets
d) Reduced innovation
Answer: c
210.Comparative advantage refers to:
a) Producing more goods using more resources
b) Producing goods at lower opportunity cost
c) Protecting domestic industries
d) Eliminating all trade barriers
Answer: b
211.The exchange of goods and services across borders is called:
a) Domestic trade
b) International trade
c) Internal trade
d) Regional trade
Answer: b
212.Which is NOT a form of international trade?
a) Import
b) Export
c) Franchising
d) Migration
Answer: d
213.Balance of trade is:
a) Difference between government revenues and expenditures
b) Difference between imports and exports
c) Total foreign reserves
d) Difference between capital and current accounts
Answer: b
📗 21–40: Theories of Trade

214.Adam Smith’s theory of absolute advantage suggests:

a) Trade is not beneficial
b) Each country should produce everything
c) Specialize in goods you can produce more efficiently
d) Imposing tariffs increases wealth
Answer: c
215.The Ricardian model assumes:
a) Multiple factors of production
b) Constant returns to scale
c) Same technology in all countries
d) Labor is immobile across countries
Answer: d
216.Heckscher-Ohlin theory focuses on:
a) Technological superiority
b) Factor endowments
c) Government subsidies
d) Military power
Answer: b
217.Intra-industry trade refers to:
a) Trade within a single firm
b) Trade in similar products
c) Trade of raw materials only
d) Trade between unrelated sectors
Answer: b
218.The “new trade theory” highlights the role of:
a) Autarky
b) Comparative advantage
c) Economies of scale
d) Fixed exchange rates
Answer: c

📗 41–60: Institutions & Agreements

219.WTO stands for:

a) World Trade Organization
b) World Tax Organization
c) World Technology Order
d) World Treasury Office
Answer: a
220.The WTO was established in:
a) 1947
b) 1995
 c) 1980
d) 2001
Answer: b
221.GATT was replaced by:
a) IMF
b) IBRD
c) WTO
d) NAFTA
Answer: c
222.The most-favored-nation (MFN) principle promotes:
a) Tariff hikes
b) Discrimination among nations
c) Equal treatment in trade
d) Trade embargoes
Answer: c
223.Which is a regional trade agreement?
a) WTO
b) GATT
c) NAFTA (now USMCA)
d) IMF
Answer: c

📗 61–80: Trade Policies & Barriers

224.A tariff is:

a) A subsidy
b) A quota
c) A tax on imports
d) A loan to exporters
Answer: c
225.Non-tariff barriers include:
a) Tariffs
b) Quotas
c) Taxes
d) Exchange rates
Answer: b
226.Dumping refers to:
a) Exporting goods at a loss to gain market share
b) Protecting local industry
c) Imposing heavy taxes
d) Reducing foreign reserves
Answer: a
227.Protectionism aims to:
a) Liberalize trade
 b) Encourage free markets
c) Shield domestic industries
d) Promote globalization
Answer: c
228.Subsidies are government payments to:
a) Importers
b) Consumers
c) Exporters/producers
d) Foreign companies
Answer: c

📗 81–100: Current Trends & Case Studies

229.BREXIT mainly affected trade relations between:

a) UK and Asia
b) UK and EU
c) UK and Africa
d) UK and USA
Answer: b
230.China's Belt and Road Initiative focuses on:
a) Domestic manufacturing
b) Trade connectivity and infrastructure
c) Tourism
d) Reducing foreign aid
Answer: b
231.USMCA replaced which previous agreement?
a) TTIP
b) WTO
c) NAFTA
d) TPP
Answer: c
232.Trade war between the U.S. and China involved:
a) Military conflict
b) Currency manipulation
c) Tariffs and retaliation
d) Free trade treaties
Answer: c
233.India's main exports include:
a) Oil
b) Software services
c) Cars
d) Wheat
Answer: b
234.1. Which of the following is a reason countries engage in international trade?
a) Self-sufficiency
b) Absolute advantage
c) Equal resource distribution
d) Equal production costs
Answer: b) Absolute advantage
235.2. The theory of comparative advantage was developed by:
a) Adam Smith
b) David Ricardo
c) John Maynard Keynes
d) Milton Friedman
Answer: b) David Ricardo
236.3. Free trade means:
a) No taxes on imports or exports
b) Government controls all imports
c) Only imports are allowed
d) Complete ban on exports
Answer: a) No taxes on imports or exports
237.4. The balance of trade is:
a) Exports minus imports
b) Imports minus exports
c) GDP minus GNP
d) National income minus foreign income
Answer: a) Exports minus imports
238.5. A trade surplus occurs when:
a) Imports exceed exports
b) Exports exceed imports
c) Both are equal
d) Foreign aid is given
Answer: b) Exports exceed imports
239.6. WTO stands for:
a) World Trade Office
b) World Transport Organization
c) World Trade Organization
d) Western Trade Organization
Answer: c) World Trade Organization
240.7. The WTO replaced which organization?
a) IMF
b) GATT
c) NAFTA
d) UNCTAD
Answer: b) GATT
241.8. Tariffs are:
a) Non-tariff barriers
b) Taxes on domestic goods
c) Taxes on international goods
 d) Limits on production
Answer: c) Taxes on international goods
242.9. Quotas refer to:
a) Maximum price for a good
b) Minimum quantity for exports
c) Limit on quantity of imports
d) Tax on services
Answer: c) Limit on quantity of imports
243.10. Which of the following is a non-tariff barrier?
a) Import tax
b) Quota
c) Subsidy
d) Licensing requirement
Answer: d) Licensing requirement
244. International trade is the exchange of goods and services between:
a. A) Individuals
b. B) Nations
c. C) Companies
d. D) States
Answer: B
245. Which of the following is a major benefit of international trade?
a. A) Higher tariffs
b. B) Trade surplus
c. C) Access to goods not produced locally
d. D) Reduced employment
Answer: C
246. Comparative advantage means:
a. A) Producing goods with fewer inputs
b. B) Producing all goods domestically
c. C) Specializing in goods with the lowest opportunity cost
d. D) Importing more than exporting
Answer: C
247. The theory of absolute advantage was proposed by:
a. A) David Ricardo
b. B) Adam Smith
c. C) Heckscher
d. D) Ohlin
Answer: B
248. Which of the following is NOT a trade barrier?
a. A) Tariff
b. B) Quota
c. C) Subsidy
d. D) Currency depreciation
Answer: D
Section B: Trade Theories

249. Heckscher-Ohlin theory explains trade based on:

a. A) Cost advantage
b. B) Factor endowments
c. C) Tariffs
d. D) Political relations
Answer: B
250. The product life cycle theory was given by:
a. A) Raymond Vernon
b. B) Michael Porter
c. C) Adam Smith
d. D) Paul Krugman
Answer: A
251. Intra-industry trade refers to:
a. A) Importing raw materials
b. B) Exporting and importing the same kind of goods
c. C) Inter-sectoral trade
d. D) Exporting technology
Answer: B
252. Strategic trade theory supports:
a. A) Free market
b. B) Government intervention
c. C) Monopolies
d. D) Bilateral trade
Answer: B
253. The gravity model of trade uses:

 A) Cultural factors
 B) Population and GDP
 C) Climate
 D) Currency rate
Answer: B

Section C: Trade Organizations

254. WTO was established in:

 A) 1947
 B) 1995
 C) 2001
 D) 1985
Answer: B

255. The predecessor of WTO was:

 A) IMF
  B) World Bank
 C) GATT
 D) UNCTAD
Answer: C

256. WTO headquarters is in:

 A) Washington
 B) Geneva
 C) New York
 D) Paris
Answer: B

257. Which agreement deals with trade in services?

 A) TRIPS
 B) GATS
 C) TBT
 D) SPS
Answer: B

258. The TRIPS agreement deals with:

 A) Tariffs
 B) Patents and copyrights
 C) Services
 D) Agriculture
Answer: B

Section D: Trade Policy & Barriers

259. Tariff is:

 A) Tax on domestic goods

 B) Tax on imported goods
 C) Tax on exports
 D) Quota limit
Answer: B

260. Quota refers to:

 A) Tax on goods
 B) Non-tariff barrier
 C) Limit on quantity
 D) Quality control
Answer: C
 261. Dumping means:

 A) Selling goods at high prices

 B) Exporting goods at very low prices
 C) Importing goods at low prices
 D) Ban on imports
Answer: B

262. A voluntary export restraint is:

 A) Tariff
 B) Domestic restriction
 C) Export quota agreed by exporter
 D) Government ban
Answer: C

263. Non-tariff barriers include:

 A) Quotas
 B) Standards
 C) Licensing
 D) All of the above
Answer: D

Section E: Balance of Payments & Currency

264. BOP stands for:

 A) Balance of Products
 B) Balance of Payments
 C) Balance of Policies
 D) Balance of Profits
Answer: B

265. The current account includes:

 A) Capital inflows
 B) Imports and exports
 C) FDI
 D) Loans
Answer: B

266. A country has a trade surplus when:

 A) Exports > Imports

 B) Imports > Exports
 C) Loans exceed receipts
  D) Currency depreciates
Answer: A

267. Appreciation of currency leads to:

 A) Expensive imports
 B) Cheaper exports
 C) Expensive exports
 D) More tariffs
Answer: C

268. Devaluation is:

 A) Rise in domestic currency

 B) Fall in domestic currency value
 C) Elimination of currency
 D) Exchange rate stability
Answer: B

269. Which theory explains international trade by differences in productivity of labor?

A. Heckscher-Ohlin Theory
B. Ricardian Theory
C. Product Life Cycle Theory
D. Absolute Advantage Theory
✅ Answer: B. Ricardian Theory

270.Who introduced the concept of comparative advantage?
A. Adam Smith
B. Karl Marx
C. David Ricardo
D. John Maynard Keynes
✅ Answer: C. David Ricardo
271.The Heckscher-Ohlin model suggests that countries export goods that:
A. Are capital intensive
B. Are labor intensive
C. Use their abundant factor intensively
D. Are expensive
✅ Answer: C. Use their abundant factor intensively
272.Tariffs are:
A. Import subsidies
B. Export taxes
C. Import taxes
D. Export subsidies
✅ Answer: C. Import taxes
273.Which organization deals with global trade rules?
A. IMF
B. World Bank
 C. WTO
D. UNCTAD
✅ Answer: C. WTO
274.Dumping refers to:
A. Selling at high prices abroad
B. Selling goods at below cost price in foreign markets
C. Selling used goods
D. Increasing tariffs
✅ Answer: B. Selling goods at below cost price in foreign markets
275.An import quota is:
A. A tax on imports
B. A limit on the number of goods imported
C. A form of subsidy
D. A trade agreement
✅ Answer: B. A limit on the number of goods imported
276.Balance of Trade is:
A. Export - Import of services only
B. Import - Export of goods only
C. Export - Import of goods only
D. Export - Import of capital
✅ Answer: C. Export - Import of goods only
277.Which of the following is NOT a trade barrier?
A. Tariff
B. Quota
C. Subsidy
D. Free trade
✅ Answer: D. Free trade
278.Which agreement replaced GATT in 1995?
A. NAFTA
B. SAARC
C. WTO Agreement
D. BRICS Treaty
✅ Answer: C. WTO Agreement
279.Which of the following is a regional trade agreement?
A. OPEC
B. NATO
C. ASEAN
D. WHO
✅ Answer: C. ASEAN
280.Terms of trade refers to:
A. Import + Export
B. Export prices ÷ Import prices
C. Import prices ÷ Export prices
D. Export - Import
✅ Answer: B. Export prices ÷ Import prices
281.Free Trade promotes:
A. Self-sufficiency
B. Protectionism
C. Specialization
D. Trade barriers
✅ Answer: C. Specialization
282.Which currency is most commonly used in international trade?
A. Euro
B. Pound Sterling
C. Japanese Yen
D. US Dollar
✅ Answer: D. US Dollar
283.Which is a non-tariff barrier?
A. Subsidy
B. Quota
C. Import license
D. All of the above
✅ Answer: D. All of the above
284.The primary goal of WTO is to:
A. Promote bilateral trade
B. Impose tariffs
C. Reduce trade barriers
D. Eliminate currency differences
✅ Answer: C. Reduce trade barriers
285.Which of the following favors protectionism?
A. Infant industry argument
B. Comparative advantage
C. Globalization
D. Free market economy
✅ Answer: A. Infant industry argument
286.Which country is the world’s largest exporter as of recent years?
A. China
B. USA
C. Germany
D. Japan
✅ Answer: A. China
287.What does "invisible trade" refer to?
A. Trade in illegal goods
B. Trade not shown in balance sheets
C. Trade in services
D. Trade in digital goods only
✅ Answer: C. Trade in services
288.Exchange rate fluctuation affects:
A. Domestic production only
B. Only exporters
C. Only importers
 D. Both importers and exporters
✅ Answer: D. Both importers and exporters
289. Which of the following best defines international trade?
A. Trade within a country
B. Trade between two companies
C. Trade between two or more countries
D. Trade involving government only
Answer: C
290. The theory of comparative advantage was developed by:
A. Adam Smith
B. David Ricardo
C. John Maynard Keynes
D. Karl Marx
Answer: B
291. Which of these is a benefit of international trade?
A. Decreased product variety
B. Increased prices
C. Access to new markets and resources
D. Reduced innovation
Answer: C
292. Tariffs are best described as:
A. Trade agreements
B. Taxes on imports
C. Export subsidies
D. Domestic regulations
Answer: B
293. Which organization promotes free trade globally?
A. WHO
B. UNDP
C. WTO
D. IMF
Answer: C
294. Which of the following is NOT a barrier to international trade?
A. Quotas
B. Tariffs
C. Free trade agreements
D. Embargoes
Answer: C
295. Balance of trade is defined as:
A. The value of exports plus imports
B. The difference between exports and imports
C. The value of domestic production
D. The profit from trading stocks
Answer: B
296. Dumping refers to:
A. Selling products in domestic markets
 B. Selling goods at a lower price in a foreign market
C. Exporting high-quality products only
D. Importing goods illegally
Answer: B
297. A trade surplus occurs when:
A. Exports are less than imports
B. Imports equal exports
C. Exports exceed imports
D. A country imports capital goods
Answer: C
298. Which of the following agreements is related to international trade?
A. NAFTA
B. NATO
C. WHO
D. OPEC
Answer: A
299. Foreign exchange rate affects international trade by:
A. Making travel easier
B. Influencing the cost of goods across countries
C. Reducing customs duty
D. Increasing immigration
Answer: B