International Trade refers to the exchange of goods and services between countries. It covers exports, imports, trade balance, balance of payments, WTO and international trade policies. This topic plays a significant role in economic growth and is frequently asked in competitive examinations.
Free Trade Policy refers to a policy where there is:
Correct Answer:
(A) Absence of tariff
A free trade policy is a pact between two or more nations to reduce barriers to imports and exports among them. Under a free trade policy, goods and services can be bought and sold across international border with little or no government tariffs, quotas, subsidies or prohibition to inhibit their exchange.
Ques: 2
Free Trade Zones have been established in India for the:
Correct Answer:
(C) Promotion of export industries
Free Trade Zones (SEZs/FTWZs) have been established in India for the promotion of export industries. A free trade zone is an area where goods may be landed, stored, handled, manufactured or reconfigured and re-exported under specific customs regulation and generally not subject to customs duty.
Ques: 3
Which two countries accounted for the largest share percent in India’s total trade with rest of the world?
Correct Answer:
(D)
USA and China
In India's total trade with the world, the United States and China accounted for the largest shares, with the United States being the largest trading partner in 2021-22 and 2022-23, and China surpassing the US to become the largest trading partner in 2023-24, with a bilateral trade of $ 118.4 billion. India's largest trading partners are: 1) China, 2) USA, 3) UAE.
Ques: 4
Which of the following is included in Balance of Trade?
Correct Answer:
(A) Goods
Balance of Trade (BoT) is the difference between the value of exports and value of imports of goods of a country in a given period of time. BoT is said to be in balance when exports of goods are equal to the imports of goods. Surplus BoT or trade surplus will arise if country exports more goods than what it imports. Whereas, Deficit BoT or Trade deficit will arise if a country imports more goods than what it exports. Trade balance includes only visible items, while current account of Balance of Payments (BoP) includes both visible and non-visible items.
Ques: 5
Net export equals to:
Correct Answer:
(C) Export – Imports
The net export is the difference between the monetary value of a nation’s total exports and imports over a certain time period. The value of a nation’s total export of goods and services minus the value of all the goods and services it imports equal its net exports. A nation that has positive net exports enjoys a trade surplus, while negative net exports mean that nation has a trade deficit.
Ques: 6
Which of the following commodities has highest export from India?
Correct Answer:
(B) Engineering goods
In fiscal year 2024, engineering goods emerged as India's highest exported commodity, followed by petroleum products and gems and jewelry. This category encompasses products made from iron and steel, non-ferrous metals, industrial machinery, and automobiles, among other and its value reached upto USD 109.22 billion in FY 2023-24
Ques: 7
Which state has the maximum number of SEZ?
Correct Answer:
(B) Tamil Nadu
As of 2024, Tamil Nadu has the highest number of operational Special Economic Zones (SEZs) in India, with 54, followed by Telangana with 37 and Maharashtra with 37 and Karnataka with 34.