1.

Trade between two countries can be useful if cost ratios of goods are:
A. Undetermined
B. Decreasing
C. Equal
D. Different
Answer: D
2. The term Euro Currency market refers to
A. The international foreign exchange market
B. The market where the borrowing and lending of currencies take place
outside the country of issue
C. The countries which have adopted Euro as their currency
D. The market in which Euro is exchanged for other currencies
Answer: B
3. Which of the following theories suggests that firms seek to penetrate
new markets over time?
A.Imperfect Market Theory
B.Product cycle theory
C. Theory of Comparative Advantage
D. None of the above
Answer: B
4.Dumping refers to:
A. Reducing tariffs
B. Sale of goods abroad at low a price, below their cost and price in home
market
C. Buying goods at low prices abroad and selling at higher prices locally
D. Expensive goods selling for low prices
Answer: B
5. International trade and domestic trade differ because of:
A. Different government policies
B. Immobility of factors
C. Trade restrictions
D. All of the above
Answer: D
6. The margin for a currency future should be maintained with the clearing
house by
A. The seller
B. The buyer
C. Either the buyer or the seller as per the agreement between them
D. Both the buyer and the seller
Answer: D
7.The following statement with respect to currency option is wrong
A.Foreign currency- Rupee option is available in India
B.An American option can be executed on any day during its currency
C.Put option gives the buyer the right to sell the foreign currency
D.Call option will be used by exporters
Answer: D
8. Govt. policy about exports and imports is called:
A. Commercial policy
B. Fiscal policy
C. Monetary policy
D. Finance policy
Answer: A
9.Which of the following is international trade:
A. Trade between countries
B. Trade between regions
C. Trade between provinces
D. Both (b) and (c)
Answer: A
10. Market in which currencies buy and sell and their prices settle on is
called the
A.International bond market
B.International capital market
C.Foreign exchange market
D. Eurocurrency market
Answer: C
11. one of the following is international trade?

A. Trade between countries

B. Trade between regions
C. Trade between provinces
D. Both B and C
E. None of these
Answer -A
12. In trade, Transportation cost affects____.
A. pattern of trade
B. Global supply chains
C. boundaries between tradable and non-tradable goods
D. Both A and B
E. All of these
Answer -E
13. one of the following is NOT an advantage of international trade?
A. Import of defense material
B. Dependence on foreign countries
C. Export of surplus production
D. Availability of cheap raw materials
E. None of these
Answer -B
14. In trade policies _____limits specified the number of goods to
be imported at one tariff rate.
A. Specific tariff
B. Import tariff
C. Quota
D. Both A and B
E. None of these
Answer -C
15. We can trade between the two countries and this trade is very
helpful if the cost ratios of goods are____.
A. Decreasing
B. Undetermined
C. Different
D. Equal
E. None of these
Answer -C
16. Charter of Human Rights adopted in____year
A. 1948
B. 1952
C. 1947
D. None of these
Answer -A
7. Two countries gain foreign trade with____.
A. Tariff rates are different
B. Cost ratios are different
C. Price ratios are different
D. Both B and C
E. None of these
Answer -D
18. Conference of Bogota introduced in____year
A. 1948
B. 1935
C. 1956
D. None of these
Answer -A
19. one of the following is the Term of trade of a country
A. The ratio of import duties
B. The ratio of goods exported and imported
C. The ratio of prices of exports and imports
D. Both A and C
E. None of these
Answer -C
20. _____is the father of International Law.
A. Suerez
B. Oppenhein
C. Hago Grotius
D. Both A and B
E. None of these
Answer - C
21. one of the following policy about exports and imports?
A. Fiscal policy
B. Monetary policy
C. Commercial policy
D. Both A and B
E. Finance policy
Answer -C