Top 50+ Solved Foreign Trade and Balance of Payment MCQ Questions Answer
Q. Which of the following theories suggests that firms seek to penetrate newmarkets over time?
a. Imperfect Market Theory
b. Product cycle theory
c. Theory of Comparative Advantage
d. None of the above
Q. 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
Q. International trade and domestic trade differ because of:
a. Different government policies
b. Immobility of factors
c. Trade restrictions
d. All of the above
Q. The margin for a currency future should be maintained with the clearinghouse 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
Q. Govt. policy about exports and imports is called:
a. Commercial policy
b. Fiscal policy
c. Monetary policy
d. Finance policy
Q. Which of the following is international trade?
a. Trade between countries
b. Trade between regions
c. Trade between provinces
d. Both (b) and (c)
Q. Market in which currencies buy and sell and their prices settle on is called the
a. International bond market International capital market
b. Foreign exchange market
c. Eurocurrency market
d. none