1. Which of the following best describes international trade?

a) Trade that occurs only

within a country b) Trade between two or more countries c) Trade between cities
within the same country d) Trade between regions within a country
2. Which of the following is NOT a benefit of international trade? a) Increased
competition leading to better quality products b) Access to a wider variety of goods
and services c) Decreased specialization d) Economic growth and development
3. What is a tariff? a) A tax on imports or exports b) A subsidy provided to domestic
producers c) A restriction on the quantity of imports d) A trade agreement between
two countries
4. Which theory suggests that countries should specialize in the production of goods and
services they can produce most efficiently and trade with other countries for goods
and services they cannot produce as efficiently? a) Theory of Absolute Advantage b)
Theory of Comparative Advantage c) Theory of Opportunity Cost d) Theory of
Perfect Competition
5. Which organization facilitates international trade negotiations and sets rules for trade
among its member countries? a) World Health Organization (WHO) b) International
Monetary Fund (IMF) c) World Trade Organization (WTO) d) United Nations (UN)
6. What is a trade deficit? a) When a country's exports exceed its imports b) When a
country's imports exceed its exports c) When a country's exports and imports are
equal d) When a country has no trade relations with other nations
7. Which term refers to the total value of a country's exports minus the total value of its
imports? a) Trade balance b) Trade surplus c) Trade deficit d) Balance of payments
8. Which of the following is a non-tariff barrier to trade? a) Quotas b) Embargoes c)
Subsidies d) Free trade agreements
9. What does FOB stand for in international trade? a) Free On Board b) Freight On
Board c) Forward On Balance d) Foreign Origin Business
10. Which of the following is NOT a factor affecting comparative advantage? a) Natural
resources b) Labor productivity c) Technology d) Government regulations
Answers:
1. b) Trade between two or more countries
2. c) Decreased specialization
3. a) A tax on imports or exports
4. b) Theory of Comparative Advantage
5. c) World Trade Organization (WTO)
6. b) When a country's imports exceed its exports
7. c) Trade deficit
8. a) Quotas
 9. a) Free On Board
10. d) Government regulations
1. According to the Theory of Absolute Advantage developed by Adam Smith, a country
should specialize in producing goods and services in which it: a) Has the highest
opportunity cost b) Has the lowest opportunity cost c) Has the highest production
costs d) Has the lowest production costs
2. The Theory of Comparative Advantage, proposed by David Ricardo, argues that
countries should specialize in producing goods and services in which they have: a)
The absolute highest production costs b) The absolute lowest production costs c) The
comparative advantage d) The absolute advantage
3. The Heckscher-Ohlin model suggests that countries will export goods that: a) Require
a high level of technology b) Use abundant factors of production c) Are produced with
scarce resources d) Have a high level of demand in the domestic market
4. According to the Product Life Cycle Theory, in which stage of a product's life cycle is
it likely to be produced in the country where it was invented and first introduced? a)
Introduction stage b) Growth stage c) Maturity stage d) Decline stage
5. The New Trade Theory suggests that countries may specialize in the production of
certain goods due to: a) Differences in factor endowments b) Economies of scale and
network effects c) Comparative advantage in technology d) Government regulations
favoring domestic production
6. According to the Porter's Diamond Model, which of the following is NOT considered
a determinant of national competitive advantage? a) Factor conditions b) Demand
conditions c) Firm strategy, structure, and rivalry d) Exchange rate fluctuations
7. The Linder hypothesis proposes that countries with similar levels of per capita income
are likely to: a) Trade more with each other b) Trade less with each other c) Have no
impact on their trade relations d) Experience higher trade barriers
8. Which trade theory emphasizes the importance of innovation and technological
progress in driving international trade? a) Theory of Absolute Advantage b) Theory of
Comparative Advantage c) New Trade Theory d) Heckscher-Ohlin Model
9. According to the Balassa-Samuelson effect, countries with higher productivity growth
in the tradable goods sector are likely to experience: a) A decrease in their trade
deficit b) An increase in their trade surplus c) A decrease in their domestic inflation
rate d) An increase in their real exchange rate
10. The Gravity Model of Trade suggests that the volume of trade between two countries
is directly proportional to: a) The geographic distance between them b) Their
respective levels of economic development c) Their cultural similarities d) The size of
their populations
Answers:
1. b) Has the lowest opportunity cost
2. c) The comparative advantage
3. b) Use abundant factors of production
4. a) Introduction stage
5. b) Economies of scale and network effects
6. d) Exchange rate fluctuations
7. a) Trade more with each other
8. c) New Trade Theory
9. d) An increase in their real exchange rate
10. d) The size of their populations
1. Which of the following is a primary driver of international trade? a) Government
regulations b) Cultural differences c) Comparative advantage d) Language barriers
2. Which economic concept suggests that countries should specialize in the production
of goods and services they can produce most efficiently and trade with other countries
for goods and services they cannot produce as efficiently? a) Theory of Absolute
Advantage b) Theory of Comparative Advantage c) Theory of Factor Endowments d)
Theory of Perfect Competition
3. Which of the following technological advancements has significantly facilitated
international trade by reducing communication costs and improving logistics? a)
Steam engine b) Internet and digital technologies c) Automobiles d) Printing press
4. Which factor of production is considered a driver of international trade as countries
tend to export goods that intensively use the factor that is relatively abundant within
their borders? a) Labor b) Capital c) Land d) Entrepreneurship
5. Which international trade theory suggests that countries may benefit from trade even
if they do not have an absolute advantage in producing any goods? a) Theory of
Comparative Advantage b) Theory of Absolute Advantage c) Theory of Factor
Proportions d) Theory of New Trade
6. Which of the following is NOT typically considered a cultural driver of international
trade? a) Language similarities b) Religion c) Economic policies d) Social norms and
values
7. Which type of government policy directly influences the flow of goods and services
across borders by imposing taxes on imports and exports? a) Monetary policy b)
Fiscal policy c) Trade policy d) Industrial policy
8. Which economic concept describes the situation when a country's total exports exceed
its total imports, resulting in a positive balance of trade? a) Trade deficit b) Trade
surplus c) Balance of payments d) Current account deficit
9. Which trade theory emphasizes the role of economies of scale, product differentiation,
and first-mover advantages in shaping patterns of international trade? a) Theory of
 Absolute Advantage b) Theory of Comparative Advantage c) New Trade Theory d)
Factor Endowment Theory
10. Which factor contributes to the globalization of production by enabling companies to
source components and services from different countries to achieve cost savings and
efficiency? a) Localization b) Outsourcing c) Insourcing d) Franchising
Answers:
1. c) Comparative advantage
2. b) Theory of Comparative Advantage
3. b) Internet and digital technologies
4. a) Labor
5. d) Theory of New Trade
6. c) Economic policies
7. c) Trade policy
8. b) Trade surplus
9. c) New Trade Theory
10. b) Outsourcing
1. Which of the following is a common form of trade barrier that imposes additional
costs on imported goods, thus making them more expensive for consumers? a) Export
subsidies b) Quotas c) Free trade agreements d) Trade liberalization
2. Which type of trade barrier restricts the quantity of a particular good that can be
imported into a country during a specified period? a) Tariff b) Embargo c) Quota d)
Dumping
3. Which organization oversees the enforcement of international trade agreements and
aims to reduce trade barriers through negotiations? a) International Monetary Fund
(IMF) b) World Health Organization (WHO) c) World Trade Organization (WTO) d)
Organization of the Petroleum Exporting Countries (OPEC)
4. Which term refers to the practice of selling goods in a foreign market at a price lower
than their production cost or domestic market price, often to gain market share? a)
Dumping b) Subsidies c) Tariffs d) Trade liberalization
5. Which factor contributes to the imposition of non-tariff barriers such as product
standards, safety regulations, and licensing requirements? a) Promoting free trade
agreements b) Harmonizing international trade policies c) Protecting domestic
industries d) Encouraging foreign investment
6. Which trade policy aims to protect domestic industries from foreign competition by
imposing restrictions on imports or providing financial assistance to domestic
producers? a) Import substitution b) Export promotion c) Trade liberalization d)
Foreign direct investment
 7. Which term describes the situation when a country retaliates against another country's
trade policies by imposing similar trade restrictions on its imports? a) Protectionism
b) Tariff escalation c) Trade retaliation d) Preferential trade agreement
8. Which of the following is NOT a common argument in favor of trade protectionism?
a) Protecting domestic jobs b) Promoting economic growth c) Preventing dumping
practices d) Encouraging innovation and competitiveness
9. Which type of trade barrier involves the complete prohibition of trade with a
particular country or region? a) Quota b) Tariff c) Embargo d) Dumping
10. Which term refers to the government's use of regulations, taxes, and subsidies to
influence the quantity and composition of goods and services produced and traded
internationally? a) Trade liberalization b) Trade policy c) Comparative advantage d)
Trade surplus
Answers:
1. a) Export subsidies
2. c) Quota
3. c) World Trade Organization (WTO)
4. a) Dumping
5. c) Protecting domestic industries
6. a) Import substitution
7. c) Trade retaliation
8. b) Promoting economic growth
9. c) Embargo
10. b) Trade policy
1. Which of the following recent trends has significantly influenced the pattern of
international trade by allowing companies to expand their global reach and reduce
costs? a) Regional trade agreements b) Trade liberalization c) Digitalization and e-
commerce d) Protectionist policies
2. Which factor has contributed to the rise of global value chains, where different stages
of production are dispersed across different countries? a) Increased government
intervention in trade b) Decline in international migration c) Advances in
transportation and communication technology d) Decrease in foreign direct
investment
3. What recent geopolitical development has affected international trade by disrupting
supply chains and increasing trade tensions between major economies? a) Rise of
global terrorism b) Outbreak of pandemics c) Trade wars and tariffs d) Advancements
in renewable energy
 4. Which of the following regions has experienced significant growth in intra-regional
trade due to the formation of economic blocs and trade agreements? a) North America
b) Europe c) Asia-Pacific d) Africa
5. Which recent phenomenon has led to concerns about data privacy, intellectual
property rights, and the digital divide in international trade? a) Rise of automation b)
Expansion of multinational corporations c) Digitalization and e-commerce d)
Decrease in foreign direct investment
6. Which sector has witnessed a surge in international trade activities due to increased
demand for services such as tourism, education, and financial services? a)
Manufacturing b) Agriculture c) Services d) Mining
7. What recent trade policy shift has led to the renegotiation or withdrawal from several
international trade agreements, impacting global trade dynamics? a) Expansion of free
trade zones b) Embrace of protectionist measures c) Promotion of multilateral
agreements d) Facilitation of cross-border investment
8. Which recent development in international trade has highlighted the importance of
sustainability and ethical sourcing practices? a) Increase in global protectionism b)
Emergence of digital trade platforms c) Growth of fair trade movements d) Expansion
of global value chains
9. Which recent trade trend emphasizes the importance of environmental considerations
and aims to reduce carbon emissions associated with the transportation of goods? a)
Green trade agreements b) Trade facilitation agreements c) Bilateral investment
treaties d) Regional trade blocs
10. What recent shift in consumer behavior has influenced international trade patterns by
increasing demand for ethically sourced products and sustainable production
practices? a) Preference for luxury goods b) Adoption of fast fashion trends c)
Embrace of e-commerce platforms d) Focus on conscious consumption
Answers:
1. c) Digitalization and e-commerce
2. c) Advances in transportation and communication technology
3. c) Trade wars and tariffs
4. c) Asia-Pacific
5. c) Digitalization and e-commerce
6. c) Services
7. b) Embrace of protectionist measures
8. c) Growth of fair trade movements
9. a) Green trade agreements
10. d) Focus on conscious consumption
 1. How does international trade contribute to economic growth? a) By increasing
unemployment rates b) By reducing access to foreign markets c) By promoting
specialization and efficiency d) By decreasing the productivity of domestic industries
2. Which of the following is NOT a potential benefit of foreign trade on economic
growth? a) Increased market size for domestic producers b) Access to a wider variety
of goods and services c) Encouragement of domestic monopolies d) Technological
advancements through knowledge transfer
3. Which economic theory suggests that countries should specialize in producing goods
and services they can produce most efficiently and trade with other countries for
goods and services they cannot produce as efficiently? a) Theory of Comparative
Advantage b) Theory of Absolute Advantage c) Theory of Factor Proportions d)
Theory of Trade Imbalances
4. Which factor is essential for realizing the potential benefits of international trade on
economic growth? a) High levels of protectionism b) Low levels of technological
innovation c) Adequate infrastructure and logistics d) Restricted access to foreign
markets
5. How does foreign direct investment (FDI) contribute to economic growth? a) By
reducing domestic competition b) By increasing import tariffs c) By providing access
to new technologies and managerial skills d) By limiting access to international
markets
6. Which term refers to the situation when a country's exports exceed its imports,
resulting in a positive balance of trade? a) Trade deficit b) Trade surplus c) Current
account deficit d) Current account surplus
7. Which type of trade policy is likely to hinder economic growth by restricting access to
foreign markets and increasing production costs? a) Trade liberalization b) Import
substitution c) Export promotion d) Bilateral trade agreements
8. How does foreign trade affect employment opportunities within a country? a) By
decreasing job opportunities due to foreign competition b) By promoting
specialization and creating new job sectors c) By increasing unemployment rates d)
By restricting access to foreign labor markets
9. Which of the following is a potential downside of heavy reliance on foreign trade for
economic growth? a) Diversification of domestic industries b) Vulnerability to global
economic fluctuations c) Increased technological innovation d) Strengthening of
domestic supply chains
10. How does foreign trade influence the standard of living in a country? a) By decreasing
access to foreign goods and services b) By reducing domestic consumption levels c)
By increasing purchasing power through access to a wider variety of goods and
services d) By decreasing the availability of essential goods and services
Answers:
1. c) By promoting specialization and efficiency
2. c) Encouragement of domestic monopolies
3. a) Theory of Comparative Advantage
4. c) Adequate infrastructure and logistics
5. c) By providing access to new technologies and managerial skills
6. b) Trade surplus
7. b) Import substitution
8. b) By promoting specialization and creating new job sectors
9. b) Vulnerability to global economic fluctuations
10. c) By increasing purchasing power through access to a wider variety of goods and
services
1. What does the term "balance of trade" refer to? a) The exchange of goods and services
between countries b) The difference between a country's exports and imports of goods
c) The total value of a country's exports d) The total value of a country's imports
2. A positive balance of trade occurs when: a) Exports exceed imports b) Imports exceed
exports c) Exports equal imports d) Both imports and exports decrease
3. Which of the following statements best describes a trade surplus? a) A country exports
more goods than it imports b) A country imports more goods than it exports c) A
country's exports and imports are equal d) A country's imports increase while exports
remain constant
4. What is the significance of a trade deficit? a) It indicates a strong economy and high
levels of domestic consumption b) It suggests that a country is exporting more than it
is importing c) It may indicate that a country is consuming more than it is producing
d) It implies that a country's exports are undervalued in international markets
5. Which factor could contribute to a trade deficit? a) Increased demand for domestic
goods in foreign markets b) A decrease in domestic production capacity c) A decrease
in domestic consumption levels d) A decrease in foreign investment
6. What is the impact of a trade surplus on a country's currency value? a) It tends to
appreciate the value of the country's currency b) It tends to depreciate the value of the
country's currency c) It has no impact on the country's currency value d) It leads to
fluctuations in the country's currency value
7. Which of the following policies can a country implement to reduce a trade deficit? a)
Imposing tariffs on imports b) Encouraging domestic consumption c) Increasing
government spending d) Allowing currency depreciation
8. What is the relationship between a trade surplus and economic growth? a) A trade
surplus always leads to economic growth b) A trade surplus can contribute to
economic growth under certain conditions c) A trade surplus hinders economic growth
d) A trade surplus has no impact on economic growth
 9. Which term refers to the difference between a country's total exports and total
imports, including both goods and services? a) Balance of payments b) Trade balance
c) Current account balance d) Capital account balance
10. Which economic concept is often associated with the trade balance? a) Fiscal policy
b) Monetary policy c) Comparative advantage d) Mercantilism
Answers:
1. b) The difference between a country's exports and imports of goods
2. a) Exports exceed imports
3. a) A country exports more goods than it imports
4. c) It may indicate that a country is consuming more than it is producing
5. b) A decrease in domestic production capacity
6. a) It tends to appreciate the value of the country's currency
7. a) Imposing tariffs on imports
8. b) A trade surplus can contribute to economic growth under certain conditions
9. b) Trade balance
10. d) Mercantilism
1. What does the term "balance of payments" refer to? a) The difference between a
country's exports and imports of goods b) The difference between a country's income
from exports and its expenditure on imports c) The total value of a country's exports
d) The total value of a country's imports
2. Which of the following components is NOT included in the balance of payments? a)
Current account b) Capital account c) Trade balance d) Fiscal deficit
3. What does a surplus in the current account of the balance of payments indicate? a)
Exports exceed imports of goods and services b) Imports exceed exports of goods and
services c) Capital outflows exceed capital inflows d) A deficit in the capital account
4. Which of the following is a component of the current account? a) Foreign direct
investment b) Official reserves c) Tourism receipts d) Loans and grants
5. A deficit in the capital account of the balance of payments may indicate: a) A decrease
in foreign investment b) An increase in domestic savings c) A surplus in the current
account d) An increase in government spending
6. Which of the following transactions would be recorded as a credit in the balance of
payments? a) Payment for imports of goods and services b) Receipt of income from
foreign investments c) Purchase of foreign assets by domestic residents d) Repayment
of foreign loans by the government
7. How does a surplus in the capital account affect a country's foreign exchange
reserves? a) It decreases foreign exchange reserves b) It increases foreign exchange
 reserves c) It has no impact on foreign exchange reserves d) It leads to fluctuations in
foreign exchange reserves
8. What does the financial account of the balance of payments measure? a) The
difference between a country's exports and imports of goods and services b) The flow
of capital into and out of a country c) The total value of a country's exports d) The
total value of a country's imports
9. Which of the following would NOT be considered a capital account transaction? a)
Foreign direct investment b) Portfolio investment c) Trade in goods and services d)
Official reserves
10. What does a deficit in the balance of payments imply? a) The country is exporting
more than it is importing b) The country is receiving more income from abroad than it
is paying out c) The country is spending more on imports and foreign investments
than it is earning from exports and foreign investments d) The country's foreign
exchange reserves are increasing
Answers:
1. b) The difference between a country's income from exports and its expenditure on
imports
2. d) Fiscal deficit
3. a) Exports exceed imports of goods and services
4. c) Tourism receipts
5. a) A decrease in foreign investment
6. b) Receipt of income from foreign investments
7. b) It increases foreign exchange reserves
8. b) The flow of capital into and out of a country
9. c) Trade in goods and services
10. c) The country is spending more on imports and foreign investments than it is earning
from exports and foreign investments
1. What is the primary goal of free trade? a) To restrict international commerce b) To
promote economic self-sufficiency c) To eliminate barriers to the exchange of goods
and services d) To increase tariffs and quotas on imports
2. Which of the following is NOT a characteristic of free trade? a) Absence of tariffs and
quotas b) Minimal government intervention in trade c) Protectionist policies to shield
domestic industries d) Promotion of competition in the global market
3. How does free trade benefit consumers? a) By limiting the variety of goods available
in the market b) By reducing the cost of imported goods c) By increasing domestic
monopolies d) By promoting inefficiency in domestic industries
 4. Which international organization advocates for free trade and facilitates negotiations
to reduce trade barriers? a) International Monetary Fund (IMF) b) World Health
Organization (WHO) c) World Trade Organization (WTO) d) United Nations (UN)
5. How does free trade contribute to economic growth? a) By restricting competition and
innovation b) By promoting specialization and efficiency c) By increasing
government subsidies for domestic industries d) By limiting access to foreign markets
6. Which theory suggests that countries should specialize in the production of goods and
services they can produce most efficiently and trade with other countries for goods
and services they cannot produce as efficiently? a) Theory of Absolute Advantage b)
Theory of Comparative Advantage c) Theory of Protectionism d) Theory of
Mercantilism
7. What role do tariffs and quotas play in free trade? a) They encourage domestic
production and reduce imports b) They promote international cooperation and trade
liberalization c) They serve as barriers to free trade by restricting imports d) They
have no impact on international commerce
8. How does free trade affect job creation? a) It leads to unemployment due to increased
competition from foreign labor b) It encourages innovation and the creation of new
industries c) It reduces job opportunities by protecting inefficient domestic industries
d) It has no impact on employment levels
9. Which term describes an agreement between countries to eliminate trade barriers and
promote free trade among themselves? a) Protectionism b) Free trade agreement c)
Trade embargo d) Import substitution
10. Which argument is often used against free trade? a) It fosters economic growth and
development b) It leads to environmental degradation and exploitation of labor c) It
encourages innovation and technological advancement d) It promotes global
cooperation and peace
Answers:
1. c) To eliminate barriers to the exchange of goods and services3
2. c) Protectionist policies to shield domestic industries
3. b) By reducing the cost of imported goods
4. c) World Trade Organization (WTO)
5. b) By promoting specialization and efficiency
6. b) Theory of Comparative Advantage
7. c) They serve as barriers to free trade by restricting imports
8. b) It encourages innovation and the creation of new industries
9. b) Free trade agreement
10. b) It leads to environmental degradation and exploitation of labor
 1. Which of the following is NOT a form of international trade restriction? a) Tariffs b)
Quotas c) Free trade agreements d) Embargoes
2. What is the primary purpose of imposing tariffs on imported goods? a) To encourage
foreign investment b) To promote economic growth c) To protect domestic industries
d) To reduce government revenue
3. Which type of trade restriction involves setting a maximum limit on the quantity of a
specific good that can be imported into a country? a) Tariff b) Quota c) Embargo d)
Dumping
4. What is the main disadvantage of imposing quotas on imports? a) Increased
competition for domestic producers b) Higher prices for consumers due to limited
supply c) Enhanced consumer choice and variety d) Encouragement of international
cooperation
5. Which term refers to the complete prohibition of trade with a particular country or
region? a) Tariff b) Quota c) Embargo d) Dumping
6. Which of the following trade restrictions is imposed by a government to protect
domestic industries from foreign competition by imposing taxes on imports? a) Quota
b) Embargo c) Tariff d) Dumping
7. What is the primary goal of export subsidies? a) To increase the competitiveness of
domestic industries in the global market b) To promote fair competition between
domestic and foreign producers c) To discourage exports and promote domestic
consumption d) To reduce government revenue
8. Which type of trade restriction is imposed to restrict the export of certain goods to
specific countries for political or security reasons? a) Tariff b) Quota c) Embargo d)
Dumping
9. How does a trade embargo differ from other forms of trade restrictions? a) It is
imposed unilaterally by a single country b) It only affects imports, not exports c) It is
typically used to protect infant industries d) It allows for limited trade under specific
conditions
10. Which of the following is an example of a non-tariff barrier to trade? a) Import quotas
b) Export subsidies c) Voluntary export restraints d) Free trade agreements
Answers:
1. c) Free trade agreements
2. c) To protect domestic industries
3. b) Quota
4. b) Higher prices for consumers due to limited supply
5. c) Embargo
6. c) Tariff
7. a) To increase the competitiveness of domestic industries in the global market
8. c) Embargo
9. a) It is imposed unilaterally by a single country
10. a) Import quotas
1. What is the primary purpose of the International Monetary Fund (IMF)? a) To
promote international trade b) To provide loans and financial assistance to developing
countries c) To regulate global financial markets d) To enforce trade agreements
between member countries
2. Which of the following institutions is NOT part of the Bretton Woods system
established in 1944? a) World Bank b) International Monetary Fund (IMF) c) World
Trade Organization (WTO) d) United Nations (UN)
3. What is the main function of the IMF's surveillance activities? a) Providing financial
assistance to member countries b) Monitoring and assessing global economic
developments and policies c) Regulating international trade agreements d)
Distributing aid to developing countries
4. How does the IMF assist member countries during financial crises? a) By providing
grants to cover budget deficits b) By offering technical assistance and policy advice c)
By purchasing and selling foreign currencies d) By subsidizing exports to boost
economic growth
5. Which term describes the process through which the IMF evaluates a country's
economic policies and financial stability? a) Financial intervention b) Structural
adjustment c) Surveillance d) Stabilization
6. What is the primary source of funding for the IMF's lending operations? a) Donations
from member countries b) Proceeds from global trade tariffs c) Quota subscriptions
from member countries d) Interest earned on foreign exchange reserves
7. How does the IMF promote exchange rate stability among member countries? a) By
fixing exchange rates to a common currency b) By intervening in currency markets to
influence exchange rates c) By imposing tariffs on imports and exports d) By
regulating capital flows between countries
8. Which of the following is NOT a condition typically associated with IMF lending
programs? a) Fiscal austerity measures b) Structural reforms c) Currency devaluation
d) Trade liberalization
9. How does the IMF support low-income countries? a) By providing concessional loans
and debt relief b) By offering preferential trade agreements c) By establishing
regional development banks d) By financing large-scale infrastructure projects
10. What is the voting power of member countries in the IMF based on? a) Their
contributions to the organization's budget b) Their population size c) Their level of
economic development d) A combination of factors including economic size and
financial contributions
Answers:
1. b) To provide loans and financial assistance to developing countries
2. c) World Trade Organization (WTO)
3. b) Monitoring and assessing global economic developments and policies
4. b) By offering technical assistance and policy advice
5. c) Surveillance
6. c) Quota subscriptions from member countries
7. b) By intervening in currency markets to influence exchange rates
8. c) Currency devaluation
9. a) By providing concessional loans and debt relief
10. d) A combination of factors including economic size and financial contributions
1. What is the primary goal of the World Bank? a) To promote international trade b) To
provide loans and grants for infrastructure projects in developing countries c) To
regulate global financial markets d) To enforce environmental regulations
2. When was the World Bank established? a) 1914 b) 1944 c) 1945 d) 1950
3. What is the official name of the institution commonly referred to as the World Bank?
a) International Monetary Fund (IMF) b) World Bank Group c) United Nations
Development Programme (UNDP) d) International Finance Corporation (IFC)
4. What is the World Bank's main focus area? a) Promoting international trade
agreements b) Providing financial assistance for education and healthcare projects c)
Financing infrastructure and development projects in low and middle-income
countries d) Regulating global monetary policies
5. How does the World Bank raise funds to finance its operations? a) By issuing bonds
in international financial markets b) Through membership fees paid by member
countries c) By soliciting donations from private corporations d) By selling goods and
services to member countries
6. Which of the following is NOT one of the institutions that make up the World Bank
Group? a) International Development Association (IDA) b) International Finance
Corporation (IFC) c) International Monetary Fund (IMF) d) International Bank for
Reconstruction and Development (IBRD)
7. What is the primary role of the International Development Association (IDA)? a) To
provide loans and grants to middle-income countries b) To provide concessional loans
and grants to the world's poorest countries c) To regulate global financial markets d)
To promote international trade agreements
8. How does the World Bank support sustainable development? a) By financing projects
that contribute to economic growth and poverty reduction b) By imposing
 environmental regulations on member countries c) By promoting unrestricted
industrial development d) By investing in fossil fuel projects
9. What criteria does the World Bank use to determine eligibility for its financial
assistance? a) Membership in the United Nations b) Economic size and level of
development c) Political stability and military strength d) Cultural heritage and
historical significance
10. What is the voting power of member countries in the World Bank based on? a) Their
contributions to the organization's budget b) Their population size c) Their level of
economic development d) A combination of factors including economic size and
financial contributions
Answers:
1. b) To provide loans and grants for infrastructure projects in developing countries
2. c) 1945
3. b) World Bank Group
4. c) Financing infrastructure and development projects in low and middle-income
countries
5. a) By issuing bonds in international financial markets
6. c) International Monetary Fund (IMF)
7. b) To provide concessional loans and grants to the world's poorest countries
8. a) By financing projects that contribute to economic growth and poverty reduction
9. b) Economic size and level of development
10. d) A combination of factors including economic size and financial contributions
1. What is the primary objective of the World Trade Organization (WTO)? a) To regulate
global financial markets b) To provide financial assistance to developing countries c)
To promote and facilitate international trade d) To enforce environmental regulations
2. When was the World Trade Organization (WTO) established? a) 1944 b) 1947 c) 1994
d) 2000
3. What replaced the General Agreement on Tariffs and Trade (GATT) when the World
Trade Organization (WTO) was established? a) International Monetary Fund (IMF) b)
World Bank Group c) World Trade Organization (WTO) d) United Nations
Development Programme (UNDP)
4. How does the World Trade Organization (WTO) resolve trade disputes between
member countries? a) By imposing sanctions on non-compliant countries b) Through
mediation and arbitration panels c) By providing financial compensation to affected
parties d) By revoking membership of non-compliant countries
5. Which principle forms the basis of the World Trade Organization's trading system? a)
Protectionism b) Non-discrimination c) Mercantilism d) Subsidization
 6. What is the main function of the WTO's Trade Policy Review Mechanism (TPRM)?
a) To regulate global financial markets b) To monitor and evaluate member countries'
trade policies c) To provide financial assistance to developing countries d) To enforce
environmental regulations
7. What is the purpose of the WTO's Trade Facilitation Agreement (TFA)? a) To reduce
trade barriers and simplify customs procedures b) To impose tariffs on imports and
exports c) To regulate global financial markets d) To promote protectionist policies
8. How does the WTO promote transparency in international trade? a) By imposing
secrecy on trade negotiations b) By publishing trade-related information and
agreements c) By restricting access to trade-related data d) By limiting member
countries' participation in trade discussions
9. What is the role of the WTO's Dispute Settlement Body (DSB)? a) To enforce
environmental regulations b) To provide financial assistance to developing countries
c) To resolve trade disputes between member countries d) To regulate global financial
markets
10. What is the voting system used by the World Trade Organization (WTO)? a) One
country, one vote b) Weighted voting based on economic size c) Consensus-based
decision-making d) Secret ballot voting
Answers:
1. c) To promote and facilitate international trade
2. c) 1994
3. c) World Trade Organization (WTO)
4. b) Through mediation and arbitration panels
5. b) Non-discrimination
6. b) To monitor and evaluate member countries' trade policies
7. a) To reduce trade barriers and simplify customs procedures
8. b) By publishing trade-related information and agreements
9. c) To resolve trade disputes between member countries
10. c) Consensus-based decision-making
1. When was the North American Free Trade Agreement (NAFTA) implemented? a)
1989 b) 1994 c) 2000 d) 2005
2. Which countries are members of the North American Free Trade Agreement
(NAFTA)? a) United States and Canada b) United States, Canada, and Mexico c)
United States and Mexico d) Canada and Mexico
3. What is the primary objective of NAFTA? a) To regulate global financial markets b)
To promote and facilitate international trade within North America c) To provide
financial assistance to developing countries d) To enforce environmental regulations
 4. What impact did NAFTA have on trade tariffs among member countries? a) It
eliminated tariffs on all goods traded between member countries b) It significantly
reduced but did not eliminate tariffs on most goods c) It had no effect on trade tariffs
d) It increased tariffs on certain goods
5. How did NAFTA affect investment flows among member countries? a) It restricted
foreign investment to protect domestic industries b) It facilitated investment flows by
removing barriers and providing protections for investors c) It discouraged investment
by imposing high taxes and regulations d) It had no impact on investment flows
6. Which industry was particularly affected by NAFTA due to increased competition
from Mexico? a) Agriculture b) Technology c) Healthcare d) Automotive
7. What is the main criticism of NAFTA? a) It led to job losses in certain industries in
the United States b) It favored Mexico over the United States and Canada c) It
imposed excessive environmental regulations d) It had no significant economic
benefits
8. How did NAFTA impact labor markets in member countries? a) It resulted in higher
wages and improved working conditions b) It led to job displacement and downward
pressure on wages in certain sectors c) It had no impact on labor markets d) It
increased unemployment rates in all member countries
9. Which of the following sectors experienced growth as a result of NAFTA? a)
Traditional manufacturing industries b) Service industries c) Agriculture d) Heavy
industries
10. What is the successor to NAFTA, which was negotiated and signed in 2018? a) United
States-Mexico-Canada Agreement (USMCA) b) Trans-Pacific Partnership (TPP) c)
European Union-Canada Comprehensive Economic and Trade Agreement (CETA) d)
Mercosur Free Trade Agreement
Answers:
1. b) 1994
2. b) United States, Canada, and Mexico
3. b) To promote and facilitate international trade within North America
4. a) It eliminated tariffs on all goods traded between member countries
5. b) It facilitated investment flows by removing barriers and providing protections for
investors
6. d) Automotive
7. a) It led to job losses in certain industries in the United States
8. b) It led to job displacement and downward pressure on wages in certain sectors
9. b) Service industries
10. a) United States-Mexico-Canada Agreement (USMCA)
 1. When was the European Union (EU) established? a) 1945 b) 1957 c) 1973 d) 1992
2. How many member countries are currently part of the European Union (EU)? a) 15 b)
27 c) 35 d) 50
3. What was the initial purpose of the European Economic Community (EEC), one of
the precursors to the European Union (EU)? a) To promote cultural exchanges
between European countries b) To provide financial assistance to developing
countries c) To create a common market among member countries d) To regulate
global financial markets
4. Which of the following treaties laid the foundation for the modern European Union
(EU)? a) Treaty of Rome b) Treaty of Versailles c) Treaty of Lisbon d) Maastricht
Treaty
5. What is the primary institution responsible for the legislative process within the
European Union (EU)? a) European Commission b) European Parliament c) European
Council d) European Central Bank
6. Which of the following is NOT one of the main policy areas covered by the European
Union (EU)? a) Agriculture b) Defense c) Environment d) Trade
7. What is the Schengen Area? a) A zone within the European Union with a common
currency b) A region where EU laws do not apply c) An area comprising European
countries with no border controls d) A territory under dispute between EU member
states
8. Which of the following is the official currency of the European Union (EU)? a) Euro
b) Dollar c) Pound d) Yen
9. What is the purpose of the European Central Bank (ECB)? a) To regulate EU member
states' domestic policies b) To issue and regulate the euro currency c) To enforce
environmental regulations d) To provide financial assistance to developing countries
10. What is the role of the European Commission within the European Union (EU)? a) To
represent the interests of individual member states b) To propose and enforce EU
legislation c) To coordinate military operations among member states d) To provide
humanitarian aid to non-EU countries
Answers:
1. b) 1957
2. b) 27
3. c) To create a common market among member countries
4. d) Maastricht Treaty
5. b) European Parliament
6. b) Defense
7. c) An area comprising European countries with no border controls
 8. a) Euro
9. b) To issue and regulate the euro currency
10. b) To propose and enforce EU legislation
1. When was the Association of Southeast Asian Nations (ASEAN) established? a) 1945
b) 1957 c) 1967 d) 1975
2. Which of the following countries is NOT a founding member of ASEAN? a)
Indonesia b) Malaysia c) Vietnam d) Thailand
3. What is the primary objective of the Association of Southeast Asian Nations
(ASEAN)? a) To promote cultural exchanges between member countries b) To
provide financial assistance to developing countries c) To enhance regional peace,
stability, and economic cooperation d) To regulate global financial markets
4. Which of the following treaties established ASEAN as an organization? a) Bangkok
Treaty b) Jakarta Declaration c) Treaty of Rome d) Treaty of Versailles
5. How many member countries are currently part of ASEAN? a) 5 b) 7 c) 10 d) 12
6. Which of the following is NOT one of the main pillars of ASEAN? a) Political-
Security Community b) Economic Community c) Cultural Community d) Social
Community
7. What is the ASEAN Free Trade Area (AFTA)? a) A zone within ASEAN with a
common currency b) An agreement to promote free trade among member countries c)
A region where ASEAN laws do not apply d) An area comprising ASEAN countries
with no border controls
8. Which city is the headquarters of the ASEAN Secretariat? a) Bangkok, Thailand b)
Jakarta, Indonesia c) Manila, Philippines d) Singapore
9. What is the purpose of the ASEAN Economic Community (AEC)? a) To facilitate
economic integration and growth among member countries b) To regulate
international trade agreements c) To enforce environmental regulations d) To
coordinate military operations among member states
10. What is the role of the ASEAN Summit? a) To coordinate humanitarian aid to non-
ASEAN countries b) To represent the interests of individual member states c) To
provide a platform for ASEAN leaders to discuss regional issues and initiatives d) To
propose and enforce ASEAN legislation
Answers:
1. c) 1967
2. c) Vietnam
3. c) To enhance regional peace, stability, and economic cooperation
4. b) Jakarta Declaration
5. c) 10
 6. c) Cultural Community
7. b) An agreement to promote free trade among member countries
8. b) Jakarta, Indonesia
9. a) To facilitate economic integration and growth among member countries
10. c) To provide a platform for ASEAN leaders to discuss regional issues and initiatives
1. When was the South Asian Association for Regional Cooperation (SAARC)
established? a) 1985 b) 1991 c) 1980 d) 2000
2. Which of the following countries is NOT a member of SAARC? a) Sri Lanka b)
Myanmar c) Bhutan d) Nepal
3. What is the primary objective of the South Asian Association for Regional
Cooperation (SAARC)? a) To promote cultural exchanges between member countries
b) To provide financial assistance to developing countries c) To enhance regional
cooperation and economic integration d) To regulate global financial markets
4. Which city is the headquarters of the SAARC Secretariat? a) New Delhi, India b)
Colombo, Sri Lanka c) Kathmandu, Nepal d) Dhaka, Bangladesh
5. How many member countries are currently part of SAARC? a) 6 b) 7 c) 8 d) 10
6. Which of the following is NOT one of the main areas of cooperation within SAARC?
a) Economic cooperation b) Political cooperation c) Cultural cooperation d) Military
cooperation
7. What is the purpose of the SAARC Free Trade Area (SAFTA)? a) To promote free
trade among SAARC member countries b) To establish a common currency for
SAARC countries c) To facilitate labor migration within SAARC countries d) To
regulate international trade agreements
8. What is the role of the SAARC Summit? a) To coordinate humanitarian aid to non-
SAARC countries b) To represent the interests of individual member states c) To
provide a platform for SAARC leaders to discuss regional issues and initiatives d) To
propose and enforce SAARC legislation
9. What is the primary obstacle to deeper integration and cooperation within SAARC? a)
Linguistic diversity b) Religious differences c) Political tensions and conflicts
between member countries d) Economic disparities among member countries
10. Which country is the largest economy within SAARC? a) India b) Pakistan c)
Bangladesh d) Sri Lanka
Answers:
1. a) 1985
2. b) Myanmar
3. c) To enhance regional cooperation and economic integration
4. c) Kathmandu, Nepal
5. b) 7
6. d) Military cooperation
7. a) To promote free trade among SAARC member countries
8. c) To provide a platform for SAARC leaders to discuss regional issues and initiatives
9. c) Political tensions and conflicts between member countries
10. a) India
1. Which of the following recent trends has significantly impacted global trade patterns?
a) Rise of protectionist measures b) Decrease in technological advancements c)
Stagnation in e-commerce growth d) Decline in multinational corporations
2. What is a notable trend in the volume of global trade over the past decade? a) Steady
decline due to increased trade barriers b) Rapid growth fueled by globalization c)
Fluctuations caused by geopolitical tensions d) Plateauing growth due to saturation of
markets
3. What factor has contributed to the reshaping of global supply chains in recent years?
a) Decrease in trade agreements b) Increase in labor costs in traditional manufacturing
hubs c) Stagnation in technological innovation d) Expansion of trade blocs
4. Which region has emerged as a key player in global trade due to its growing consumer
market? a) North America b) Europe c) Latin America d) Asia-Pacific
5. What impact has the COVID-19 pandemic had on global trade patterns? a)
Accelerated the growth of international tourism b) Increased reliance on digital trade
platforms c) Disrupted supply chains and reduced trade volumes d) Strengthened
global cooperation in trade agreements
6. What is a notable trend in the nature of international trade agreements in recent years?
a) Decrease in preferential trade agreements b) Rise of mega-regional trade
agreements c) Stagnation in bilateral trade agreements d) Shift towards unilateral
trade policies
7. What technology has played a significant role in facilitating cross-border trade in
recent years? a) Artificial intelligence b) Blockchain c) Virtual reality d)
Nanotechnology
8. Which sector has experienced rapid growth in international trade due to the expansion
of e-commerce platforms? a) Manufacturing b) Services c) Agriculture d) Energy
9. What role have sustainability and environmental concerns played in recent trade
trends? a) Decreased focus on sustainable practices due to cost concerns b) Increased
demand for environmentally-friendly products and practices c) Stagnation in efforts to
address climate change through trade policies d) Rise of trade barriers to restrict
environmentally harmful goods
 10. What factor has contributed to the growing importance of trade in services in recent
years? a) Decline in global demand for services b) Rise of digitalization and
knowledge-based economies c) Increase in protectionist measures against service
industries d) Stagnation in technological innovation in the service sector
Answers:
1. a) Rise of protectionist measures
2. b) Rapid growth fueled by globalization
3. b) Increase in labor costs in traditional manufacturing hubs
4. d) Asia-Pacific
5. c) Disrupted supply chains and reduced trade volumes
6. b) Rise of mega-regional trade agreements
7. b) Blockchain
8. b) Services
9. b) Increased demand for environmentally-friendly products and practices
10. b) Rise of digitalization and knowledge-based economies
1. Which organization is responsible for formulating and implementing India's foreign
trade policy? a) Export-Import Bank of India (EXIM Bank) b) Reserve Bank of India
(RBI) c) Directorate General of Foreign Trade (DGFT) d) Federation of Indian Export
Organizations (FIEO)
2. What is the primary role of the Export-Import Bank of India (EXIM Bank)? a) To
provide financial assistance to importers b) To promote foreign direct investment
(FDI) in India c) To facilitate export financing and overseas investments by Indian
companies d) To regulate foreign exchange transactions
3. Which institution provides credit insurance to Indian exporters against non-payment
by overseas buyers? a) Export Credit Guarantee Corporation of India (ECGC) b)
Small Industries Development Bank of India (SIDBI) c) Indian Council of
Agricultural Research (ICAR) d) National Bank for Agriculture and Rural
Development (NABARD)
4. What is the primary function of the Directorate General of Foreign Trade (DGFT)? a)
To regulate the import and export of goods and services b) To provide financial
assistance to exporters c) To promote foreign direct investment (FDI) in India d) To
facilitate technology transfers to Indian industries
5. Which organization assists micro, small, and medium-sized enterprises (MSMEs) in
India with export promotion? a) Confederation of Indian Industry (CII) b) Indian
Institute of Foreign Trade (IIFT) c) Export Promotion Council for Handicrafts
(EPCH) d) Federation of Indian Chambers of Commerce and Industry (FICCI)
 6. What is the main objective of the Federation of Indian Export Organizations (FIEO)?
a) To regulate foreign exchange transactions b) To promote foreign direct investment
(FDI) in India c) To represent the interests of Indian exporters and facilitate export
promotion activities d) To provide credit insurance to exporters
7. Which institution provides financial assistance and support to export-oriented
industries in India? a) Ministry of Finance b) Ministry of Commerce and Industry c)
Ministry of External Affairs d) Ministry of Micro, Small and Medium Enterprises
8. What role does the Indian Institute of Foreign Trade (IIFT) play in export promotion?
a) It provides training and education in international business and trade b) It regulates
import and export transactions c) It provides credit insurance to exporters d) It
facilitates technology transfers to Indian industries
9. Which organization provides trade promotion services to Indian exporters in specific
sectors such as textiles, gems and jewelry, and electronics? a) Export Promotion
Councils (EPCs) b) National Institute of Export Management (NIEM) c) Foreign
Trade Development Board (FTDB) d) India Trade Promotion Organization (ITPO)
10. What is the primary objective of the Indian Trade Promotion Organization (ITPO)? a)
To regulate foreign exchange transactions b) To provide financial assistance to
exporters c) To organize trade fairs and exhibitions to promote Indian products and
services internationally d) To promote foreign direct investment (FDI) in India
Answers:
1. c) Directorate General of Foreign Trade (DGFT)
2. c) To facilitate export financing and overseas investments by Indian companies
3. a) Export Credit Guarantee Corporation of India (ECGC)
4. a) To regulate the import and export of goods and services
5. c) Export Promotion Council for Handicrafts (EPCH)
6. c) To represent the interests of Indian exporters and facilitate export promotion
activities
7. b) Ministry of Commerce and Industry
8. a) It provides training and education in international business and trade
9. a) Export Promotion Councils (EPCs)
10. c) To organize trade fairs and exhibitions to promote Indian products and services
internationally
1. What do projects and consultancy exports primarily involve? a) Export of physical
goods b) Export of services c) Import of technology d) Import of raw materials
2. Which of the following industries is commonly associated with projects and
consultancy exports? a) Manufacturing b) Agriculture c) Construction d) Retail
 3. What is the main purpose of projects and consultancy exports? a) To import foreign
expertise and technology b) To promote domestic consumption c) To facilitate labor
migration d) To restrict international trade
4. Which type of companies are typically involved in projects and consultancy exports?
a) Manufacturing firms b) Financial institutions c) Engineering and consultancy firms
d) Retail chains
5. What role do consultancy firms play in projects and consultancy exports? a) Providing
financial assistance to exporters b) Offering advisory services and expertise to
overseas clients c) Facilitating trade negotiations between governments d) Managing
supply chains for export-oriented industries
6. Which organization often oversees the implementation of projects and consultancy
exports? a) World Trade Organization (WTO) b) International Monetary Fund (IMF)
c) Export-Import Bank of India (EXIM Bank) d) Government agencies or ministries
7. What factors contribute to the growth of projects and consultancy exports? a)
Decrease in demand for specialized skills and expertise b) Increase in protectionist
measures c) Rise in infrastructure development projects globally d) Decline in
international trade agreements
8. How do projects and consultancy exports benefit the exporting country? a) By
reducing unemployment rates b) By generating foreign exchange earnings c) By
increasing import tariffs d) By promoting domestic consumption
9. What challenges do exporters of projects and consultancy services often face? a)
Limited access to international markets b) High demand for skilled labor c) Decrease
in project financing options d) Stringent environmental regulations
10. What strategies can exporters adopt to enhance projects and consultancy exports? a)
Diversifying service offerings b) Restricting international collaborations c) Reducing
investment in research and development d) Increasing trade barriers
Answers:
1. b) Export of services
2. c) Construction
3. a) To import foreign expertise and technology
4. c) Engineering and consultancy firms
5. b) Offering advisory services and expertise to overseas clients
6. d) Government agencies or ministries
7. c) Rise in infrastructure development projects globally
8. b) By generating foreign exchange earnings
9. a) Limited access to international markets
10. a) Diversifying service offerings
1. What is the primary objective of India's trade policy? a) To restrict international trade
b) To promote domestic consumption c) To enhance India's exports and economic
growth d) To decrease foreign direct investment
2. Which government body is primarily responsible for formulating and implementing
India's trade policy? a) Reserve Bank of India (RBI) b) Ministry of Finance c)
Ministry of Commerce and Industry d) Ministry of External Affairs
3. What is the significance of India's Foreign Trade Policy (FTP)? a) It aims to regulate
foreign exchange transactions b) It provides a framework for India's trade relations
with other countries c) It focuses on promoting domestic industries over international
trade d) It encourages imports at the expense of exports
4. What role does the Directorate General of Foreign Trade (DGFT) play in India's trade
policy? a) It regulates domestic trade within India b) It negotiates trade agreements
with other countries c) It provides financial assistance to exporters d) It implements
and enforces India's foreign trade policy
5. What approach does India's trade policy generally follow regarding tariffs and trade
barriers? a) Protectionist approach with high tariffs and trade barriers b) Free trade
approach with minimal tariffs and trade barriers c) Mixed approach with selective
tariffs and trade barriers d) Isolationist approach with no international trade
agreements
6. What are Export Promotion Councils (EPCs) and their role in Indian trade policy? a)
They regulate imports of specific goods into India b) They provide financial
assistance to importers c) They represent specific industries and promote their exports
d) They enforce environmental regulations related to exports
7. What is the significance of India's participation in regional and bilateral trade
agreements? a) It aims to restrict international trade to protect domestic industries b)
It provides access to larger markets and facilitates trade expansion c) It increases trade
barriers and tariffs on imports d) It discourages foreign direct investment
8. How does India's trade policy address issues related to intellectual property rights
(IPR)? a) By imposing strict restrictions on foreign companies' use of Indian patents
b) By strengthening enforcement mechanisms to protect intellectual property c) By
allowing free access to patented technologies to promote innovation d) By limiting the
scope of intellectual property protection
9. What role does the Ministry of Commerce and Industry play in India's trade policy? a)
It primarily focuses on regulating domestic industries b) It negotiates trade
agreements and represents India's interests in international forums c) It oversees
India's foreign exchange reserves d) It enforces labor regulations related to
international trade
10. How does India's trade policy address the balance between imports and exports? a) By
imposing restrictions on both imports and exports b) By promoting exports through
incentives and support measures c) By encouraging imports to meet domestic demand
d) By adopting an isolationist approach with minimal international trade
Answers:
1. c) To enhance India's exports and economic growth
2. c) Ministry of Commerce and Industry
3. b) It provides a framework for India's trade relations with other countries
4. d) It implements and enforces India's foreign trade policy
5. c) Mixed approach with selective tariffs and trade barriers
6. c) They represent specific industries and promote their exports
7. b) It provides access to larger markets and facilitates trade expansion
8. b) By strengthening enforcement mechanisms to protect intellectual property
9. b) It negotiates trade agreements and represents India's interests in international
forums
10. b) By promoting exports through incentives and support measures
1. What is export assistance? a) Financial aid provided to importers b) Support and
services offered to facilitate exporting activities c) Tariffs imposed on exported goods
d) Trade barriers restricting exports
2. What role do export promotion councils play in export assistance? a) Regulating
imports of specific goods b) Providing financial aid to exporters c) Representing
specific industries and promoting their exports d) Enforcing environmental
regulations related to exports
3. Which government body is responsible for providing export assistance in many
countries? a) Ministry of Finance b) Ministry of Commerce and Industry c) Ministry
of Agriculture d) Ministry of Education
4. What types of services are typically offered as part of export assistance programs? a)
Financial assistance and subsidies b) Market research and intelligence c) Export
documentation and logistics support d) All of the above
5. How do export credit agencies contribute to export assistance? a) By imposing tariffs
on imports b) By providing insurance against non-payment by overseas buyers c) By
regulating foreign exchange transactions d) By restricting access to international
markets
6. What is the primary goal of export assistance programs? a) To discourage exports and
promote domestic consumption b) To provide financial aid to importers c) To
facilitate and promote international trade d) To increase tariffs on exported goods
7. How do export assistance programs benefit exporters? a) By imposing trade barriers
and tariffs b) By providing financial incentives and support services c) By restricting
access to international markets d) By discouraging exports through regulations
8. Which organization is responsible for implementing and administering export
assistance programs in India? a) Reserve Bank of India (RBI) b) Directorate General
 of Foreign Trade (DGFT) c) Export-Import Bank of India (EXIM Bank) d) Federation
of Indian Export Organizations (FIEO)
9. How do trade missions and export promotion events contribute to export assistance?
a) By imposing trade restrictions b) By providing financial aid to exporters c) By
facilitating networking and business opportunities in foreign markets d) By regulating
export documentation
10. What is the significance of trade agreements in export assistance? a) They impose
tariffs on exported goods b) They provide access to preferential markets and reduce
trade barriers c) They restrict access to international markets d) They increase tariffs
on imported goods
Answers:
1. b) Support and services offered to facilitate exporting activities
2. c) Representing specific industries and promoting their exports
3. b) Ministry of Commerce and Industry
4. d) All of the above
5. b) By providing insurance against non-payment by overseas buyers
6. c) To facilitate and promote international trade
7. b) By providing financial incentives and support services
8. b) Directorate General of Foreign Trade (DGFT)
9. c) By facilitating networking and business opportunities in foreign markets
10. b) They provide access to preferential markets and reduce trade barriers
1. What is a marketing plan for exports? a) A plan detailing the import process b) A
strategy outlining how a company will promote and sell its products or services in
international markets c) A document regulating export tariffs d) A financial forecast
for export transactions
2. What is the purpose of a marketing plan for exports? a) To impose trade restrictions b)
To regulate foreign exchange transactions c) To facilitate trade negotiations d) To
guide a company's efforts in penetrating and succeeding in foreign markets
3. Which of the following is NOT typically included in a marketing plan for exports? a)
Market analysis b) Product development strategy c) Pricing strategy d) Domestic
distribution channels
4. What role does market analysis play in a marketing plan for exports? a) Identifying
potential export markets and target customers b) Regulating import quotas c)
Imposing trade barriers d) Determining foreign exchange rates
5. How does a pricing strategy contribute to a marketing plan for exports? a) By
increasing import tariffs b) By determining the cost of domestic distribution c) By
 setting competitive prices in international markets d) By regulating foreign exchange
transactions
6. What is the significance of promotional activities in a marketing plan for exports? a)
Promotional activities are unnecessary for exporting goods b) Promotional activities
help raise awareness and generate demand for products or services in international
markets c) Promotional activities only target domestic customers d) Promotional
activities increase import tariffs
7. Which of the following is an example of a promotional activity in export marketing?
a) Imposing trade restrictions b) Participating in international trade fairs and
exhibitions c) Setting import quotas d) Regulating foreign exchange rates
8. How do distribution channels contribute to a marketing plan for exports? a) By
imposing tariffs on exported goods b) By regulating import quotas c) By determining
how products or services reach customers in foreign markets d) By increasing trade
barriers
9. What is the importance of market entry strategies in a marketing plan for exports? a)
Market entry strategies only apply to domestic markets b) Market entry strategies help
companies identify the most effective ways to enter and establish themselves in
foreign markets c) Market entry strategies are irrelevant for exporting goods d)
Market entry strategies increase import tariffs
10. How does relationship management play a role in export marketing plans? a)
Relationship management is not relevant in international trade b) Building and
maintaining relationships with overseas partners and customers helps facilitate
successful exports c) Relationship management only applies to domestic customers d)
Relationship management increases export tariffs
Answers:
1. b) A strategy outlining how a company will promote and sell its products or services
in international markets
2. d) To guide a company's efforts in penetrating and succeeding in foreign markets
3. d) Domestic distribution channels
4. a) Identifying potential export markets and target customers
5. c) By setting competitive prices in international markets
6. b) Promotional activities help raise awareness and generate demand for products or
services in international markets
7. b) Participating in international trade fairs and exhibitions
8. c) By determining how products or services reach customers in foreign markets
9. b) Market entry strategies help companies identify the most effective ways to enter
and establish themselves in foreign markets
10. b) Building and maintaining relationships with overseas partners and customers helps
facilitate successful exports