International Trade
20 Practice MCQs available for CA Foundation
Paper
Paper 4: Business Economics
Exam Weightage
10%
Key Topics
Theories, Trade Policy, Exchange Rates
This chapter explores trade between nations — why countries trade, the theories of Absolute and Comparative Advantage, Balance of Payments, Exchange Rate systems (Fixed vs Flexible), and India's trade policy including tariffs, quotas, and WTO rules.
Exam Strategy Tip
Understand Comparative Advantage theory thoroughly — it's the foundation of international trade. Also focus on the Balance of Payments structure and what causes deficits.
Comparison Tables
All 20 Questions
161
Comparative Cost Advantage theory was given by:
MCQ162
Heckscher-Ohlin theory explains trade based on:
MCQ163
Which is a tariff barrier?
MCQ164
Anti-dumping duty is imposed when:
MCQ165
Devaluation of currency encourages:
MCQ166
WTO was established in:
MCQ167
Exchange rate determined by market forces is called:
MCQ168
FDI stands for:
MCQ169
Current Account of Balance of Payments includes:
MCQ170
Which of the following is NOT a form of economic integration?
MCQ171
GATT was replaced by:
MCQ172
Protectionism aims to protect:
MCQ173
Which theory emphasizes absolute cost advantage?
MCQ174
Tariffs generally:
MCQ175
Autarky means:
MCQ176
TRIPS is related to:
MCQ177
Appreciation of domestic currency makes imports:
MCQ178
Special Drawing Rights (SDRs) are created by:
MCQ179
Infant Industry Argument supports:
MCQ180
Balance of Trade refers to:
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