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.
All 20 Questions
Comparative Cost Advantage theory was given by:
Heckscher-Ohlin theory explains trade based on:
Which is a tariff barrier?
Anti-dumping duty is imposed when:
Devaluation of currency encourages:
WTO was established in:
Exchange rate determined by market forces is called:
FDI stands for:
Current Account of Balance of Payments includes:
Which of the following is NOT a form of economic integration?
GATT was replaced by:
Protectionism aims to protect:
Which theory emphasizes absolute cost advantage?
Tariffs generally:
Autarky means:
TRIPS is related to:
Appreciation of domestic currency makes imports:
Special Drawing Rights (SDRs) are created by:
Infant Industry Argument supports:
Balance of Trade refers to:
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