Autarky means:
Options
AFree trade
BNo trade
CRestricted trade
DBilateral trade
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International TradePYQ - Nov 2020 (Inter)Question 175 of 20
All Questions Correct Answer
✅ Option b — No trade
All Options:
- AFree trade
- BNo trade
- CRestricted trade
- DBilateral trade
Detailed Solution & Explanation
To understand the concept of autarky, let's break it down:
• Autarky refers to a situation where a country does not engage in international trade, relying solely on its domestic production to meet the needs of its citizens.
• This means that the country does not import or export goods and services, making it self-sufficient.
• The concept of autarky is often discussed in the context of international trade theories, where it is seen as the opposite of free trade.
The correct answer is based on the definition of autarky, which implies a complete absence of international trade.
• Option A, free trade, is incorrect because it involves the unrestricted exchange of goods and services between countries, which is the opposite of autarky.
• Option C, restricted trade, is also incorrect because while it does involve some limitations on trade, it still allows for some level of international exchange, whereas autarky involves no trade at all.
About This Chapter: International Trade
Paper
Paper 4: Business Economics
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.
View Official ICAI SyllabusExam 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.
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