Question

As the resources are space bound, no country can survive without international trade.

Export and import are the components of trade of a country. When the value of export

exceeds the value of imports, it is called a favorable balance of trade. On the contrary if

the value of import exceeds the value of exports, it termed as an unfavourable balance of

trade. India has trade relations with all the major trending blocks and all geographical

regions of the world.

A Which of the following best describes balance of trade?

(a) Sum of value of exports and imports.

(b) Difference of exports and imports.

(c) Sum of Total production in a country.

(d) Sum of total services in a country.

B. A country cannot survive or thrive without international trade because:

(a) Because each country has to pay a certain money to the World Trade Organisation.

(b) Because of inflation.

(c) Because international trade is a mandatory law in various constitutions.

(d) Because resources and technologies are distributed irregularly across the word and

one needs to import / export them to thrive.

C. When does a country have a neutral balance of trade?

(a) import > export (b) exports > imports

(c) exports = imports (d) it is always positive.

D. Which of the following is termed as favorable balance of trade.

(a) export > Import (b) export = import

(c) import > export (d) none of these.​

Answer 1

Answer:

A. Sum of value of exports and imports

B. Beacause of inflation

C. Exports= imports

D. import > export

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