Trade Barriers in International Trade Questions and Answers

Multiple Choice Questions and Answers  (MCQs) on Trade Barriers in International Trade For Civil Services

Question 1 : Ad valorem tax is based on:

a) Income

b) Real value of goods

c) Money value of goods

d) Volume of goods

Answer : c

Question 2 : Consider the following statements:

  1. Infant industry argument is advocated in support of protectionism in international trade.
  2. Infant industries require time to undergo the process of learning-by-doing to become competitive in the long run.

Which of the statements given above is/are correct ?

a) 1 only

b)  2 only

c) Both 1 and 2

d) Neither 1 nor 2

Answer : c

Question 3 : Which of the following is no an example of sanitary and phyto-sanitary barrier to trade?

a) Level of pesticide residue in agricultural produce

b) Possibility of imported food causing disease in local population

c) Addictive nature of a beverage

d) None of the above

Answer : d

Question 4 : Price discrimination may be possible when

  1. The nature of the commodity or service is such that there is no possibility of transference from one market to other.
  2. The markets are separated by large distance or traffic barriers.
  3. Several groups of buyers require the same service from clearly differentiated commodities.
  4. Buyers are well informed and rational

Which of the statements given above are correct ?

a)  1 and 2 only

b) 1,3, and 4

c) 2 and 3 only

d) 1, 2, and 3

Answer : d

Question 5 : With reference to import tariffs, consider the following statements:

  1. Domestic consumers benefit from the imposition of import tariffs.
  2. Imposition of tariffs on imported products increase the level of competition in the economy.

Which of the statements given above is/are correct ?

a) 1 only

b)  2 only

c) Both 1 and 2

d) Neither 1 nor 2

Answer : d