40+ Introduction to International Trade MCQ | (Free Resource) Business Economics

11. Hecksher Ohlin theory cannot be applied to more than _________ .
a) several commodities and several countries
b) two commodities
c) two countries
d) few countries

12. According to Hecksher Ohlin theory, product price depends on _________ .
a) all of the given below
b) only factor intensity
c) only factor abundance
d) factor cost

13. According to Hecksher Ohlin theory, the international trade takes place due to difference in ______ .
a) product price
b) labour efficiency
c) advanced technology
d) all of the above

14. In international trade ______ move between nations.
a) commodities and not factors
b) factors of production
c) factors and commodities
d) none of the above

15. Terms of trade are expressed as a ratio of ________ .
a) price index of exports and imports
b) foreign exchange receipts and payments
c) FDI and portfolio investments
d) none of the above

16. Terms of trade are favourable if the current index in comparison to the base year index is ________ .
a) more
b) less
c) equal
d) none of the above|

17. Gross barter terms of trade takes into account _________ .
a) trade items and unilateral payments
b) only trade items
c) only services
d) none of the above

18. Income terms of trade indicate increased capacity to __________ .
a) import
b) export
c) investment
d) none of the above

19. Single factoral terms of trade takes into account changes in __________ .
a) efficiency of factors of production of export goods
b) export prices,
c) import prices
d) demand for imports

20. Generally, the developing countries ________ terms of trade.
a) suffer from adverse
b) enjoy favourable
c) ignore
d) none of the above)

Answers: 11)several commodities and several countries 12)all of the given below 13)product price 14)commodities and not factors 15)price index of exports and imports 16)more 17)trade items and unilateral payments 18)import 19)efficiency of factors of production of export goods 20)suffer from adverse