Q. All are advantages of foreign trade EXCEPT:
✅ Correct Answer: (A)
People get foreign exchange
International Economics MCQs and Notes
Q. According to Hecksher and Ohlin basic cause of international trade is:
✅ Correct Answer: (A)
Difference in factor endowments
Q. If Japan and Pakistan start free trade, difference in wages in two countries will:
✅ Correct Answer: (B)
Decrease
Q. Foreign trade creates among countries:
✅ Correct Answer: (B)
Cooperation
Q. Modern theory of international trade is based n the views of:
✅ Correct Answer: (C)
Heckcsher and Ohlin
Q. Trade between two countries can be useful if cost ratios of goods are:
✅ Correct Answer: (B)
Different
Q. Which is NOT an advantage of international trade:
✅ Correct Answer: (C)
Dependence on foreign countries
Q. Which of the following is international trade:
✅ Correct Answer: (C)
Trade between countries
Q. Theory of comparative advantage was presented by:
✅ Correct Answer: (B)
Ricardo