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Chapters
2: National Income
3: Theories of Employment and Income
4: Consumption and Investment Functions
5: Monetary Economics
6: Banking
▶ 7: International Economics
8: International Economic Organisations
9: Fiscal Economics
10: Environmental Economics
11: Economics of Development and Planning
12: Introduction to Statistical Methods and Econometrics
![Samacheer Kalvi solutions for Economics [English] Class 12 TN Board chapter 7 - International Economics - Shaalaa.com](/images/economics-english-class-12-tn-board_6:5f2b1b2038084cf381bfa42c826a928c.jpg "Samacheer Kalvi solutions for Economics [English] Class 12 TN Board chapter 7 - International Economics")
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Solutions for Chapter 7: International Economics
Below listed, you can find solutions for Chapter 7 of Tamil Nadu Board of Secondary Education Samacheer Kalvi for Economics [English] Class 12 TN Board.
Samacheer Kalvi solutions for Economics [English] Class 12 TN Board 7 International Economics Model Questions [Pages 149 - 152]
Part A - Multiple Choice Questions
Trade between two countries is known as ______ trade.
External
Internal
Inter-regional
Home
Which of the following factors influence trade?
The stage of development of a product
The relative price of factors of productions.
Government
All of the above
International trade differs from domestic trade because of ______.
Trade restrictions
Immobility of factors
Different government policies
All the above
In general, a primary reason why nations conduct international trade is that ______.
Some nations prefer to produce one thing while others produce another
Resources are not equally distributed among all trading nations
Trade enhances opportunities to accumulate profits
Interest rates are not identical in all trading nations
Which of the following is a modern theory of international trade?
absolute cost
comparative cost
Factor endowment theory
none of these
Exchange rates are determined in ______.
money market
foreign exchange market
stock market
capital market
Exchange rate for currencies is determined by supply and demand under the system of the ______.
Fixed exchange rate
Flexible exchange rate
Constant
Government-regulated
Net export equals ______.
Export x Import
Export + Import
Export-Import
Exports of services only
Who among the following enunciated the concept of single factor terms of trade?
Jacob Viner
G.S.Donens
Taussig
J.S.Mill
Terms of Trade of a country show ______.
Ratio of goods exported and imported
Ratio of import duties
The Ratio of prices of exports and imports
The ratio of prices of exports and imports
Favorable trade means the value of exports is ______ than that of imports.
More
Less
More or Less
Not more than
If there is an imbalance in the trade balance (more imports than exports), it can be reduced by ______.
decreasing customs duties
increasing export duties
stimulating exports
stimulating imports
BOP includes ______.
visible items only
invisible items only
both visible and invisible items
merchandise trade only
Components of a balance of payments of a country include ______.
Current account
Official account
Capital account
All of above
In the case of BOT,
Transactions of goods are recorded.
Transactions of both goods and services are recorded.
Both capital and financial accounts are included.
All of these
Tourism and travel are classified in which a balance of payments accounts?
merchandise trade account
services account
unilateral transfers account
capital account
Cyclical disequilibrium in BOP occurs because of ______.
Different paths of the business cycle.
The income elasticity of demand or price elasticity of demand is different.
long-run changes in an economy
Both (a) and (b).
Which of the following is not an example of foreign direct investment?
the construction of a new auto assembly plant overseas
the acquisition of an existing steel mill overseas
the purchase of bonds or stock issued by a textile company overseas
the creation of a wholly-owned business firm overseas
Foreign direct investments not permitted in India ______.
Banking
Automic energy
Pharmaceutical
Insurance
Benefits of FDI include, theoretically ______.
Boost in Economic Growth
Increase in the import and export of goods and services
Increased employment and skill levels
All of these
Part B - Answer the following questions. Each question carries 2 marks
What is International Economics?
Define international trade.
State any two merits of trade.
What is the main difference between Adam Smith and Ricardo with regard to the emergence of foreign trade?
Define terms of Trade.
What do you mean by the balance of payments?
What is meant by Exchange Rate?
Part C - Answer the following questions. Each question carries 3 marks.
Describe the subject matter of International Economics.
Compare the Classical Theory of international trade with the Modern Theory of International trade.
Explain the Net Barter Terms of Trade and Gross Barter Terms of Trade.
Distinguish between Balance of Trade and Balance of Payments.
What are import quotas?
Write a brief note on the flexible exchange rate.
State the objectives of Foreign Direct Investment.
Part D - Answer the following questions. Each question carries 5 marks.
Discuss the differences between Internal Trade and International Trade.
Explain briefly the Comparative Cost Theory.
Discuss the Modern Theory of International Trade.
Explain the types of Terms of Trade given by Viner.
Bring out the components of balance of payments account.
Discuss the various types of disequilibrium in the balance of payments.
How the Rate of Exchange is determined? Illustrate.
Explain the relationship between Foreign Direct Investment and economic development.
Solutions for 7: International Economics
Samacheer Kalvi solutions for Economics [English] Class 12 TN Board chapter 7 - International Economics
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Concepts covered in Economics [English] Class 12 TN Board chapter 7 International Economics are Gains from International Trade, Terms of Trade, Balance of Trade Vs Balance of Payments, Exchange Rate, Foreign Direct Investment (FDI) and Trade, Introduction to International Economics, Meaning of International Economics, Subject Matter of International Economics, Meaning of Trade, Theories of International Trade.
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