Advertisements
Advertisements
Question
Explain briefly the different types of Foreign trade?
Solution
A. Import Trade:
Import trade means buying goods from a foreign country for domestic use. Example. India imports petroleum products from Gulf Countries. India imports machinery, equipment, materials, etc. It is necessary to speed up industrialization, meet consumer demands, and improve the standard of living.
B. Export Trade:
Export trade means the sale of domestic goods to foreign countries.
Examples:
- Export of Iron ore from India to Japan
- Selling of Tea from India to England.
- Export of jasmine flowers from Madurai to Singapore
Export trade is necessary to sell domestic surplus goods, to make better utilization of resources, to earn foreign exchange, to increase national income, to generate employment, and to increase Government revenue
C. Entrepot Trade:
Entrepot trade means importing goods from one country and exporting the same to foreign countries. lt is also known as “Re-export trade’.
Example Indian diamond merchants in Surat import uncut raw diamonds from South Africa. They cut and polish the diamonds in their units in India and re-export them to the International Diamond Market in Amsterdam.
APPEARS IN
RELATED QUESTIONS
Choose the Correct Answer.
When goods are imported for the purpose of export it is called as ______
What is the tax or duty on imports called?
The opening of Suez Canal served as a direct route for ships operating between ______.
Identify the correct statement from the following:
Match the following:
| 1 | The sale of 51 % or more stake of a PSU to the private sector who bids the highest. | A | Minority Sale |
| 2 | Sale refers to the sale of less than 49% stake of a the PSU to private sector. | B | Strategic Sale |
| 3 | It is a trade agreement between two countries | C | Devaluation of Rupee |
| 4 | It refers to the fall in the value of rupee in terms of foreign currency | D | Bilateral Trade |
______ is the difference between the values of exports and imports of goods of a country.
The term "balance of trade" denotes the difference between the exports and imports of ______ in a country.
Identify the correctly matched pair of Column A to that of Column B:
| Column A | Column B | ||
| 1 | Items of imports and exports | (a) | Import substitution |
| 2 | Outward oriented policy | (b) | Composition of foreign trade |
| 3 | Inward oriented policy | (c) | Export promotion |
| 4 | Imports exceed exports | (d) | Unfavourable Balance of trade |
Which of the following statements is true?
Identify the correct sequence of alternatives given in Column B by matching them with respective Column A:
| Column A | Column B | ||
| (1) | Borrowings from IMF | (a) | Current Account |
| (2) | Import of shipping services | (b) | Invisible items |
| (3) | Export of machinery | (c) | Accommodating items |
| (4) | Foreign aid | (d) | Visible items |
