What do you mean by international trade? International trade is the means of exchange of goods and services between the people of two or more countries.
What is meant by balance of trade? The balance of trade is the total volume of exports and imports of physical goods of a country with the rest of the world.
What is balance of payment? Balance of payment is the receipt and payment of a country with the rest of the world.
What is free trade? Free trade is defined as the trade policy in which government does not impose any kind of restriction on export and import of goods and services.
Write any four advantages or arguments in favour of free trade. The four arguments in favour of free trade are as follows:
Benefit of specialization
Benefits to international consumers
Promotes healthy competition
Expansion of market
Write any four disadvantages or arguments against free trade. The four arguments against free trade are as follows:
Exhaustion of natural resources
Adverse effect on domestic industries
Import of harmful goods
What is meant by protectionism? Protectionism is the trade policy which encourages the national industries by imposing restrictions on the import of foreign goods or by providing facilities to domestic products.
Write any four advantages of protectionism: The four advantages of protectionism are as follows:
Protection of infant industries
Diversification of industries
Promotion of employment
Development of key industries
Mention the names of major commodities exported by Nepal: The major commodities exported by Nepal are jute, pulse, oil seeds, ginger, live animals, carpet, readymade garments, handicrafts, herbs, etc.
Mention the names of major commodities imported by Nepal: The major commodities imported by Nepal are finished goods, raw materials of industry, machinery, equipment, chemical fertilizers, petroleum products, etc.
What are the objectives of World Trade Organization (WTO)? The objectives of WTO are as follows:
Raising the standard of living and income
Promoting full employment
Expanding production and trade
Optimum utilization of world’s resources
Introducing sustainable development
What are the objectives of SAFTA? The objectives of SAFTA are as follows: