L-21 INTERNATIONAL TRADE
A. One Word or One
Line Questions
Q. 1. What do
you mean by international trade?
Ans. Buying and selling of goods between two or more
nations is called international trade.
Q. 2. What are
the other names of international trade?
Ans. (i) Foreign Trade
(ii)
External Trade.
Q. 3. Name types
of International Trade.
Ans. (i) Export Trade,
(ii) Import
Trade,
(iii)
Enterpot trade.
Q. 4. What does
Enterpot Trade mean?
Ans. Enterpot trade means purchasing or importing the
goods into one country for the purpose of exporting them to some other
countries.
Q. 5. What is
Export Trade?
Ans. The selling of goods to the traders of other
countries is known as export trade.
Q. 6. What is
Import Trade?
Ans. Buying the goods from the traders of the other
countries is known as Import Trade.
Q. 7. When a
trader of Ludhiana sells goods to the trader of USA, which type of trade is it?
Ans. Export Trade.
Q. 8. When a
trader of India buys the goods from the trader of Japan, which type of trade is it?
Ans. Import Trade.
Q. 9. What is
sent to importer alongwith shipment advice?
Ans. A non-negotiable copy of bill of lading and
master document copy.
Q. 10. Name
types of Bill of Lading.
Ans. Clean Bill of Lading, Foul Bill of lading,
Thorough Bill of Lading.
Q. 11. Who
issued certificate of Inspection?
Ans. It is issued by the Export Inspection Council of
India (EIC) to ensure that proper quality of goods are exported.
Q. 12. What do
you mean by Red Book?
Ans. The Import Trade Control Policy Book is called
Red Book. It contains the import policy declared by the Indian government.
Q. 13. Define
Indent.
Ans. It is just a form of order which is sent to the
exporter for goods to be imported.
Q. 14. When did
World Trade Organisation come into existence?
Ans. World Trade Organisation came into existence on
January 01, 1995.
Q. 15. State
any one primary objective of World Trade Organisation.
Ans. WTO has the primary objective of promoting free
trade in both, goods and services all over the world.
Q. 16. Write
down one main function of World Trade Organisation.
Ans. Main function of WTO is to administer various
agreements made under the aegis of WTO.
Q. 17. Write
down one benefit of World Trade Organisation.
Ans. WTO has played a vital role in the settlement of
many trade disputes among member nations.
B. Fill in the
blanks
1. ......... is an essential document of foreign
trade.
2. The cost of transportation is high in ......... as
compare to Home Trade.
3. There are ......... restrictions in home trade.
(more, no)
4. Before exporting the goods, it is compulsory for An
exporter to get.........
5. ......... is the second step of export procedure.
6. Airway Bill is a ......... bill issued by the
airline for carriage of goods.
7. ......... is last step of export procedure.
8. ......... will depute an inspector for the purpose
of inspecting the goods.
Ans.
1. Foreign Bill, 2. Foreign Trade, 3. no., 4. code number from RBI, 5. Importer
Exporter Code Number, 6. Non-transferable, 7. Presentation of documents to
bank, 8. Inspecting Agency
C. True or False
1. Regional Licensing Authority will issue
Importer-Exporter code number to the exporter.
2. Export invoice is a basic document in export
transaction which contains information about the description of goods, value of
goods etc.
3. A bill of exchange is non-negotiable instrument.
4. PAN is permanent acceptance number.
5. Drawer is maker of the bill to whom payment is due.
6. To import the goods into India, the importer has to
obtain a valid license under the Imports and Export Act, 1947.
7. The goods covered by Open General License cannot be
imported by obtaining a general permission only.
8. Indent house act as a middleman between importers
and exporters.
Ans.
1. True, 2. True, 3. False, 4. False, 5. True, 6. True, 7. False, 8. True
D. MCQ
1. At time of
foreign trade, a large number of documents are required to prepare by
(a) Exporter
(b) Importer
(c) Both a and b
(d) None of the above
2. Which
document starts with the words "Shipped in good order and condition".
(a) Thorough Bill of Lading
(b) Clean Bill of Lading
(c) Foul Bill of Lading
(d) None of the above
3. Which
document is used when a general ship carries many consignments as a common carrier.
(a) Cart Ticket
(b) Mate's Receipt
(c) Shipping Bill
(d) Bill of Lading
4. Number of
parties to a bill of exchange
(a) Two
(b) Four
(c) Three
(d) None of the above
5. D/A stands
for
(a) Document Against Payment
(b) Document Against Acceptance
(c) Document Against Airway Bill
(d) Both b and c
6. Which of the
following documents are used in import trade?
(a) Quota Certificate
(b) Bill of Sight
(c) Letter of Credit
(d) All of these
7. Which of the
following document specify the quantity and value of good which the importer can import?
(a) Letter of Credit
(b) Dock Challan
(c) Advice Note
(d) Quota Certificate
8. Which method
an importer can adopt for payment of price?
(a) Letter of Credit
(b) Bill of Exchange
(c) Payment to the exporter's agent
(d) All of the above
9. Import trade
is carried on under the control of
(a) Importer
(b) Exporter
(c) Both (a) and (b)
(d) Government
Ans. 1. (c), 2. (b), 3. (d),
4. (c), 5. (b), 6. (d), 7. (d), 8. (d), 9. (d)
