The Core Books

Chapter 8: International Trade MCQs

Written by

Sri

in

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Class 12 • Geography

Chapter 8: International Trade

Source: NCERT Official Textbook

Chapter 8, “International Trade,” examines the exchange of goods and services across national boundaries. It traces the history of trade from the primitive barter system (exemplified by the Jon Beel Mela) and the use of commodity money to the establishment of long-distance routes like the Silk Route, the dark period of the slave trade, and post-Industrial Revolution patterns.

The chapter explains the basis for international trade, including differences in national resources (geology, minerals, climate), population factors (culture, size), stages of economic development, extent of foreign investment, and advancements in transport. It introduces key concepts like Balance of Trade (positive/negative), Trade Liberalisation/Free Trade, and the harmful practice of Dumping.

A significant portion is dedicated to global trade governance, detailing the evolution of GATT into the World Trade Organisation (WTO) and the rise of Regional Trade Blocs. It discusses both the benefits (specialization, higher production, better standards of living) and concerns (dependence, exploitation, environmental degradation) associated with international trade.

Finally, the chapter identifies Ports as the chief gateways of trade, classifying them based on cargo handled (Industrial, Commercial, Comprehensive), location (Inland, Out ports), and specialised functions (e.g., Oil Ports).

Topics Covered:

Section A: Descriptive Questions

  1. Define international trade. Why do countries need to trade? (Pg. 1) Page 70
  2. What was the Silk Route? Name two items traded on it. (Pg. 2) Page 71
  3. What is the principle of comparative advantage in international trade? (Pg. 3) Page 72
  4. Explain how geological structure and climate form the basis of international trade. (Pg. 3) Page 72
  5. Differentiate between bilateral trade and multi-lateral trade. (Pg. 4) Page 73
  6. What are the main functions of the World Trade Organisation (WTO)? (Pg. 5) Page 74
  7. Why have Regional Trade Blocs developed? (Pg. 5) Page 74
  8. How is the importance of a port judged? (Pg. 6) Page 75
  9. Classify ports on the basis of their specialised functions and give one example. (Pg. 6) Page 75
  10. (Exercise) Why is it detrimental for a nation to have a negative balance of payments? (Pg. 7) Page 76
  11. (Exercise) What benefits do nations get by forming trading blocs? (Pg. 7) Page 76

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Section B1: Objective MCQs

Page 70

What was the initial form of trade in primitive societies? (Pg. 1)

A) Money systemB) Credit systemC) Barter systemD) Digital system
View Answer
Correct Answer: C
Reference: NCERT Page 70
Page 71

Which trade, involving the forced transport of African natives to the Americas, emerged during European colonialism? (Pg. 2)

A) Spice TradeB) Silk TradeC) Slave TradeD) Tea Trade
View Answer
Correct Answer: C
Reference: NCERT Page 71
Page 72

Which of these is NOT a basis of international trade? (Pg. 3)

A) Difference in national resourcesB) Stage of economic developmentC) Extent of foreign investmentD) Identical climate in all countries
View Answer
Correct Answer: D
Reference: NCERT Page 72
Page 72

How does foreign investment boost trade in developing countries? (Pg. 3)

A) By reducing their populationB) By providing capital for developmentC) By changing their climateD) By imposing trade barriers
View Answer
Correct Answer: B
Reference: NCERT Page 72
Page 73

What is the act of opening up economies by reducing trade barriers called? (Pg. 4)

A) ProtectionismB) DumpingC) Trade LiberalisationD) Sanctions
View Answer
Correct Answer: C
Reference: NCERT Page 73
Page 74

What was GATT transformed into in 1995? (Pg. 5)

A) UNCTADB) World BankC) World Trade Organisation (WTO)D) International Monetary Fund
View Answer
Correct Answer: C
Reference: NCERT Page 74
Page 74

What is a potential future concern regarding different Regional Trade Blocs? (Pg. 5)

A) Increased cooperationB) Free trade between blocs may become difficultC) Elimination of all tariffsD) Uniform global currency
View Answer
Correct Answer: B
Reference: NCERT Page 74
Page 75

Which type of port specialises in handling bulk cargo like grain, ore, and oil? (Pg. 6)

A) Commercial PortB) Naval PortC) Industrial PortD) Comprehensive Port
View Answer
Correct Answer: C
Reference: NCERT Page 75
Page 76

(Exercise) Most of the world’s great ports are classified as: (Pg. 7)

A) Naval PortsB) Oil PortsC) Comprehensive PortsD) Industrial Ports
View Answer
Correct Answer: C
Reference: NCERT Page 76
Page 76

(Exercise) Which continent has the maximum flow of global trade? (Pg. 7)

A) AsiaB) North AmericaC) EuropeD) Africa
View Answer
Correct Answer: C
Reference: NCERT Page 76

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Section B2: Factual One-Liners

The Latin word ‘Salarium’, meaning payment by salt, is the origin of the modern word ______. (Pg. 2) Page 71

Reveal Answer
salary (Page 71)

After the Industrial Revolution, industrialised nations imported primary products as ______ materials. (Pg. 2) Page 71

Reveal Answer
raw (Page 71)

The ______ of a population determines the demand for better quality imported products. (Pg. 3) Page 72

Reveal Answer
standard of living (Page 72)

If the value of a country’s imports exceeds its exports, it has a ______ balance of trade. (Pg. 4) Page 73

Reveal Answer
negative / unfavourable (Page 73)

The practice of selling a commodity in two countries at differing prices unrelated to costs is called ______. (Pg. 4) Page 73

Reveal Answer
dumping (Page 73)

The headquarters of the World Trade Organisation is located in ______, Switzerland. (Pg. 5) Page 74

Reveal Answer
Geneva (Page 74)

The chief gateways of international trade are ______ and ports. (Pg. 6) Page 75

Reveal Answer
harbours (Page 75)

Ports like Manchester and Kolkata, located away from the coast but linked by rivers/canals, are called ______ ports. (Pg. 6) Page 75

Reveal Answer
Inland (Page 75)

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