NCERT Class 12 Geography Chapter 8 International Trade Important Questions

Multiple Choice Questions (MCQs)

1. International trade refers to:

2. The earliest form of trade was:

3. Jon Beel Mela is famous for:

4. Which of the following was used as money in ancient times?

5. The word “salary” originates from:

6. The Silk Route connected:

7. The Silk Route was approximately:

8. Which trade emerged during European colonialism?

9. Slave trade was abolished in Great Britain in:

10. Slave trade was abolished in the United States in:

11. After the Industrial Revolution, industrialised nations mainly imported:

12. International trade is based on:

13. Which principle forms the basis of international trade?

14. Uneven distribution of resources is mainly due to:

15. Which factor determines mineral resource availability?

16. Bananas, rubber and cocoa grow mainly in:

17. Iran is famous for:

18. China is famous for:

19. Densely populated countries generally have:

20. Industrialised countries generally export:

21. Foreign investment helps developing countries by:

22. Which factor greatly expanded international trade?

23. When imports exceed exports, it is called:

24. When exports exceed imports, it is called:

25. Bilateral trade occurs between:

26. MFN stands for:

27. Trade liberalisation means:

28. Dumping refers to:

29. GATT was formed in:

30. WTO came into existence on:

31. WTO headquarters is located in:

32. WTO deals with:

33. India is:

34. WTO members as of December 2024 were:

35. Regional trade blocs encourage:

36. Regional trade blocs generate approximately:

37. Ports are known as:

38. Industrial ports mainly handle:

39. Commercial ports handle:

40. Most of the world’s great ports are:

41. Which is an inland port?

42. Athens is associated with which out port?

43. Which is an example of a refinery port?

44. Which port developed as a refuelling and watering station?

45. Singapore is an example of:

46. Dover and Calais are examples of:

47. Which are examples of naval ports in India?

One-Word / Very Short Answer Questions

Assertion and Reason Questions

Question 1

Assertion (A): International trade is based on comparative advantage.

Reason (R): Countries specialise in producing goods efficiently.

Question 2

Assertion (A): International trade benefits participating nations.

Reason (R): It encourages specialisation and division of labour.

Question 3

Assertion (A): Geological structure affects trade.

Reason (R): It determines mineral resource availability.

Question 4

Assertion (A): Climate influences international trade.

Reason (R): Different climates support different products.

Question 5

Assertion (A): Densely populated countries generally have large internal trade.

Reason (R): Most production is consumed domestically.

Question 6

Assertion (A): Efficient transport promotes international trade.

Reason (R): It reduces spatial barriers.

Question 7

Assertion (A): Negative balance of trade is beneficial for an economy.

Reason (R): It means imports exceed exports.

Question 8

Assertion (A): Bilateral trade occurs between two countries.

Reason (R): Countries enter agreements for specified commodities.

Question 9

Assertion (A): Trade liberalisation reduces trade barriers.

Reason (R): It allows foreign goods to compete in domestic markets.

Question 10

Assertion (A): Dumping can harm domestic producers.

Reason (R): Dumped goods are often sold at cheaper prices.

Question 11

Assertion (A): WTO promotes free and fair trade.

Reason (R): It formulates global trade rules and settles disputes.

Question 12

Assertion (A): WTO is free from criticism.

Reason (R): Many people believe it favours developed nations.

Question 13

Assertion (A): Regional trade blocs encourage trade among nearby countries.

Reason (R): Geographic proximity supports trade cooperation.

Question 14

Assertion (A): International trade can negatively impact the environment.

Reason (R): Increased production accelerates resource exploitation.

Question 15

Assertion (A): Ports are gateways of international trade.

Reason (R): Cargo and passengers move internationally through them.

Important Exam-Based Concept Questions

Facts, Years and Exam Data

• Silk Route connection: Connected Rome and China. (Page 71)
• Length of Silk Route: Approximately 6,000 km. (Page 71)
• Slave trade abolition (Denmark): Abolished slave trade in 1792. (Page 71)
• Slave trade abolition (Great Britain): Abolished slave trade in 1807. (Page 71)
• Slave trade abolition (United States): Abolished slave trade in 1808. (Page 71)
• GATT Formation: Established in the year 1948. (Page 74)
• WTO Establishment: Came into existence on 1 January 1995. (Page 74)
• WTO Headquarters: Located in Geneva, Switzerland. (Page 74)
• WTO Membership Status (Dec 2024): Consisted of 166 members. (Page 74)
• India’s Status in WTO: India is one of the founding members. (Page 74)
• Regional Trade Blocs: Around 120 regional trade blocs exist globally. (Page 74)
• Trade volume generation: Regional trade blocs generate 52% of total world trade. (Page 74)

Direct NCERT Book-Back Questions

• What is the basic function of the World Trade Organisation? (Page 76)
• Why is it detrimental for a nation to have a negative balance of payments? (Page 76)
• What benefits do nations get by forming trading blocs? (Page 76)
• How are ports helpful for trade? Give a classification of ports on the basis of their location. (Page 76)
• How do nations gain from international trade? (Page 76)

Very Important Revision Points

• International trade is the exchange of goods and services across national boundaries.
• Barter system was the earliest form of trade.
• Silk Route connected Rome and China over long distances.
• International trade is fundamentally based on comparative advantage, complementarity and transferability.
• Differences in resources, population, and development levels create diverse trade opportunities.
• Positive balance of trade occurs when exports exceed imports.
• Negative balance of trade occurs when imports exceed exports.
• Bilateral trade involves exactly two countries.
• Multilateral trade involves many countries simultaneously.
• Trade liberalisation reduces tariffs and non-tariff trade barriers.
• Dumping refers to selling products at prices completely unrelated to production costs.
• GATT was formed early on in 1948.
• WTO was subsequently established on 1 January 1995.
• The permanent WTO headquarters is located in Geneva.
• India is a proud founding member of the WTO framework.
• Regional trade blocs proactively encourage trade cooperation among proximity nations.
• Ports are strategically classified as the primary gateways of international trade.
• Industrial ports specialize heavily to handle bulk cargo.
• Commercial ports handle standard general cargo and passenger traffic.
• Comprehensive ports effortlessly handle both bulk and general cargo loads.
• Inland ports are intentionally located completely away from the sea coast.
• Entrepot ports function smoothly as specialized collection centres for exports.
• Naval ports serve critical strategic and national defence purposes.