Fundamentals of Human Geography

NCERT Class 12 Geography Chapter 8 International Trade Important Questions

Comprehensive question bank strictly based on NCERT textbook chapters for CBSE Board Exams, CUET, UPSC, SSC, and state competitive exams.

International Trade is a crucial chapter in Human Geography that explains the exchange of goods and services across national boundaries and its role in global economic development. The chapter covers barter system, history of international trade, balance of trade, WTO, free trade, regional trade blocs and ports. This question bank includes MCQs, one-word questions, assertion and reason questions and descriptive questions for comprehensive NCERT revision.

These questions are highly useful for CBSE Board Exams, CUET, UPSC, SSC, PSC, Railways and other competitive examinations. Important concepts such as comparative advantage, trade liberalisation, dumping, WTO, balance of trade and international ports are frequently asked in exams. The questions below are strictly based on NCERT Class 12 Geography Chapter 8 – International Trade.

📌 Table of Contents



Multiple Choice Questions (MCQs)

These MCQs from International Trade are designed for objective revision and competitive exam preparation. They cover trade principles, WTO, trade blocs, free trade, balance of trade and major types of ports discussed in the NCERT chapter.

1. International trade refers to:

A. Exchange within a country
B. Exchange between villages
C. Exchange of goods and services across national boundaries
D. Exchange between states
Correct Answer: C | Page Reference: 70

2. The earliest form of trade was:

A. E-commerce
B. Currency trade
C. Banking
D. Barter system
Correct Answer: D | Page Reference: 70

3. Jon Beel Mela is famous for:

A. Silk production
B. Maritime trade
C. Barter system
D. Gold trade
Correct Answer: C | Page Reference: 70

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

A. Plastic cards
B. Cowrie shells
C. Currency notes
D. Digital tokens
Correct Answer: B | Page Reference: 71

5. The word “salary” originates from:

A. Silver
B. Gold
C. Salt
D. Spice
Correct Answer: C | Page Reference: 71

6. The Silk Route connected:

A. India and Africa
B. Rome and China
C. China and Australia
D. Persia and Europe only
Correct Answer: B | Page Reference: 71

7. The Silk Route was approximately:

A. 2,000 km
B. 4,000 km
C. 6,000 km
D. 8,000 km
Correct Answer: C | Page Reference: 71

8. Which trade emerged during European colonialism?

A. Digital trade
B. Service trade
C. Slave trade
D. Fair trade
Correct Answer: C | Page Reference: 71

9. Slave trade was abolished in Great Britain in:

A. 1792
B. 1807
C. 1808
D. 1815
Correct Answer: B | Page Reference: 71

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

A. 1792
B. 1807
C. 1808
D. 1810
Correct Answer: C | Page Reference: 71

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

A. Finished goods
B. Luxury products
C. Raw materials
D. Services
Correct Answer: C | Page Reference: 71

12. International trade is based on:

A. Competition only
B. Comparative advantage
C. Political dominance
D. Currency control
Correct Answer: B | Page Reference: 72

13. Which principle forms the basis of international trade?

A. Comparative advantage
B. Complementarity
C. Transferability
D. All of these
Correct Answer: D | Page Reference: 72

14. Uneven distribution of resources is mainly due to:

A. Politics
B. Religion
C. Physical differences
D. Tourism
Correct Answer: C | Page Reference: 72

15. Which factor determines mineral resource availability?

A. Climate
B. Geological structure
C. Population
D. Technology
Correct Answer: B | Page Reference: 72

16. Bananas, rubber and cocoa grow mainly in:

A. Polar regions
B. Temperate regions
C. Tropical regions
D. Mountain regions
Correct Answer: C | Page Reference: 72

17. Iran is famous for:

A. Silk
B. Porcelain
C. Carpets
D. Leather goods
Correct Answer: C | Page Reference: 72

18. China is famous for:

A. Porcelain and brocades
B. Carpets
C. Leather goods
D. Batik cloth
Correct Answer: A | Page Reference: 72

19. Densely populated countries generally have:

A. Large internal trade
B. No internal trade
C. Only foreign trade
D. Only service trade
Correct Answer: A | Page Reference: 72

20. Industrialised countries generally export:

A. Raw materials
B. Machinery and finished products
C. Agricultural products only
D. Minerals only
Correct Answer: B | Page Reference: 72

21. Foreign investment helps developing countries by:

A. Reducing production
B. Providing capital
C. Increasing tariffs
D. Restricting trade
Correct Answer: B | Page Reference: 72

22. Which factor greatly expanded international trade?

A. Better transportation
B. Isolation
C. Closed economies
D. Trade restrictions
Correct Answer: A | Page Reference: 72

23. When imports exceed exports, it is called:

A. Positive balance
B. Favourable balance
C. Negative balance of trade
D. Free trade
Correct Answer: C | Page Reference: 73

24. When exports exceed imports, it is called:

A. Negative balance
B. Unfavourable balance
C. Positive balance
D. Dumping
Correct Answer: C | Page Reference: 73

25. Bilateral trade occurs between:

A. Many countries
B. Two countries
C. Trade blocs only
D. WTO members only
Correct Answer: B | Page Reference: 73

26. MFN stands for:

A. Most Favoured Nation
B. Major Foreign Nation
C. Multi-Foreign Network
D. Mutual Free Nation
Correct Answer: A | Page Reference: 73

27. Trade liberalisation means:

A. Increasing tariffs
B. Reducing trade barriers
C. Restricting imports
D. Banning exports
Correct Answer: B | Page Reference: 73

28. Dumping refers to:

A. Exporting goods freely
B. Selling commodities at different prices unrelated to costs
C. High taxation
D. Currency exchange
Correct Answer: B | Page Reference: 73

29. GATT was formed in:

A. 1945
B. 1948
C. 1955
D. 1960
Correct Answer: B | Page Reference: 74

30. WTO came into existence on:

A. 1 January 1990
B. 1 January 1995
C. 1 January 2000
D. 1 January 2005
Correct Answer: B | Page Reference: 74

31. WTO headquarters is located in:

A. Paris
B. Geneva
C. London
D. New York
Correct Answer: B | Page Reference: 74

32. WTO deals with:

A. Global trade rules
B. Military alliances
C. Climate treaties only
D. Tourism promotion
Correct Answer: A | Page Reference: 74

33. India is:

A. Not a WTO member
B. A founding member of WTO
C. Observer member
D. Temporary member
Correct Answer: B | Page Reference: 74

34. WTO members as of December 2024 were:

A. 150
B. 160
C. 166
D. 175
Correct Answer: C | Page Reference: 74

35. Regional trade blocs encourage:

A. Trade restrictions
B. Regional trade
C. War
D. Isolation
Correct Answer: B | Page Reference: 74

36. Regional trade blocs generate approximately:

A. 25% of world trade
B. 40% of world trade
C. 52% of world trade
D. 75% of world trade
Correct Answer: C | Page Reference: 74

37. Ports are known as:

A. Manufacturing centres
B. Gateways of international trade
C. Agricultural centres
D. Industrial regions
Correct Answer: B | Page Reference: 75

38. Industrial ports mainly handle:

A. Passengers
B. Bulk cargo
C. Mail only
D. Tourism
Correct Answer: B | Page Reference: 75

39. Commercial ports handle:

A. General cargo and passengers
B. Oil only
C. Naval traffic only
D. Agricultural products only
Correct Answer: A | Page Reference: 75

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

A. Naval ports
B. Industrial ports
C. Comprehensive ports
D. Oil ports
Correct Answer: C | Page Reference: 75-76

41. Which is an inland port?

A. Singapore
B. Kolkata
C. Aden
D. Piraeus
Correct Answer: B | Page Reference: 75

42. Athens is associated with which out port?

A. Singapore
B. Rotterdam
C. Piraeus
D. Dover
Correct Answer: C | Page Reference: 75

43. Which is an example of a refinery port?

A. Abadan
B. Singapore
C. Aden
D. Kochi
Correct Answer: A | Page Reference: 75

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

A. Naval Port
B. Port of Call
C. Packet Station
D. Inland Port
Correct Answer: B | Page Reference: 76

45. Singapore is an example of:

A. Naval Port
B. Packet Station
C. Entrepot Port
D. Inland Port
Correct Answer: C | Page Reference: 76

46. Dover and Calais are examples of:

A. Oil Ports
B. Naval Ports
C. Packet Stations
D. Commercial Ports
Correct Answer: C | Page Reference: 76

47. Which are examples of naval ports in India?

A. Mumbai and Chennai
B. Kochi and Karwar
C. Kolkata and Paradip
D. Kandla and Tuticorin
Correct Answer: B | Page Reference: 76

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One-Word / Very Short Answer Questions

  1. What is the earliest form of trade?
    Answer: Barter System (Page Reference: 70)
  2. Which fair in Assam still practices barter trade?
    Answer: Jon Beel Mela (Page Reference: 70)
  3. Which ancient trade route connected Rome and China?
    Answer: Silk Route (Page Reference: 71)
  4. What was the approximate length of the Silk Route?
    Answer: 6,000 km (Page Reference: 71)
  5. Which organisation succeeded GATT?
    Answer: WTO (Page Reference: 74)
  6. What does WTO stand for?
    Answer: World Trade Organisation (Page Reference: 74)
  7. Where is WTO headquarters located?
    Answer: Geneva (Page Reference: 74)
  8. What does MFN stand for?
    Answer: Most Favoured Nation (Page Reference: 73)
  9. What is a negative balance of trade?
    Answer: Imports exceed exports (Page Reference: 73)
  10. What is a positive balance of trade?
    Answer: Exports exceed imports (Page Reference: 73)
  11. Which country is famous for carpets?
    Answer: Iran (Page Reference: 72)
  12. Which country is famous for porcelain?
    Answer: China (Page Reference: 72)
  13. What is trade liberalisation also called?
    Answer: Free Trade (Page Reference: 73)
  14. What is selling goods at different prices called?
    Answer: Dumping (Page Reference: 73)
  15. How many WTO members were there in December 2024?
    Answer: 166 (Page Reference: 74)
  16. Which city is the headquarters of WTO?
    Answer: Geneva (Page Reference: 74)
  17. Which port type handles bulk cargo and general cargo?
    Answer: Comprehensive Port (Page Reference: 75)
  18. Which port type is located away from the sea coast?
    Answer: Inland Port (Page Reference: 75)
  19. Which port serves as a collection centre for exports?
    Answer: Entrepot Port (Page Reference: 76)
  20. Name two naval ports in India.
    Answer: Kochi and Karwar (Page Reference: 76)



Assertion and Reason Questions

Question 1

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

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

Correct Option: A | Page Reference: 72

Question 2

Assertion (A): International trade benefits participating nations.

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

Correct Option: A | Page Reference: 72

Question 3

Assertion (A): Geological structure affects trade.

Reason (R): It determines mineral resource availability.

Correct Option: A | Page Reference: 72

Question 4

Assertion (A): Climate influences international trade.

Reason (R): Different climates support different products.

Correct Option: A | Page Reference: 72

Question 5

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

Reason (R): Most production is consumed domestically.

Correct Option: A | Page Reference: 72

Question 6

Assertion (A): Efficient transport promotes international trade.

Reason (R): It reduces spatial barriers.

Correct Option: A | Page Reference: 72

Question 7

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

Reason (R): It means imports exceed exports.

Correct Option: C | Page Reference: 73

Question 8

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

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

Correct Option: A | Page Reference: 73

Question 9

Assertion (A): Trade liberalisation reduces trade barriers.

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

Correct Option: A | Page Reference: 73

Question 10

Assertion (A): Dumping can harm domestic producers.

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

Correct Option: A | Page Reference: 73

Question 11

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

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

Correct Option: A | Page Reference: 74

Question 12

Assertion (A): WTO is free from criticism.

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

Correct Option: D | Page Reference: 74

Question 13

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

Reason (R): Geographic proximity supports trade cooperation.

Correct Option: A | Page Reference: 74

Question 14

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

Reason (R): Increased production accelerates resource exploitation.

Correct Option: A | Page Reference: 74

Question 15

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

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

Correct Option: A | Page Reference: 75



Important Exam-Based Concept Questions

1. Define international trade and explain its significance.
NCERT Page Reference: 70
2. Explain the barter system and its limitations.
NCERT Page Reference: 70-71
3. Discuss the evolution of international trade.
NCERT Page Reference: 71
4. Explain the significance of the Silk Route.
NCERT Page Reference: 71
5. Discuss the impact of the Industrial Revolution on international trade.
NCERT Page Reference: 71
6. Why does international trade exist?
NCERT Page Reference: 71-72
7. Explain the principle of comparative advantage.
NCERT Page Reference: 72
8. Discuss the role of complementarity and transferability in trade.
NCERT Page Reference: 72
9. Explain how differences in national resources promote trade.
NCERT Page Reference: 72
10. Discuss the role of population factors in international trade.
NCERT Page Reference: 72
11. Explain the impact of economic development on trade patterns.
NCERT Page Reference: 72
12. How does foreign investment influence international trade?
NCERT Page Reference: 72
13. Explain the role of transport in international trade.
NCERT Page Reference: 72
14. Define balance of trade. Differentiate between favourable and unfavourable balance.
NCERT Page Reference: 73
15. Explain bilateral and multilateral trade.
NCERT Page Reference: 73
16. Discuss the case for free trade.
NCERT Page Reference: 73
17. What is dumping? Explain its implications.
NCERT Page Reference: 73
18. Explain the formation and functions of WTO.
NCERT Page Reference: 74
19. Discuss the criticisms of WTO.
NCERT Page Reference: 74
20. Explain the importance of regional trade blocs.
NCERT Page Reference: 74
21. Discuss the benefits of international trade.
NCERT Page Reference: 74
22. Explain the negative impacts of international trade.
NCERT Page Reference: 74
23. Why are ports called gateways of international trade?
NCERT Page Reference: 75
24. Classify ports according to cargo handled.
NCERT Page Reference: 75
25. Differentiate between inland ports and out ports.
NCERT Page Reference: 75
26. Explain specialised ports with examples.
NCERT Page Reference: 75-76
27. Describe entrepot ports and their importance.
NCERT Page Reference: 76
28. Explain the role of naval ports.
NCERT Page Reference: 76



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.
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