India’s Foreign Trade MCQ — Class 12

Test your understanding of India’s Foreign Trade with 20 free questions across Easy and Moderate. Hard and Extreme require Premium. Choose a level in the interactive quiz to answer questions and review explanations.

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Key concepts to revise

Foreign trade

Foreign trade: exchange of goods and services between residents of different countries through exports and imports

Colonial trade legacy

Colonial trade legacy: at independence India inherited a pattern dominated by primary exports and dependence on imported manufactured or capital goods

Inward-looking trade strategy

Inward-looking trade strategy: a development approach that protects domestic production and reduces reliance on imports

Import substitution

Import substitution: replacing imported goods with domestically produced alternatives

Tariff protection

Tariff protection: use of taxes on imports to raise their domestic price and protect home producers

Import quota

Import quota: a quantitative limit on the amount of a good that may be imported

Infant-industry argument

Infant-industry argument: temporary protection can give new domestic industries time to develop scale, skills and competitiveness

Composition of trade

Composition of trade: the commodity pattern of a country’s exports and imports

Direction of trade

Direction of trade: the country-wise distribution of exports and imports across trading partners

Trade-strategy limitation

Trade-strategy limitation: excessive protection can weaken competition and efficiency if domestic producers remain insulated too long

Try these sample MCQs

1. Which concept best matches this situation? India exports a service and imports machinery.

  1. Colonial trade legacy
  2. Foreign trade
  3. Import substitution
  4. Infant-industry argument
Check answer and explanation

Foreign trade. Foreign trade: exchange of goods and services between residents of different countries through exports and imports

2. Which concept best matches this situation? Raw materials were exported while many finished products were imported.

  1. Inward-looking trade strategy
  2. Tariff protection
  3. Colonial trade legacy
  4. Composition of trade
Check answer and explanation

Colonial trade legacy. Colonial trade legacy: at independence India inherited a pattern dominated by primary exports and dependence on imported manufactured or capital goods

3. Which concept best matches this situation? Domestic industries are sheltered while capacity is built at home.

  1. Import substitution
  2. Import quota
  3. Direction of trade
  4. Inward-looking trade strategy
Check answer and explanation

Inward-looking trade strategy. Inward-looking trade strategy: a development approach that protects domestic production and reduces reliance on imports

After the quiz

Write down the concepts you missed. Explain each one in your own words, give an example, and attempt the level again without notes. A high score on a short quiz does not replace revision of the whole chapter.

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