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Question

Export of manufactured goods ________ trade and commerce.

The correct answer is
expands

Impact of Exporting Manufactured Goods

Exporting manufactured goods involves selling products made domestically to buyers in other countries. This activity is a fundamental component of international trade.

When manufactured goods are exported, it directly increases the volume and value of goods crossing international borders. This leads to a greater exchange of goods and services globally.

Therefore, the export of manufactured goods serves to grow and enlarge the scope of overall trade and commerce.

Analysis of Options

The question asks how the export of manufactured goods affects trade and commerce. Let's look at the options:

  • reduces: Incorrect. Exports increase activity, not decrease it.
  • expands: Correct. Exports add volume to international trade.
  • contracts: Incorrect. This is the opposite of expansion.
  • weakens: Incorrect. While competition can be a factor, the primary effect of exports is growth.

The correct choice is that export of manufactured goodsexpands trade and commerce.

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Important Questions from External Sector

  1. Which function is used to calculate the maximum value in a selected column in MS Excel?

  2. In relation to the balance of payments, a __________ deals with foreign exchange reserves, investments, loans, and borrowings.

  3. Which one of the following is an element of capital account in the Balance of Payments?

  4. The ____ Oversees the Foreign Exchange Management Act, 1999.

  5. In 1991, under the external sector reforms, Indian rupee ______.

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