The process of reducing barriers to trade and increasing participation in the international economy through trade is called:
Trade integration
Trade integration is correct.
Trade integration is the process of lowering tariffs, quotas and other barriers so that a country's producers and consumers take a larger part in the world economy through exports and imports.
Trade creation and trade diversion describe effects of a customs union or free-trade area: creation is new trade with the cheaper partner, diversion is trade shifting from a cheaper outside supplier to a costlier member. Trade capacity is a country's ability to trade, not a process.
Similar Questions
- The reduction in the external value of the domestic currency is called:
In the Balance of Payments, an increase in foreign exchange reserves appears under which category?
The Foreign Exchange Management Act (FEMA) was enacted in 1999 to replace the earlier FERA law. In which year did FEMA officially come into force?
- The price of one currency in terms of another is known as:
- The money invested by foreign MNC's is known as:
Important Questions from External Sector and Currency Exchange rate
Consider the following :
1. Foreign currency convertible bonds
2. Foreign institutional investment with certain conditions
3. Global depository receipts
4. Non-resident external deposits
Which of the above can be included in Foreign Direct Investments?
Procedure for online trading involve(s) which of the following step(s)?
I. Make an application to open a Demat Account and Online Trading Account.
II. Allocate funds from the bank account to the trading account.
III. Once the order is confirmed, it is placed in the stock exchange through the online trading system.
What is the idea that a country should be self-sufficient and not participate in international trade called?
According to Harrod-Domar growth model for the full capacity use of capital and labour or for full employment it is necessary that
When the exchange rate changes from 1$ = Rs. 72 to 1$ = Rs. 68, then the:
A. Rupee has depreciated
B. Dollar has depreciated
C. Rupee has appreciated
D. Dollar has appreciated
Choose the correct answer from the options given below:
