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?
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
Consider the following statements:
(1) Hike in global oil prices can widen the Current Account Deficit (CAD) of India.
(2) Higher CAD can lead to depreciation of the currency.
Which among the above statements is/are correct?
Which of the following affect the pricing of a currency option?
(A) Spot exchange rate
(B) Exercise rate
(C) Foreign risk-free rate of return
(D) Domestic risk-adjusted rate
(E) Time to expiration
Choose the correct answer from the options given below:
