Case for Free Trade
The act of opening up economies for trading is known as free trade or trade liberalisation. This is done by bringing down trade barriers like tariffs. Trade liberalisation allows goods and services from everywhere to compete with domestic products and services.
Globalisation along with free trade can adversely affect the economies of developing countries by not giving equal playing field by imposing conditions which are unfavourable. With the development of transport and communication systems, goods and services can travel faster and farther than ever before. But free trade should not only let rich countries enter the markets, but allow the developed countries to keep their own markets protected from foreign products.
Countries also need to be cautious about dumped goods; as along with free trade dumped goods of cheaper prices can harm the domestic producers.
Which one of the following is called 'free trade'?
Show Hint
- Trade liberalisation
- Trade restriction
- Trade value
- Trade quantity
The Correct Option is A
Solution and Explanation
The most adverse effect of 'free trade' is observed with which one of the following?
Show Hint
- Developed countries
- Developing countries
- Both under-developed and developed countries
- Both developed and developing countries
The Correct Option is B
Solution and Explanation
Which one of the following is the impact of the development of transport and communication on trade?
Show Hint
- Goods and services travel faster
- Goods and services move farther
- Goods and services travel faster and move farther
- Better connectivity only in a region concerned
The Correct Option is C
Solution and Explanation
Top Questions on International Trade
- Explain the changing pattern of the composition of India’s exports.
- CBSE CLASS XII - 2025
- Geography
- International Trade
- Explain the changing patterns of the composition of India's import.
- CBSE CLASS XII - 2025
- Geography
- International Trade
- Automatic vending machines and the internet are examples of which of the following types of trade?
- CBSE CLASS XII - 2025
- Geography
- International Trade
- Which one of the following is the disadvantage of free trade for developing countries?
- CBSE CLASS XII - 2025
- Geography
- International Trade
- Match Column-I with Column-II and choose the correct option.
Column-I (Basis of International Trade) Column-II (Feature) a. Geological structure ii. It determines the mineral resource base. b. Mineral resources iii. It provides the base for industrial development. c. Climate i. It determines the biotic life. d. Cultural factors iv. The development of crafts and skills is determined by it. - CBSE CLASS XII - 2025
- Geography
- International Trade
Questions Asked in CBSE CLASS XII exam
- The monetary policy is formulated by the ____ in the Indian economy.
- CBSE CLASS XII - 2025
- Money and Banking
- "The government generally levies higher Goods and Services Tax (GST) on socially undesirable products like cigarettes, tobacco, liquor etc." Identify and explain the indicated government budget objective in the above statement.
- CBSE CLASS XII - 2025
- Government Budgeting
- Find the values of \( a \) for which \( f(x) = \sin x - ax + b \) is increasing on \( \mathbb{R} \).
Two batteries of emf's \(3V \& 6V\) and internal resistances 0.2 Ω \(\&\) 0.4 Ω are connected in parallel. This combination is connected to a 4 Ω resistor. Find:
(i) the equivalent emf of the combination
(ii) the equivalent internal resistance of the combination
(iii) the current drawn from the combination- CBSE CLASS XII - 2025
- Electrical Circuits
Four students of class XII are given a problem to solve independently. Their respective chances of solving the problem are: \[ \frac{1}{2},\quad \frac{1}{3},\quad \frac{2}{3},\quad \frac{1}{5} \] Find the probability that at most one of them will solve the problem.