LitGrades
Explore
Subjects
Math
Science
English
Technology
Social Studies
History
General Knowledge
Language
For Teachers
Register
Login
Create New Folder
Flashcards on Indian Economy: Foreign Trade and Balance of Payments
Click on the flashcard to see the answer
What is foreign trade?
Foreign trade refers to the exchange of goods and services between countries.
What are the two types of foreign trade?
The two types of foreign trade are import trade and export trade.
What is the balance of payments?
The balance of payments is a record of all economic transactions between the residents of a country and the rest of the world.
What are the three components of the balance of payments?
The three components of the balance of payments are current account, capital account, and financial account.
What is the current account?
The current account records the transactions of goods, services, and unilateral transfers.
What is the capital account?
The capital account records the transactions of capital assets like buildings, land, and machinery.
What is the financial account?
The financial account records the transactions in financial assets like stocks, bonds, and loans.
What is a trade deficit?
A trade deficit occurs when a country imports more goods and services than it exports.
What is a trade surplus?
A trade surplus occurs when a country exports more goods and services than it imports.
What are the benefits of foreign trade for a country?
Foreign trade can lead to economic growth, increased competition, and access to new markets and resources.
What is the relationship between foreign trade and balance of payments?
Foreign trade affects the balance of payments by influencing the current account and capital account balances.
What factors can affect the balance of payments?
Factors like exchange rates, trade policies, and economic conditions can affect the balance of payments.
How does a country improve its balance of payments?
A country can improve its balance of payments by promoting exports, reducing imports, and attracting foreign investment.
What is the role of government in foreign trade and balance of payments?
The government plays a crucial role in formulating trade policies, regulating imports and exports, and managing the balance of payments.
What are some challenges faced by the Indian economy in foreign trade and balance of payments?
Challenges include maintaining a favorable balance of trade, managing currency fluctuations, and competing in the global market.
Share
Copy Link
Copy Embed
Login to Save
arrow_back
arrow_forward
Share
Copy Link
Copy Embed
Login to Save
Test Your Knowledge
What is the balance of payments?
The record of financial transactions within a country.
A record of all economic transactions between a country and the rest of the world.
The difference between a country's exports and imports.
The value of a country's currency in relation to other currencies.
Check Answers
What are the two types of foreign trade?
Import trade and export trade.
Domestic trade and international trade.
Barter trade and monetary trade.
Wholesale trade and retail trade.
Check Answers
What is the current account?
The account that records transactions of goods, services, and unilateral transfers.
The account that records transactions of capital assets like buildings and machinery.
The account that records transactions in financial assets like stocks and loans.
The account that records all economic transactions within a country.
Check Answers
What is a trade deficit?
When a country exports more goods and services than it imports.
When a country imports more goods and services than it exports.
When a country's imports and exports are balanced.
When a country does not engage in foreign trade.
Check Answers
What are the benefits of foreign trade for a country?
Decreased competition and access to new markets.
Economic growth and access to new markets and resources.
Reduced economic growth and limited market exposure.
Higher import costs and limited resources.
Check Answers
What is the role of government in foreign trade and balance of payments?
Formulating trade policies, regulating imports and exports, and managing the balance of payments.
Promoting exports, reducing imports, and attracting foreign investment.
Recording financial transactions and managing currency fluctuations.
Regulating domestic trade and overseeing monetary policy.
Check Answers
What factors can affect the balance of payments?
Climate change and natural disasters.
Exchange rates, trade policies, and economic conditions.
Political stability and social welfare programs.
Cultural traditions and religious beliefs.
Check Answers
How does a country improve its balance of payments?
Promoting exports, reducing imports, and attracting foreign investment.
Increasing imports, reducing exports, and limiting foreign investment.
Maintaining a trade deficit and devaluing the currency.
Implementing protectionist trade policies and restricting foreign investment.
Check Answers
What is the relationship between foreign trade and balance of payments?
Foreign trade has no impact on the balance of payments.
Foreign trade affects the current account and capital account balances in the balance of payments.
Foreign trade only affects the financial account balance in the balance of payments.
Balance of payments has no impact on foreign trade.
Check Answers
What are some challenges faced by the Indian economy in foreign trade and balance of payments?
Maintaining a favorable balance of trade, managing currency fluctuations, and competing in the global market.
Promoting import trade, attracting foreign investment, and reducing trade barriers.
Increasing import costs, limiting market exposure, and managing financial transactions.
Stabilizing currency value, regulating domestic trade, and implementing protectionist policies.
Check Answers
Explore Other Decks
Made for Grade 8
Low Level Languages, High Level Languages and Translation Programs
View Deck
Made for Grade 8
Maria Manoru 'Charlotte Obtaining... 13 Points'
View Deck
Made for Grade 3
Meghan Mac Donald 'Judy Moody meets a new teacher'
View Deck
Explore More