International Economics

51. The 'terms of trade' of a country refers to--

• ক. the rate at which domestic currency can be sold in foreign exchange markets
• খ. the difference between the value of exports and the value of imports
• গ. the system of tariff rates levied by the government of the country
• ঘ. the relationship between average import prices and average export prices

52. Why might a 10% devaluation of a country's currency fail to improve its balance of trade deficit?

• ক. Other countries devalue their currencies by 15%
• খ. Other countries revalue their currencies by 15%
• গ. The demand for the country's imports is elastic
• ঘ. The supply for the country's exports is elastic

53. What might explain an increase in the volume of a country's imports?

• ক. a recession in the country
• খ. a rise in the country's rate of income tax
• গ. an appreciation of the country's exchange rate
• ঘ. an increase in the country's tariffs

54. A country decides to allow its foreign exchange rate to float freely. Which item in the country's balance of payments accounts will become zero?

• ক. the current account balance
• খ. the visible trade balance
• গ. changes in official reserve of foreign currency
• ঘ. net investment overseas by domistic residents

55. How might an increase in interest rates lead to fall in a country's exchange rate?

• ক. It will produce a net inflow of short-term capital
• খ. It will cause inflation to fall thereby improving the country's competitiveness
• গ. It will depress economic activity leading to a fall in imports
• ঘ. It will harm the economy's growth prospects leading to a decrease in inward investment

56. Which reason for an import control allows a country to develop a potential comparative cost advantage in a particular good?

• ক. a tariff that improves an industry's terms of trade
• খ. a short-term tariff that protects an infant industry
• গ. a quota that protects jobs in a depressed region
• ঘ. an embargo on goods with negative externalities

57. 'Every country will import those goods which's cost of production is higher'. This speech has been quoted from of--

• ক. Absolute cost difference theory
• খ. Comparative cost difference theory
• গ. Iso cost difference theory
• ঘ. All of these

58. Which is the hypothetical condition of comparative cost theory?

• ক. Unit product
• খ. Free trade
• গ. Protection of trade
• ঘ. Monopoly market

59. In a certain period difference between visible and invisible import and export of a country is called to the--

• ক. balanced trade
• খ. imbalanced trade
• গ. balanced of trade
• ঘ. balanced of payment

60. Deficit in balance of trade means--

• ক. import of good > export of good
• খ. import of service > export of service
• গ. visible and invisible export > import
• ঘ. visible and invisible import > export

61. Which is the characteristic of the foreign trade of Bangladesh?

• ক. Export of industrial products
• খ. Favourable balance of trade
• গ. Export of food crops
• ঘ. Favourable terms of trade

62. Demand of exported product of Bangladesh to the foreign market--

• ক. Unitary elastic
• খ. Zero elastic
• গ. Elastic
• ঘ. Inelastic

63. Demand elasticity of imported product of Bangladesh--

• ক. Unitary elastic
• খ. Zero elastic
• গ. Elastic
• ঘ. Inelastic

64. Which is the cause of deficit foreign trade of Bangladesh?

• ক. high cost in invisible sector
• খ. self sufficiency in food production
• গ. export of readymade garment
• ঘ. price reduction of imported goods

65. Reduction of foreign exchange of domestic currency in terms of foreign currency is called--

• ক. Inflation
• খ. Deflation
• গ. Devaluation
• ঘ. Reduction of money supply

66. When $1 = Tk.70 turns into $1 = Tk.80 then it will be called--

• ক. Monetary contraction
• খ. Inflation
• গ. Devaluation
• ঘ. Reduction of money supply

67. If taka is devalued in terms of dollar then---

• ক. Import of American product will increase in Bangladesh
• খ. Price of Bangladeshi product will increase in America
• গ. Foreign exchange value of taka will increase comparison to dollar
• ঘ. Export of Bangladeshi product will increase in America

68. Wage earner scheme is an advantage to--

• ক. Emigrated Bangladeshi
• খ. Foreigner
• গ. Govt. officer
• ঘ. Member of the parliament

69. Where is no export promotion bureau?

• ক. Chittagong
• খ. Barisal
• গ. Khulna
• ঘ. Rajshahi

70. Which ministry is related to the export promotion bureau?

• ক. Trade and commerce
• খ. Finance
• গ. Industrial
• ঘ. Agricultural

71. When the first EPZ was established?

• ক. 1987
• খ. 1990
• গ. 1983
• ঘ. 1985

72. Trade that takes place between two countries or among more than two countries is called---

• ক. surplus trade
• খ. balanced trade
• গ. internal trade
• ঘ. international trade

73. Which is not the cause of deficit in foreign trade of Bangladesh?

• ক. adverse terms of trades
• খ. food deficit
• গ. export of readymade garment
• ঘ. import of industrial goods

74. BEPZA stands for--

• ক. Bangladesh Export Promotion Zone Association
• খ. Bangladesh Export Processing Zone Authority
• গ. Bangladesh Export Processing Zone Academy
• ঘ. Bangladesh Export Processing Zone Association

75. EPZ stands for--

• ক. Export Promotion Zone
• খ. Expert Promotion Zone
• গ. Export Processing Zone
• ঘ. Expert Processing Zone