Distinction Between Domestic And International Trade - SS3 Economics Past Questions & Answers - page 1

1

What is the main difference between domestic and international trade?

A

Domestic trade takes place within a country's borders, while international trade involves transactions between different countries

B

Domestic trade involves the exchange of goods and services within a region, while international trade involves transactions across continents

C

Domestic trade is subject to fewer regulations than international trade

 

D

Domestic trade is limited to physical marketplaces, while international trade is conducted exclusively online

CORRECT OPTION: a
2

Which of the following is an example of domestic trade?

A

An American company importing goods from China

B

A farmer selling produce to a local grocery store

C

A French company exporting wine to Germany

D

A British firm investing in a factory in India

 

CORRECT OPTION: b
3

What is one key challenge associated with international trade?

A

The complexity of regulations and logistics

B

Limited access to global markets

 

C

Lack of interest from foreign buyers

D

Reduced competition among suppliers

CORRECT OPTION: a
4

Which of the following is a potential benefit of domestic trade?

A

 Increased access to global markets

B

Greater cultural diversity

C

Lower transportation costs

D

Reduced competition among suppliers

 

CORRECT OPTION: c
5

What is one way that international trade differs from domestic trade in terms of regulations?

A

 International trade is subject to more regulations than domestic trade

B

Domestic trade is subject to more regulations than international trade

C

International and domestic trade are subject to the same regulations

D

Regulations do not apply to either international or domestic trade

CORRECT OPTION: a
6

How does domestic and international trade differ in terms of the geographic scope of transactions?

 

Domestic trade takes place within a country's borders, while international trade involves transactions between different countries.

7

What are some of the key factors that can affect the regulation and logistics of international trade?

 

Some key factors that can affect the regulation and logistics of international trade include differences in legal systems, cultural norms, economic policies, and infrastructure across countries, as well as trade agreements, tariffs, and international organizations that govern trade relations between countries.

Pages: