Two countries can gain from foreign trade if

Related MCQs

• Trade between two countries is called
• When supply of foreign exchange is increased given the demand for foreign exchange, the rate of exchange _.
• Services rendered by the domestic country to foreign counter parts increase the _ of foreign exchange.
• According to Adam Smith, international trade is advantageous for all participating countries only if they enjoy _ difference in cost of production
• Terms of trade of less developed countries are generally unfavourable because
• According to H-O theory, International trade is, but a pecial case of _ _ trade.
•     _ refers to the process of buying and selling a foreign currency in two different market at same time.
• The rate at which goods are exchangeed between two countries is called
• According to the Purchasing Power Parity theory, the rate of exchange between the currencies of two countries is determined by_                      
• Restrictions on the use of foreign exchange by the Central bank are called _ .