Domestic and Factors Affecting Domestic Trade

Q. Which of the following justifies the importance of domestic trade?

1. Domestic trade increases the value of a country's currency.
2. Domestic trade improves the relations between the state governments of a country.
3. Domestically traded goods are cheaper than imported goods.
4. Domestic trade helps fulfil the needs of a large and diverse population of a country.

Q.

In International market the food grains are sold in kilograms

1. True
2. False

Q. Identify the factor that affects domestic trade.

1. Political relations and government policies
2. Value of currency
3. Judicial system and laws
4. Transport and communication facilities

Q. What is the exchange of goods and services between different regions within the same country known as?

1. Internal trade
2. International trade
3. Import
4. Export

Q. Why is trade a necessary activity in India?

1. India has a huge and diverse population.
2. India does not have favourable geographical conditions to produce as per its needs.
3. Rich people in India have more needs.
4. All regions in India are self-sufficient.

Q. There is relation between the standard of living of people and the volume of trade.

1. constant
2. direct
3. indirect
4. no relation

Q. A businessman from Assam sells tea leaves to a businessman from Maharashtra who, in turn, sells it to a businessman from Goa.

Which of the following will impact the trade between the three businessmen?

1. Low standard of living of the people of Goa
2. Communication facilities in Maharashtra
3. Higher value of the Indian rupee
4. Favourable geographical conditions in Assam

Q. The apples of Jammu are enjoyed even by the people of Kolkata. Which of the following factors enables such a trade?

1. Standard of living
2. Availability of natural resources
3. Transportation facilities
4. Population size

Q. India's port in Mumbai imports iron from the USA. Some of the iron is sent to Delhi, while the surplus is exported to Sweden.

Identify the factors that will affect the trade.

1. Quality of roads and highways from Mumbai to Delhi
2. Value of Indian currency with respect to Sweden's currency
3. Judicial system, and the laws of Maharashtra and Delhi
4. Political relations between India and Sweden