Comprehension


Direction: In the following questions, you have two brief passages with 5 questions following each passage. Read the passages carefully and choose the best answer to each question out of the four alternatives.
PASSAGE
International trade represents a significant share of Gross Domestic Product (GDP). While international trade has been present throughout much of history, its economic, social and political importance has been on the rise in recent centuries. Industrialization, advances in tecnology, transportation, globalization, multinational corporations, and outsourcing are all having a major impact on the international trade system. Increasing international trade is crucial to the continuance of globalization. International trade is, in principle, not different from domestic as the motivation and the behaviour of parties is across a border or not. The main difference is that international trade. Another difference between domestic and international trade is that factors of production such as capital and labour are typically more mobile within a country than across countries.

  1. What is the main difference between international and domestic trade?









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    One is more costly than the other

    Correct Option: B

    One is more costly than the other


  1. According to the author, increasing international trade









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    is crucial to the continuance of globalization

    Correct Option: C

    is crucial to the continuance of globalization



  1. Which one of the following has a major impact on international trade?









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    Industrialization

    Correct Option: B

    Industrialization


  1. What is the synonym of mobile?









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    Moveable

    Correct Option: B

    Moveable



  1. Which of the following is one of the factors of production?









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    Capital

    Correct Option: A

    Capital