INTERNATIONAL TRADE ACTUAL EXAM
PAPER 2026 QUESTIONS WITH SOLUTIONS
GRADED A+
●● imports Answer: good brought into the country
●● exports Answer: goods sent to other countries
●● why do countries specialize in certain products when they trade
Answer: to concentrate their efforts on producing a few goods and
services instead of everything they need
●● absolute advantage Answer: the ability to produce more of a given
product than someone else
●● comparative advantage Answer: The ability of a country to produce a
good at a lower opportunity cost than another country can.
●● law of comparative advantage Answer: a nation is better off when it
produces goods and services for which it has a comparative advantage
●● trade surplus Answer: Exports exceed imports
, ●● trade deficit Answer: An excess of imports over exports
●● is a trade surplus or deficit better for a country Answer: surplus
●● balance of trade Answer: relationship between a countries exports
and imports
●● positive or negative balance of trade Answer: positive
●● what would a positive or negative balance of trade say about the
economy of a country Answer: the value of their currency
●● balance of payment Answer: A measure of the total flow of money
into or out of a country.
●● positive or negative balance of payment Answer: positive
●● what does a negative balance of payment say about a country
Answer: in debt
●● what is the purpose of a trade barrier Answer: a way to stop or
slowdown certain foreign products from freely coming into a country
PAPER 2026 QUESTIONS WITH SOLUTIONS
GRADED A+
●● imports Answer: good brought into the country
●● exports Answer: goods sent to other countries
●● why do countries specialize in certain products when they trade
Answer: to concentrate their efforts on producing a few goods and
services instead of everything they need
●● absolute advantage Answer: the ability to produce more of a given
product than someone else
●● comparative advantage Answer: The ability of a country to produce a
good at a lower opportunity cost than another country can.
●● law of comparative advantage Answer: a nation is better off when it
produces goods and services for which it has a comparative advantage
●● trade surplus Answer: Exports exceed imports
, ●● trade deficit Answer: An excess of imports over exports
●● is a trade surplus or deficit better for a country Answer: surplus
●● balance of trade Answer: relationship between a countries exports
and imports
●● positive or negative balance of trade Answer: positive
●● what would a positive or negative balance of trade say about the
economy of a country Answer: the value of their currency
●● balance of payment Answer: A measure of the total flow of money
into or out of a country.
●● positive or negative balance of payment Answer: positive
●● what does a negative balance of payment say about a country
Answer: in debt
●● what is the purpose of a trade barrier Answer: a way to stop or
slowdown certain foreign products from freely coming into a country
