One of the problems of India's Foreign Trade is

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UP TGT Commerce 2019 Official Paper
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  1. Payment of imports in rupees
  2. Increasing quantity of exports
  3. Unfavorable terms of trade
  4. None of the above

Answer (Detailed Solution Below)

Option 3 : Unfavorable terms of trade
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Detailed Solution

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The correct answer is Unfavorable terms of trade.

Key Points

  • The key element in any country's economic development is foreign trade.
  • All imports and exports into and out of India are considered part of the country's foreign trade.
  • Such operations are managed by the Ministry of Commerce and Industry at the Central Government level.

Important Points

  • Payment of imports in rupees, this option is not a problem for India's foreign trade instead it is favourable condition for India's Foreign Trade.
  • Increasing Quantity of exports is not a problem for foreign trade because it will boost balance of payment of economy.
  • Unfavourable terms of trade can cause problems in foreign trade, like payment for export in international currency etc.
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