Statement I 'Free trade' leads to specialisation and thereby to increased output.
Statement II Import restrictions are both long-term and short-term measures of Balance of Payment adjustments.
A. Statement I is true, but Statement II is false
B. Statement II is true, but Statement I is false
C. Both statements are false
D. Both statements are true
Answer: Option A
Related Questions on Foreign Trade Policy
A. Importing
B. Exporting
C. Franchising
D. Joint Ventur
Foreign trade helps each country to make . . . . . . . . use of its natural resources.
A. optimal
B. loss
C. better
D. none of these
The effects of foreign trade on the domestic economy maybe at
A. Micro level
B. Macro level
C. Both A and B
D. Neither A nor B
A. Chief controller of Imports and Exports
B. Director General of Foreign Trade
C. Director General of Commercial Intelligence
D. Chief Controller of Foreign Trade

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