61 On whose views the Modern theory of international trade is based?

Heckcsher and Ohlin

62 What is the effect of a tariff?

Reduces the volume of trade

63 What does dumping means?

Sale of goods abroad at a low price, below their cost and price in home market

64 The two countries can gain more from foreign trade if cost ratios and

Price ratios are different

65 What does term of trade of a country shows?

Ratio of prices of exports and imports

66 In a free trade world in which no trade restrictions exist, where international trade will lead us to?

Increased efficiency

67 What does government policy about exports and imports is called?

Commercial policy

68 How the trade between two countries can be encouraged?

Reduced tariff

69 Terms of trade between two countries refers to the ratio of

Export prices to import prices

70 What does protection policy means in foreign trade?

Restrictions on imports