Question : Which of the following is not a type of international trade?
Option 1: Merchandise trade
Option 2: Services trade
Option 3: Investment trade
Option 4: Capital trade
Correct Answer: Capital trade
Solution :
The correct answer is (d) Capital trade.
"Capital trade" is not a recognized term in the context of international trade.
The three main types of international trade are:
a) Merchandise trade: This refers to the exchange of tangible goods between countries. It includes the import and export of products such as machinery, vehicles, electronics, clothing, and agricultural goods.
b) Services trade: This involves the exchange of intangible services between countries. It includes activities such as tourism, transportation, financial services, consulting, and telecommunications.
c) Investment trade: This term is not commonly used in the context of international trade. However, it can refer to the flow of financial capital across borders, including investments in stocks, bonds, and other financial assets.
