Identify the correct statements about International Trade.
(A) Volume, sectoral composition and direction are important aspects of International Trade.
(B) Volume of trade is considered in value terms instead of tonnage.
(C) During the first half of 20th century, primary products dominated international trade.
(D) During European colonialism slave trade was replaced by barter trade.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A), (B) and (C) only
International trade is the exchange of goods and services among countries across national boundaries.
(A) Volume, sectoral composition and direction are important aspects of International Trade. — Correct. These are the three important aspects of trade. Volume is how much is traded, composition is what kinds of goods and services are traded, and direction is with which countries.
(B) Volume of trade is considered in value terms instead of tonnage. — Correct. Services cannot be weighed in tonnes. So the total value of goods and services traded is taken as the volume of trade.
(C) During the first half of 20th century, primary products dominated international trade. — Correct. Trade of primary products was dominant in the beginning of the last century, that is, the early 1900s. Later, manufactured goods gained prominence.
(D) During European colonialism slave trade was replaced by barter trade. — Incorrect. It happened the other way round. Barter was the earliest form of trade, used in primitive societies before money. Slave trade was a new form of trade that began with European colonialism from the fifteenth century onwards.
Note: Statements (A), (B) and (C) are taken from the pre-rationalised NCERT book. The latest edition (2026-27) does not have this part. An extract of the pre-rationalised NCERT book is given below for the benefit of students.
NCERT (2026-27): “International Trade … The initial form of trade in primitive societies was the barter system, where direct exchange of goods took place.” “HISTORY OF INTERNATIONAL TRADE … Fifteenth century onwards, the European colonialism began and along with trade of exotic commodities, a new form of trade emerged which was called slave trade.”
Pre-rationalised NCERT: “Important Aspects of International Trade … International trade has three very important aspects. These are volume, sectoral composition and direction of trade.” “Volume of Trade … The actual tonnage of goods traded makes up the volume. However, services traded cannot be measured in tonnage. Therefore, the total value of goods and services traded is considered to be the volume of trade.” “Composition of Trade … Trade of primary products was dominant in the beginning of the last century.” |