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Description
| SESSION | MARCH 2025 |
| PROGRAM | BACHELOR OF COMMERCE (B.COM) |
| SEMESTER | V |
| COURSE CODE & NAME | DCM3105 INTERNATIONAL TRADE AND FINANCE |
Set – 1
Q1. Distinguish between domestic and international trade.
Ans 1.
Trade
Trade is the exchange of goods and services between individuals or entities. When such trade occurs within the boundaries of a single country, it is termed domestic trade. In contrast, when trade takes place between different countries, it is known as international trade. While both types of trade involve buying and selling, they differ in terms of complexity, regulation, and scope.
Scope
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Q2. Discuss the various modes of entry in international trade.
Ans 2.
Market Entry
Entering international markets is a strategic decision for any business aiming to expand its reach beyond domestic borders. The choice of entry mode depends on factors such as market potential, investment capacity, risk appetite, and long-term goals. Each mode of entry has its own advantages, costs, and
Q3. Explain the different forms of the international factor movement. 10
Ans 3.
International Factor Movement
International factor movement refers to the cross-border movement of factors of production, primarily labour and capital, from one country to another. These movements are driven by differences in factor availability, economic opportunities, wage rates, return on investment, and government
Set – 2
Q4. Analyze the impact of customs, duties, quotas, and tariffs on international trade relations and the global economy. 10
Ans 4.
Trade Barriers
Customs, duties, quotas, and tariffs are government-imposed tools used to regulate the flow of goods across borders. These mechanisms influence the volume, direction, and terms of trade between countries. While intended to protect domestic industries or ensure national security, they
Q5. Elaborate the key components of International Banking. 10
Ans 5.
International Banking
International banking refers to the banking activities that deal with transactions crossing national borders. These services support international trade, global investment, and multinational operations. With globalization and the liberalization of economies, international banking has become a
Q6. Provide a comprehensive discussion on the structure and functioning of global markets.
Ans 6.
Global Markets
Global markets are integrated platforms where financial instruments, goods, and services are exchanged across national boundaries. These markets include capital markets, commodity markets, foreign exchange


