O Level Geography of Pakistan chapter 6: Trade MCQs with answers
By Team Megalecture · Updated 4 Nov 2026
26 exam-style questions on Trade, each with the answer and a short explanation. Ten of them are below to try. The chapter test draws ten fresh questions each time and is marked the moment you finish, with your score by topic.
Try each one, then open the answer. These ten stay the same; the test draws new ones every time.
1. How has the type of cotton goods that Pakistan exports changed since the 1950s?
A
a shift from garments and cloth back towards exporting raw cotton
B
a shift from raw cotton towards yarn, cloth and garments
C
cotton goods are no longer exported to any country at all
D
cotton is now exported mainly as cottonseed
Show answer
Answer: B. In the early years raw cotton (and jute from East Pakistan) dominated exports. As spinning, weaving and garment industries grew, Pakistan came to export mainly processed, higher-value textiles.
2. What does gross domestic product (GDP) measure?
A
the value of goods and services produced inside a country in a year
B
the value of a country’s exports of goods minus its imports of goods
C
the total income earned by a country’s residents at home and abroad
D
the total amount of money that a country owes to foreign banks and lenders
Show answer
Answer: A. GDP counts output produced inside the country’s borders. Exports minus imports is the balance of trade, and income earned by residents at home and abroad is GNP.
3. Floods destroy much of Pakistan’s cotton crop in one year. What is the most likely effect on its trade?
A
oil imports fall because less fuel is used for harvesting
B
the trade balance improves as less fertiliser is imported
C
rice exports rise by enough to make up for all the lost cotton exports
D
textile exports fall and cotton imports rise, widening the deficit
Show answer
Answer: D. Cotton is the raw material of Pakistan’s largest export industry. A poor crop means mills produce and export less and may have to import cotton, so the trade deficit widens.
4. Which goods does Pakistan mainly export to the USA and the countries of the European Union?
A
crude oil and liquefied natural gas
B
cement, wheat flour and sugar
C
heavy machinery and chemicals
D
textiles such as towels and garments
Show answer
Answer: D. The USA and the EU are the biggest markets for Pakistan’s textile products. Pakistan imports, rather than exports, oil, gas, heavy machinery and many chemicals.
5. Why is it difficult for Pakistan, as a developing country, to increase its share of world trade?
A
it has too few workers to staff its export industries
B
it relies on a few low-value exports facing strong competition
C
developed countries refuse to buy any cotton textiles
D
it has no seaport that is able to handle the large container ships
Show answer
Answer: B. Most of Pakistan’s export earnings come from textiles, where countries such as China, Bangladesh and India compete on price. Energy shortages and strict quality standards add to the difficulty.
6. Why does Pakistan import large quantities of palm oil?
A
palm oil is the main raw material for urea
B
it is re-exported at a profit to Europe
C
it is the main fuel for thermal power stations
D
home production of edible oil does not meet demand
Show answer
Answer: D. Pakistan grows some oilseeds, such as cottonseed, sunflower and canola, but not enough for its large population, so palm oil for cooking oil and ghee is imported, adding to the import bill.
7. A Sialkot firm sells footballs to Europe for $10 each. The exchange rate changes from Rs 200 = $1 to Rs 250 = $1. How many more rupees does the firm now receive for each football?
A
Rs 50
B
Rs 500
C
Rs 2,000
D
Rs 2,500
Show answer
Answer: B. Before: 10 × 200 = Rs 2,000; after: 10 × 250 = Rs 2,500, an increase of Rs 500. A fall in the rupee helps exporters but raises the rupee cost of imported materials.
8. Why does a trade deficit that lasts for many years cause problems for Pakistan’s economy?
A
factories are forced to export more goods than they can produce
B
imported goods become cheaper in rupees with every passing year
C
it must borrow or use foreign reserves to pay for imports
D
the rupee rises in value against other currencies
Show answer
Answer: C. Imports must be paid for in foreign currency. If exports do not earn enough, the gap is covered by loans or reserves, which adds to debt and puts downward pressure on the rupee.
9. What is meant by a balance of trade deficit?
A
the value of exported goods is greater than the value of imported goods
B
the government spends more than it collects in taxes
C
the amount of goods traded falls from one year to the next
D
the value of imported goods is greater than the value of exported goods
Show answer
Answer: D. The balance of trade compares the value of exports and imports of goods. A deficit means more is spent on imports than is earned from exports. Government spending more than it collects is a budget deficit.
10. Which goods does Pakistan mainly import from Saudi Arabia, the UAE and Kuwait?
A
crude oil and petroleum products
B
machinery and electronic goods
C
palm oil and black tea
D
vehicles and spare parts
Show answer
Answer: A. These Gulf states are major oil producers close to Pakistan. Machinery and electronics come largely from China, and vehicles and parts from countries such as Japan.
26, each with the answer and a short explanation, across 2 topics: Exports and imports, Trading partners. Every chapter test draws ten of them, so you can take it many times.
Is the O Level Geography of Pakistan chapter 6 test free?
Yes. The test, the answers and the explanations are free and need no sign-up. Sign in only if you want your scores kept across devices.
How is the chapter test marked?
The moment you press Finish: your score, the right answer and an explanation for every question, and the ones you got wrong saved in My mistakes to retry.
