India Foreign Trade And Policy Set 2

QN1. A situation where any advantage given by one member of the WTO to another member must be extended to all WTO members.

a) The excessive invoicing principle

b) The comparative advantage principle

c) The intra-regional principle

d) The most favored nation principle

Answer

Answer: b) The comparative advantage principle

QN2. A situation where countries export a product at a price below the cost of its production.

a) Full cost pricing

b) Price skimming

c) Dumping

d) Price discrimination

Answer

Answer: c) Dumping

QN3. “SEZ” was launched in which year ?

a) 1999

b) 2000

c) 2004

d) 1992

Answer

Answer: c) 2004

QN4. .”Millennium Development Goals” are introduced by ____?

a) United Nations Organization

b) World Bank

c) ASEAN

d) IMF

Answer

Answer: a) United Nations Organization

QN5. Vishesh Krishi Upaj Yojana was announced as part of the Special focus Initiative for agriculture in the Foreign Trade Policy in

a) 2003

b) 2004

c) 2005

d) 2006

Answer

Answer: b) 2004

QN6. As part of commitment to WTO India transited to a product patent regime from

a) January 1, 2005

b) December 31 2004

c) January 1, 2006

d) January 1, 2004

Answer

Answer: a) January 1, 2005

QN7. Which of the following is not the role of IMF?

a) Country Surveillance

b) Financial Assistance to members to correct balance of payments problems

c) Technical assistance in its areas of expertise

d) Dispute Settlement

Answer

Answer: c) Technical assistance in its areas of expertise

QN8. The various rounds of multilateral trade negotiations carried out under the auspices of the GATT have

a) Addressed mainly the concepts, principles and rules of the GATT;

b) Dramatically reduced tariffs worldwide, in particular in developed countries;

c) Worked towards the establishment of the WTO; or,

d) Established global standards to be enforced by the dispute settlement mechanism.

Answer

Answer: c) Worked towards the establishment of the WTO; or,

QN9. In the context of the WTO Agreements, “non discrimination” means:

a) Products imported from all trading partners should be given the same treatment as national products;

b) Once in the domestic market, imported goods and services from all trading partners cannot be treated differently from domestic products;

c) All trading partners should be extended “most favoured” nation;

d) A WTO Member can impose customs duties, but once the imported product has cleared customs, it cannot be treated less favourably than the like national product.

Answer

Answer: b) Once in the domestic market, imported goods and services from all trading partners cannot be treated differently from domestic products;

QN10. The “Enabling Clause” favours WTO developing country members by:

a) Exempting them from the Most Favoured Nation obligations;.

b) Permitting them to raise bound tariffs;

c) Providing the legal possibility for developed countries to offer them more favourable treatment in terms of tariff preferences; or,

d) Encouraging developing country Members to grant duty free access to products imported from other developing countries.

Answer

Answer: d) Encouraging developing country Members to grant duty free access to products imported from other developing countries.

QN11. The Anti-dumping Agreement:

a) Allows States to react against dumping, that causes injury to the competing domestic industry;

b) Can be invoked when a company exports a product at a price lower than the price it normally charges on its own home market;

c) Requires States to act against dumping; or,

d) Can be invoked when the unfair competition practiced by a company causes injury to the domestic market.

Answer

Answer: a) Allows States to react against dumping, that causes injury to the competing domestic industry;

QN12. Technical barriers to trade are regulations that are:

a) Never permitted in Member countries;

b) Admissible as long as they do not offer disguised protection to domestic industry, and do not create unnecessary obstacles to trade;

c) Admissible only when international standards are employed; or,

d) Always admissible provided that they are directed to protect human, animal or plant life in a WTO Member country.

Answer

Answer: b) Admissible as long as they do not offer disguised protection to domestic industry, and do not create unnecessary obstacles to trade;

QN13. Customs and administrative procedures:

a) Are used to protect the local industry;

b) Cannot be maintained by WTO Members;

c) Are subjected to non-discrimination and transparency by the relevant agreements; or,

d) Are not dealt with in the WTO.

Answer

Answer: c) Are subjected to non-discrimination and transparency by the relevant agreements; or,

QN14. The GATS differs from GATT among other things, because:

A) It does not adopt the principle of non discrimination rule with respect to trade in services;

B) It provides the same rules as GATT, but it applies them to domestic regulation, rather than to tariffs;

C) National treatment is not an obligation under the GATS;

D) The GATS has Sect oral Annexes that modify the application of the Agreement.

Answer

Answer: C) National treatment is not an obligation under the GATS;

QN15. The need for “balance” under TRIPS means that:

a) Having balance between the protection of the inventor’s rights and the interest of producers, users and society at large;

b) Only creations which benefit the society at large are covered by the Agreement;

c) The level of protection accorded to a creation is proportional to the social need for it; or,

d) The patenting of an invention is only permissible if it results in an incentive to the development of new technology.

Answer

Answer: d) The patenting of an invention is only permissible if it results in an incentive to the development of new technology.

QN16. Ministerial Conferences are:

a) Periodic rounds of negotiations;

b) Meetings of ministers with the sole objective of launching new multilateral trade negotiations;

c) Enlarged meetings of the General Council, which take place every two years;

d) Periodic meetings of ministers in charge of WTO matters.

Answer

Answer: d) Periodic meetings of ministers in charge of WTO matters.

QN17. The Doha Development Agenda:

a) Sets development of developing countries as the basic goal of the work programme contained in the Doha Ministerial Declaration;

b) Is a broad work programme addressed to developing countries;

c) launched a new round of negotiations on market access, trade and environment, TRIPS, and the Singapore issues; or,

d) Set a three years deadline for the opening of agriculture and industrial goods market, to the benefit of developing countries.

Answer

Answer: a) Sets development of developing countries as the basic goal of the work programme contained in the Doha Ministerial Declaration;

QN18. What are the forms of assistance that the World Bank provides to its members?

a) Technical and financial

b) Political and financial

c) Political and economic

d) Technical and military

Answer

Answer: a) Technical and financial

QN19. The World Bank Group is made up of how many organisations?

a) 3

b) 5

c) 8

d) 10

Answer

Answer: b) 5

QN20. Which organisation of the World Bank Group deals with matters related to the development of the poorest countries in the world?

a) The International Bank for Reconstruction and Development

b) The International Development Association

c) The International Finance Corporation

d) The Multilateral Investment Agency

Answer

Answer: b) The International Development Association

QN21. What are countervailing measures?

a) Measures which a State may initiate against another State when that other State has legally subsidized any of its domestic industries

b) Measures which a national government may initiate against another State when that other State has not subsidized any of its domestic industries

c) Measures which a State may initiate against another State when that other State has illegally subsidized any of its domestic industries

d) Measures which a national government may initiate against another State when that other State has not illegally subsidized any its domestic industries

Answer

Answer: c) Measures which a State may initiate against another State when that other State has illegally subsidized any of its domestic industries

QN22. EPCG is an initiative of government of India to allow duty free import of

a) Raw material

b) Fuel

c) Capital Goods

d) Semi finished products

Answer

Answer: c) Capital Goods

QN23. Which of the following is not a Town of Excellence as per the Foreign Trade Policy of India

a) Jodhpur

b) Karur

c) Kollam

d) Jaipur

Answer

Answer: c) Kollam

QN24. Main objective of the Focus Market Scheme of the Foreign Trade Policy of India is to

a) Offset high freight cost and other externalities to select international markets

b) Incentives export of such products, which have high employment intensity in rural and semi urban areas

c) Incentives export of High Technology products

d) promote export to focus countries

Answer

Answer: b) Incentives export of such products, which have high employment intensity in rural and semi urban areas

QN25. Which of the following is a duty remission scheme as per FTP of India?

a) Advance Authorization

b) Duty Entitlement Passbook scheme

c) Advance Release Order

d) Duty Free Import Authorization

Answer

Answer: d) Duty Free Import Authorization

QN26. Pre-shipment finance is provided to the Indian exporter by EXIM bank for

a) Providing access to finance at the manufacturing stage

b) Providing finance before shipping the goods

c) Financial assistance for providing credit to the overseas buyer

d) Providing finance to the foreign buyer

Answer

Answer: c) Financial assistance for providing credit to the overseas buyer

QN27. What is the role of the IMF?

a) It controls the budgets of national governments

b) It acts as a forum for international economics

c) It observes world exchange rates, balance of payments and multilateral payments

d) It seeks to promote free international trade

Answer

Answer: b) It acts as a forum for international economics

QN28. Who is currently the governor of IMF for India?

a) Mr. Pranab Mukherjee

b) Dr. Manmohan Singh

c) Dr. Montek Singh Ahluwalia

d) Dr. D. Subbarao

Answer

Answer: d) Dr. D. Subbarao

QN29. Which country has the largest quota with IMF?

a) USA

b) EU

c) Canada

d) China

Answer

Answer: a) USA

QN30. Who is currently the Managing Director of IMF?

a) Mr. Pascal Lamy

b) Mr. Dominique Strauss-Kahn

c) Mr. Robert B. Zoellick

d) H.E. Dr. Ali Abdussalam Treki

Answer

Answer: b) Mr. Dominique Strauss-Kahn

QN31. Which of the following is not a role of IMF?

a) Country Survellience

b) Providing Financial Assistance

c) Conduction technical sessions

d) Take initiatives for reform for climate change

Answer

Answer: d) Take initiatives for reform for climate change

QN32. EXIM Bank of India was setup in the year

a) 1981

b) 1975

c) 1990

d) 1995

Answer

Answer: a) 1981

QN33. Which of the following is not the role of EXIM Bank?

a) Technical assistance

b) Financing

c) Develop Policy for Export and Import

d) Research

Answer

Answer: a) Technical assistance

QN34. The World Bank consists of the Bank itself and:

a. The International Bank for Reconstruction and Development.

b. The International Finance Corporation.

c. Multilateral Development Banks.

d. The International Monetary Fund.

Answer

Answer: a. The International Bank for Reconstruction and Development.

QN35. The International Monetary Fund Articles of Agreement were adopted at the Bretton Woods Conference in 1944. In general terms, the International Monetary Fund’s objectives today are, to foster:

e. Fixed exchange rates.

f. Balance of payments disequilibria.

g. Convertible currencies

h. Predictable supplies of capital to developing nations.

Answer

Answer: h. Predictable supplies of capital to developing nations.

QN36. The Bank for International Settlements deals with:

a. Private individuals.

b. Corporations.

c. Governments.

d. Other banks.

Answer

Answer: c. Governments.

QN37. The World Trade Organization, headquartered in Geneva, Switzerland currently has _____member countries.

e. 130

f. 140

g. 150

h. 153

Answer

Answer: h. 153

QN38. Which of the following is not a duty exemption / remession scheme in FTP of India?

a) DEPB

b) Advance Authorization

c) Duty Drawback

d) ECGC

Answer

Answer: b) Advance Authorization

QN39. Which of the following categories of supply of goods by main / subcontractors

Is not regarded as “Deemed Exports”

a) Supply of goods to EOU

b) Supply to projects funded by UN Agencies;

c) Supply of goods to DTA

d) Supply of goods against Advance Authorisation

Answer

Answer: c) Supply of goods to DTA

QN40. The Foreign Trade Policy of India is prepared by

a) DGFT

b) DGCI&S

c) EXIM Bank

d) WTO

Answer

Answer: a) DGFT