Foreign Trade Policy — Part 1 MCQs with Explanations

Exporting is the correct answer to “Which of the following is the most well established and conventional form of operating in foreign market”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

optimal is the correct answer to “Foreign trade helps each country to make . . . . . . . . use of its natural resources.”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

Director General of Foreign Trade is the correct answer to “As per the Foreign Trade (Development and Regulation) Act, 1992, who advises the Central Government in the formulation of Export and Import Policy”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

a UK energy company buying territory abroad where it expects to find oil reserves is the correct answer to “Foreign Direct Investment (FDI) involves”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

convertible is the correct answer to “Official reserves are comprised of gold, SDRs and . . . . . . . . foreign exchange.”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

All statements are correct is the correct answer to “Which of the following statement is correct? Statement I The GATS is broadly categorised into two parts the national 'schedules' which list individual countrie's specific commitments on access to their domestic markets by foreign suppliers and the framework agreement that contains the rules and disciplines. Statement II The commitments as per GATS must be applied on the basis of non-discrimination. Statement III GATS also give full liberty to the members to choose which services to commit for opening up.”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

Policy framework is the correct answer to “Which of the following is not a 'pillar' of AoA agreement”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

World Bank must lend for specific projects only that are technically and economically sound and have ability to generate high returns is the correct answer to “Which of the followmg is not a condition that should be followed by the World Bank while granting loan to member nations”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

1, 3, 5, 6, 7 is the correct answer to “Which of the following currencies are used to determine the value of SDR? 1. Euro 2. Indian Rupee 3. Japanese Yen 4. Chinese Yuan 5. US Dollar 6. Pound Sterling 7. Chinese Renminbi Select the correct answer”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

Both A and B is the correct answer to “Rapid economic development or economic growth requires most efficientuse of the”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

World Trade Organisation is the correct answer to “The organisation that currently establishes rules of conduct for firms engaging in international trade is the”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

a-1, b-2, c-4 is the correct answer to “Match the following with regard to withdrawing measures lender TRIMS. List-I (Nations) List-II (Provisions) a. Developed countries 1. Within 2 years of date of entry in WTO b. Developing countries 2. Within 5 years of date of entry in WTO c. Least Developed countries 3. Within 3 years of date of entry in WTO 4. Within 5 years of date of entry in WTO”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

USA's exports were labour intensive and imports were capital intensive is the correct answer to “The Leontief paradox stated that”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

voluntary export restraints is the correct answer to “Bilateral agreements that restrict exports are called”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

measures that lead to restrictions in quantities is the correct answer to “Trade Related Investment Measures (TRIMS) doesn't apply for”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

All of the above is the correct answer to “Which of the following statement is not correct with regard to turnkey project”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

a-4, b-2, c-1, d-3 is the correct answer to “Match the following. List-I (Theories of International Trade) List-II (Founders) a. Theory of reciprocal demand 1. David Ricordo b. Theory of absolute advantage 2. Adam Smith c. Theory of comparative advantage 3. Raymond Vernon d. Product life cycle theory of trade 4. John Stuart Mill”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

The Uruguay Round Agreement is the correct answer to “An efficient dispute settlement mechanism under WTO was brought in by which one of the following”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

It is the universal intellectual property law is the correct answer to “Which of the following statement is not correct with regard to TRIPS agreement”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

Can earn a return on knowledge asset is the correct answer to “Which of the following is an advantage of turnkey projects”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

1, 3 and 6 is the correct answer to “For which of the following sectors, the FDI cap/equity is 100%? 1. Mining including exploration and mining of diamonds 2. Defence production 3. Drugs and pharmaceuticals 4. Insurance 5. Banking 6. Power (except atomic energy) Select the correct answer”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

Export promotion is the correct answer to “Which industrialisation policy have developing countries used which places emphasise on the comparative advantage principle as a guide to resource allocation”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

Geographical Indication of Goods (Registration and Protection) Act, 1999 is the correct answer to “To comply with the requirement of TRIPS agreement and to protect products of Indian origin, which one of the following was enacted”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

ad valorem tariff is the correct answer to “A tax of 15% per imported item would be an example of a (an)”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

2, 3, 4, 5 is the correct answer to “Which of the following are included in the canalised list? 1. Seeds, plants and animals 2. Crude oil 3. Motor spirit 4. Cereals 5. Non-edible oils 6. Nitrogenous and potassic phosphatic fertilisers 7. Communication jamming equipments 8. Animal rennet Select the correct answer”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

1, 2, 6, 7, 8, 9, 10 is the correct answer to “Which of the following documents are required in export documentation? 1. Commercial invoice 2. Guaranteed remittance (GR) form 3. Certificate of measurement 4. Certificate of inspection 5. Freight declaration 6. Shipping bill 7. Consular invoice 8. Certificate of origin 9. Bill of lading 10. Mate's receipt Select the correct answer”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

the naive rule is the correct answer to “The rule where by the decision maker systematically compares and evaluates all entry modes before any choiceis made is also known as”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

maintain a non-discriminatory structure of tariffs is the correct answer to “The effect of the most favoured nation (normal trade relations) clause is to”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

Loro account is the correct answer to “If a bank in India, SBI, has an account with Citibank, Newyork and another Indian Bank, Allahabad Bank wants to refer to that account while corresponding with Citibank, Newyork, the Allahabad Bank would refer to which one of the following accounts”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

all of the above is the correct answer to “The capital account consists of”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

All of the above is the correct answer to “Which of the following are results of Bretton Woods's Conference? 1. Creation of IMF. 2. Creation of IBRD. 3. Fixed exchange rate system based on gold and the dollar. 4. The first Agreement on Tariffs and Trade (GATT). Select the correct answer”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

differences in factor endowments is the correct answer to “Heckscher-Ohlin theory explains international trade in terms of”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

all of these is the correct answer to “Stages of PLC include”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

all of these is the correct answer to “The Indian Government has classified importers into”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

To encourage foreign direct in developoing countries by protecting investors from non-commercial risk is the correct answer to “Multilateral Investment Guarantee Agency (MIGA), an affiliate of World Bank, aims to address which one of the following”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

Both 1 and 5 is the correct answer to “Which of the following items are not patentable? 1. Frivolous invention or which claims anything which is dearly opposite to the natural laws. 2. Computer hardware. 3. Patent capable of being worked and some commercial utility. 4. Inventions related to method of horticulture or agriculture. 5. Food inventions. 6. Medicines, computer software, biological invention. Select the correct answer”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

Only 1 is the correct answer to “Which of the following statements(s) is/are correct about WTO? 1. Belarus is not a member of WTO. 2. Ministerial Conferenceis highest decision-making body of WTO meets annually.”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

They have been established by the Indian Government to promote some of the traditional commodities that have high export potential in the global market is the correct answer to “Which of the following statement is not true for FIEO”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

India is the correct answer to “Which of the following is not a largest shareholder of IMF”. This question is standard in competitive examination syllabi for Foreign Trade Policy.

Both A and B is the correct answer to “Most tariffs have”. This question is standard in competitive examination syllabi for Foreign Trade Policy.