Foreign Trade Policy

. . . . . . . . is the investment by the nation in another nation in manufacturing or business either by purchasing a corporation or extending its business abroad.

Free trade' means
1. opening different sectors for the FDI inflow.
2. greater competition which, in turn, enhances efficiency.
3. development of new industries.
4. incentives for imports and exports.
Select the correct answer

Which of the following measures are take under TRIMS agreement?
1. Local content requirement
2. Foreign exchange balancing requirements
3. Import restrictions
4. Export performance requirements
5. Trade balancing requirements
Select the correct answer

A tax of 20% unit of imported cheese would be an example of a(an)

Challenges before international business such as Base Erosion and Profit Shifting (BEPS), tax avoidance and shifting between a holding company and a subsidiary located in two different tax sovereigns may be resolved by which one of the following?

Which of the following statements is fare correct?

Match the items of List-I with those of List-II and choose the correct answer.

List-I	List-II
a. Greenfield investments	1. Unique product or services sold in domestic market targeting international markets through its customers
b. Turnkey projects	2. Typical North-American process for rapid market expansion
c. Piggy backing	3. It is the most costly investments and holds the highest risk
d. Franchising	4. A project where the facility is built from the ground and turned over to the client ready to go

If a country has deficit in balance of current account, balance of capital account will be

International trade brings developing countries in context with

Assertion (A) Private foreign capital lends to flow to the high profit areas rather than to the priority sectors.
Reason (R) One of the important limitations to utilise the foreign capital is the absorptive capacity of the recipient country.