Foreign Trade Policy

61

Which of the following is not correct about EPCG scheme?

A) It enables the manufacturing exporter to import machinery and other capital equipment without paying custom duty or paying concessional custom duty B) The exporter guarantees export to a minimum value which should be expressed in the multiple value of the capital goods that have been imported C) It comprises of Zero Duty EPCG and Concessional 5% Duty EPCG D) Under Zero Duty EPCG, the exporter is obliged to export where the export value is equal to the 6 times of duty saved on the capital goods that have been imported

Discuss

Answer & Solution

Answer: Option C

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62

Match the following.

List-I	List-II
a. Importing	1. Modes of international business
b. Marketing	2. Functions of international business
c. Sales expansion	3. Objectives of international business
d. Economic forces	4. External influence

A) a-1, b-2, c-3, d-4 B) a-3, b-1, c-4, d-2 C) a-2, b-1, c-4, d-3 D) a-4, b-3, c-2, d-1

Discuss

Answer & Solution

Answer: Option A

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63

Match the following.

List-I	List-II
a. Adam Smith	1. Availability
b. David Ricordo	2. Endowment
c. Ohlin	3. Absolute advantage
d. I. B. Kravis	4. Comparative advantage

A) a-1, b-2, c-3, d-4 B) a-2, b-4, c-3, d-1 C) a-3, b-4, c-2, d-1 D) a-4, b-3, c-1, d-2

Discuss

Answer & Solution

Answer: Option C

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64

According to RBI, which of the following are characteristic of FDI?

A) The undistributed profits which are invested in the affiliates in the host country are not counted as actual FDI inflows B) The overseas commercial borrowings (like bonds, grants, trade credits, financial leasing) are also excluded from FDI inflows C) If a non-resident initially buys 10% or more equity through portfolio route but buys additional shares in subsequent transactions and holds investment over 10% these additional shares will be regarded as a part of FDI D) All of the above

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Answer & Solution

Answer: Option D

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65

The comparative cost theory of international trade was developed by

A) David Ricardo B) Haberler C) Adam Smith D) Alfred Marshall

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Answer & Solution

Answer: Option A

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66

One of the following is not a main external factor affecting the choice for market entry mode

A) international experience B) demand uncertainty C) market size D) intensity of competition

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Answer & Solution

Answer: Option A

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67

The Indian Government has adopted internationally acknowledged standard for documentation known as

A) ATC B) TBT C) ADS D) ASD

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Answer & Solution

Answer: Option C

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68

The trade theory of comparative advantage was developed by

A) Haberler B) Adam Smith C) Alfred Marshall D) David Ricardo

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Answer & Solution

Answer: Option D

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69

The theory of reciprocal demand is developed by . . . . . . . .

A) Yeron B) John Stuart Mill C) Ohlin D) None of these

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Answer & Solution

Answer: Option B

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70

Which of the following is not a method make FDI in India?

A) CCFI route B) Automatic approval by RBI C) FIPB route D) None of the above

Discuss

Answer & Solution

Answer: Option D

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