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India Foreign Trade And Policy online MCQ with answer practice set

Study India Foreign Trade And Policy online MCQ with answer practice set for your academic course and prepare for your exam and online assignments. You can give online FREE Quiz and test your knowledge on OMCQ portal.

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Exam Question

Which of the following currencies witnessed a big fall in its exchange rate in 1992?

  • 1. Pound Sterling
  • 2. Japanese Yen
  • 3. Deutsche Mark
  • 4. Swiss Franc

View Answer

Answer 1. Pound Sterling

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Exam Question

The objective of exchange control is:

  • 1. To ensure the availability of sufficient foreign exchange
  • 2. To establish the external value of the domestic currency
  • 3. To prevent flight of capital
  • 4. All of the above

View Answer

Answer 4. All of the above

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Exam Question

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

  • 1. Products imported from all trading partners should be given the same treatment as national products;
  • 2. Once in the domestic market, imported goods and services from all trading partners cannot be treated differently from domestic products;
  • 3. All trading partners should be extended “most favoured” nation;
  • 4. 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

View Answer

Answer 2. Once in the domestic market, imported goods and services from all trading partners cannot be treated differently from domestic products;

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Exam Question

The Doha Development Agenda:

  • 1. Sets development of developing countries as the basic goal of the work programme contained in the Doha Ministerial Declaration;
  • 2. Is a broad work programme addressed to developing countries;
  • 3. launched a new round of negotiations on market access, trade and environment, TRIPS, and the Singapore issues; or,
  • 4. Set a three years deadline for the opening of agriculture and industrial goods market, to the benefit of developing countries

View Answer

Answer 1. Sets development of developing countries as the basic goal of the work programme contained in the Doha Ministerial Declaration;

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Exam Question

Which of the following is not included in the current account section of the BOP

  • 1. The exports of goods and services
  • 2. Import of goods and services
  • 3. Capital inflows
  • 4. Government grants

View Answer

Answer 4. Government grants

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Exam Question

In which of the following international contact terms the seller represents maximum obligations?

  • 1. Free on Board (FOB)
  • 2. Cost and Freight (CFR)
  • 3. Cost Insurance and Freight (CIF)
  • 4. Delivered Duty Paid (DPP)

View Answer

Answer 4. Delivered Duty Paid (DPP)

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Exam Question

Government can discourage import of any commodity by the use of:

  • 1. tariffs
  • 2. quotas
  • 3. boycotts
  • 4. all of the above

View Answer

Answer 4. all of the above

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Exam Question

The Anti-dumping Agreement:

  • 1. Allows States to react against dumping, that causes injury to the competing domestic industry;
  • 2. Can be invoked when a company exports a product at a price lower than the price it normally charges on its own home market;
  • 3. Requires States to act against dumping; or,
  • 4. Can be invoked when the unfair competition practiced by a company causes injury to the domestic market

View Answer

Answer 1. Allows States to react against dumping, that causes injury to the competing domestic industry;

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Exam Question

A method used by government to encourage import is

  • 1. relaxation in import of capital goods
  • 2. import substitution
  • 3. psychological barriers
  • 4. legal barriers

View Answer

Answer 2. import substitution

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Exam Question

“Millennium Development Goals” are introduced by…?

  • 1. United Nations Organization
  • 2. World Bank
  • 3. ASEAN
  • 4. IMF

View Answer

Answer 1. United Nations Organization

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Exam Question

Firm are motivated to export during

  • 1. relative profitability
  • 2. reducing business risk
  • 3. insufficiency of domestic demand
  • 4. all of the above

View Answer

Answer 4. all of the above

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Exam Question

Ministerial Conferences are:

  • 1. Periodic rounds of negotiations;
  • 2. Meetings of ministers with the sole objective of launching new multilateral trade negotiations;
  • 3. Enlarged meetings of the General Council, which take place every two years;
  • 4. Periodic meetings of ministers in charge of WTO matters

View Answer

Answer 4. Periodic meetings of ministers in charge of WTO matters

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Exam Question

Which of the following is not the role of IMF?

  • 1. Country Surveillance
  • 2. Financial Assistance to members to correct balance of payments problems
  • 3. Technical assistance in its areas of expertise
  • 4. Dispute Settlement

View Answer

Answer 3. Technical assistance in its areas of expertise

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Exam Question

Balance of payments is a double entry accounting based on

  • 1. rules of debit and credit
  • 2. exports and imports
  • 3. receipts and payments
  • 4. all of above

View Answer

Answer 4. all of above

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Exam Question

Exports in BOP is considered to be

  • 1. debit
  • 2. credit
  • 3. economic activity
  • 4. none of the above

View Answer

Answer 4. none of the above

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Exam Question

Export-Import Bank of India was established in:

  • 1. 1947
  • 2. 1971
  • 3. 1982
  • 4. 1997

View Answer

Answer 3. 1982

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Exam Question

The import of quota used in connection with administration of exchange control is

  • 1. mixing quota
  • 2. import-licensing
  • 3. tariff quota
  • 4. unilateral quota

View Answer

Answer 2. import-licensing

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Exam Question

What are countervailing measures?

  • 1. Measures which a State may initiate against another State when that other State has legally subsidized any of its domestic industries
  • 2. Measures which a national government may initiate against another State when that other State has not subsidized any of its domestic industries
  • 3. Measures which a State may initiate against another State when that other State has illegally subsidized any of its domestic industries
  • 4. Measures which a national government may initiate against another State when that other State has not illegally subsidized any its domestic industries

View Answer

Answer 3. Measures which a State may initiate against another State when that other State has illegally subsidized any of its domestic industries

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Exam Question

Who is currently the Managing Director of IMF?

  • 1. Mr. Pascal Lamy
  • 2. Mr. Dominique Strauss-Kahn
  • 3. Mr. Robert B. Zoellick
  • 4. H.E. Dr. Ali Abdussalam Treki

View Answer

Answer 2. Mr. Dominique Strauss-Kahn

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Exam Question

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

  • 1. 2003
  • 2. 2004
  • 3. 2005
  • 4. 2006

View Answer

Answer 2. 2004

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