1 Assertion (A): Private foreign capital lends to flow to the high profit areas rather than to the priority sectors.
Reasoning (R): One of the important limitations to utilize the foreign capital is the absorptive capacity of the recipient country.
Codes: (1) (A) and (R) both are correct and (R) is the correct explanation of (A).
(2) (A) and (R) both are correct but (R) is not the correct explanation of (A).
(3) (A) is correct whereas (R) is incorrect.
(4) (R) is correct whereas (A) is incorrect.
Answer: (2)
2 In case Mutual Funds invest in the securities whose price variations suggest the general price movement, it is called
(1) Hedge Fund
(2) Index Fund
(3) Growth Fund
(4) Balanced Fund
Answer: (2)
3. The forum which reviews the trade policies of all WTO member countries is which one of the fol- lowing?
(1) DSB
(2) TPRB
(3) TRIPS
(4) General Council
Answer: (2)
4. Changing Global Marketing Communication for each local market is called _______.
(1) International Marketing
(2) Communication Linkage
(3) Communication Adaption
(4) International Deal
Answer: (3)
5. Which among the following is associated with high-income economic and Human Development Index (HDI)?
(1) TRID
(2) TRIM
(3) GATT
(4) OECD
Answer: (4)
6. n commodity market, the foreign exchange rate is determined as per _______.
(1) Equilibrium Rate of Foreign Exchange
(2) Comparative Price of Foreign Currency
(3) Demand and Supply of Foreign Currency
(4) SDR
Answer: (3)
7. The Exchange of interest and/or principal pay- ment between two parties are called:
(1) Swap
(2) In the money
(3) Forward
(4) Put option
Answers: (1)
8. The __________ is especially well suited to offer hedging protection against transaction risk expo- sure.
(1) Forward Market
(2) Spot Market
(3) Transactions Market
(4) Inflation Rate Market
Answer: (1)
9. In order to promote domestic capital goods man- ufacturing industry, Specific Export Obligation under EPCG scheme, in case capital goods are procured from indigenous manufacturers, has been reduced from 90% to ______.
(1) 50%
(2) 60%
(3) 75%
(4) 80%
Answer: (3)
10. International banking dealing with non-residents only and not in the currency of the country where they are located is called __________.
(1) Non-resident Banking
(2) Offshore Banking
(3) Euro Currency Banking
(4) London Discount House
Answer: (2)
11. Exporter’s ‘Export risk insurance’ is covered by _______.
(1) Insurance Companies
(2) Export Credit Guarantee Corporation
(3) Reserve Bank of India
(4) Export Development Authorities
Answer: (2)
12. In which sector FDI was not prohibited under the government route as well as automatic route till February 10, 2015?
(1) Atomic energy
(2) Lottery business
(3) Housing and real estate
(4) Single brand retail trade
Answer: (4)
13. Member Countries of NAFTA are _____.
(1) Brazil, USA and Canada
(2) Canada, USA and Mexico
(3) USA, Argentina and Canada
(4) Panama, USA and Canada
Answer: (2)
14. Presently in India, rupee convertability in foreign exchange is __________.
(1) Restricted
(2) Partial
(3) Full
(4) None of the above
Answer: (2)
15. A country can improve its balance of payment through contribution both to current account and capital account by way of __________.
(1) Export promotion
(2) Foreign Direct Investment
(3) Import of Capital
(4) Export of Capital
Answer: (2)
16. “__________ is a statement showing a Country’s Commercial Transaction with the rest of the world . It shows inflow and outflow of foreign exchange. It is divided into current and capital accounts. The former records the transaction in goods and services.”
(1) Foreign Direct Investment
(2) Balance of Payment
(3) Movement of Foreign Exchange
(4) International Commitments
Answer: (2)
17. The activity of making profit through buying a Currency cheap in one market and selling it dear in the other market at a particular point of time is known as __________.
(1) Forward currency
(2) Currency arbitrage
(3) Speculation of currency
(4) Depreciated currency
Answer: (2)
18. As a part of the WTO Guidelines, the Agreement on Agriculture (AOA) does not include:
(1) Direct payments to farmers are permitted.
(2) Indirect assistance and support to farmers including R and D support by Government are not permitted.
(3) Domestic policies which directly affect produc-tion and trade have to be cut back.
(4) Least developed countries do not need to make any cuts.
Answer: (2)
19. Assertion (A): Export Processing Zones (EPZs) were set up as an enclave separated from the Domestic Tariff Area (DTA) and converted into SEZs.
Reason (R): The Export Oriented Units (EOUs) scheme is complimentary to the EPZ and is intro- duced to enable exporters enjoy liberal package of incentives.
Codes:
(1) (A) is correct but (R) is incorrect.
(2) (A) is incorrect but (R) is correct.
(3) Both (A) and (R) are correct but (R) is not the right explanation of (A).
(4) Both (A) and (R) are correct and (R) is the right explanation of (A).
Answer: (4)
20. Challenges before international business such as base erosion and profit shifting (BEPs), tax avoid- ance and shifting between a holding company and a subsidiary located in two different tax sover- eigns may be resolved by which one of the follow- ing?
(1) Mandate of Viena convention
(2) Montreal protocol
(3) Technology transfer transactions, cyber space
(4) Kyoto protocol
Answer: (3)
21.An efficient dispute settlement mechanism under WTO was brought in by which one of the follow- ing:
(1) The Uruguay Round Agreement
(2) Doha Round
(3) UNDP Human Development Report 2000
(4) The Uruguay and Geneva Round of Negotiation Answer: (1)
22.The undernoted items may be categorized into which one of the following?
Export quota, exchange control, profit remittance restrictions, subsidies, government procurement
(1) Tariffs
(2) Unrestricted tariffs
(3) Non-tariff barriers
(4) Hybrid of tariff and no-tariff barriers
Answer: (3)
23. To comply with the requirement of TRIPS agree- ment and to protect products of Indian origin, which one of the following was enacted?
(1) WTO Compliance Act 1999
(2) Geographical Indication of Goods (Registration and Protection) Act 1999
(3) The Patents Act
(4) The Copyright Act
Answer: (2)
24. Which one of the following transactions can be carried on without any restriction or regulation of the RBI under the FEMA?
(1) Transfer or issue of any foreign security by a per- son resident in India.
(2) Transfer or issue of any security by a person res- ident outside India.
(3) Drawal of foreign exchange for payments due on account of amortization of loans or for depreciation of direct investment.
(4) Export, import or holding of currency notes.
Answer: (3)
25. In international marketing, market selection process is generally done by considering which one of the following?
(1) Farm related factors, market related factors, cen- tral banking measures related factors
(2) Farm related factors, market related factors.
(3) Market related factors, non-farm related factors, government related factors.
(4) Farm related factors, capital market related fac- tors, and central banking measures related factors.
Answer: (2)
26. The exit of Great Britain from the European Union (EU) in June 2016 by a referendum has been announced as invalid by the London High Court on which one of the following reasons?
(1) Referendum has got no legal sanction
(2) Exit was not as per the British law.
(3) Exit was not as per the EU law.
(4) The Brexit cannot be legal under Article 50 with- out approval of the British Parliament.
Answer: (4)
27. The Most Favoured Nation status doesn’t neces- sarily refer to:
(1) Non-discriminatory treatment
(2) Same and equal economic treatment
(3) Same tariff rates applicable
(4) Uniform civil code
Answer: (4)
28. Which of the following organizations play an active role to prevent the contagion situation of crisis, such as the Greek Sovereign debt crisis?
(1) IMF
(2) World Bank
(3) WTO
4) UNCTAD
Answer: (1)
29. The whole channel concept for International Marketing is represented as:
(1) Seller Seller’s International Marketing Headquarters Channels within foreign nations Channels between nations Final Buyers
(2)Seller Seller’s International Marketing Headquarters Channels between nations Channels within foreign nations Final Buyers
(3)Seller Channels between foreign nationsSeller’s International Marketing Headquarters Channels within foreign nations Final Buyers
(4) Seller Channels between foreign nations Channels within foreign nations Seller’s International Marketing Headquarters Final Buyers
Answer: (2)
30. Mature Industries tend to go out of own country and into low-cost assembly locations.”
Which of the following theory/model explain this?
(A) Adam Smith’s theory of absolute advantage
(B) Porter’s diamond model
(C) Raymond Vermon’s international product life- cycle theory
(D) Heckscher-Ohlin theory of international trade
Answer: (C)
31. Which of the following is not a subsidiary body of General council of WTO?
(A) Council for trade in goods
(B) Council for trade-related aspects of intellectual property rights
(C) Council for trade in services
(D) Council for settlement of disputes
Answer: (D)
32. From the following statements relating to WTO agreements, choose the statements that are cor- rect:
Statement I: Diversity in technical regulations and industrial standards among countries leads to the introduction of TBT (Technical Barriers to trade) Agreements.
Statement II: The aim of WTO agreements on cus- toms valuation is to ensure a fair, uniform and neu- tral system for the valuation of goods for customs purposes.
Statement III: The agreement on Trade Related Investment Measures (TRIMs) applies only to meas- ures that affect trade in goods.
Codes:
(A) Statements I and II only are correct.
(B) Only statement I is correct.
(C) Only statements II and III are correct.
(D) All the statements are correct.
Answer: (D)
33. If the spot rate of US dollar is Rs. 60 and one month forward rate is Rs. 62, the forward rate premium (p) will be
(A) 40%
(B) (–)40%
C) 33%
(D) (–)33%
Answer: (A)
34. For which of the following sectors, the FDI cap/equity is 100%?
i. Mining including exploration and mining of diamonds.
ii. Defence production
iii. Drugs and pharmaceuticals
iv. Insurance
v. Banking
vi. Power (except atomic energy)
Codes:
(A) i, iii, iv and vi
(B) i, iii, iv and v
(C) i, ii and vi
(D) i, iii and vi
Answer: (D)
35. As per the Foreign Trade (Development and Regulation) Act, 1992, who advises the Central Government in the formulation of Export and Import Policy?
(A) Chief controller of Imports and Exports
(B) Director General of Foreign Trade
(C) Director General of Commercial Intelligence
(D) ChiefControllerofForeignTrade
Answer: (B)
36. According to Eclectic theory of Foreign Direct Investment (FDI), the motivation behind FDI is/are
(A) Capital and labour adequacy
(B) Raw material and labour adequacy
(C) Ownership, location and internalisation
(D) Labour, capital market and internalisation
Answer: (C)
37. The following statements are related to patents. Using code indicate the statements that are not correct:
Statement I: Patent is aimed to encourage econom- ic and technological development.
Statement II: Patent can be protected only for a lim- ited period.
Statement III: The law of patent is international in its operation.
Statement IV: When the patent right expire, the technology becomes public property.
Codes:
(A) Statements II, III and IV are not correct.
(B) Statements II and IV are not correct.
(C) Statement III is not correct.
(D) Statement IV is not correct.
Answer: (C)
38. Which of the following statements are not correct in relation to pre-shipment credit in foreign cur-rency?
Statement I: It is a foreign currency loan available,
both, to the importers and exporters.
Statement II: It is self liquidating in nature and can be liquidated by purchasing/discounting of bills.
Statement III: Refinance from RBI is available to banks against pre-shipment credit in foreign currency’s
Statement IV: The interest rare shall not exceed 1.75% above six months, LIBOR for the initial peri- od of one month.
Codes:
(A) Statements I, II and III are not correct.
(B) Statements I, III and IV are not correct.
(C) Statement II and IV are not correct
(D) Statement II and III are not correct.
Answer: (B)
39. Indicate the statement which is not correct:
i. Credit risk is loss on account of default of repayment of loan.
ii. Liquidity risk is the risk on account of the mis- matches of cash inflow and outflow in a firm.
iii. Basic risk is the risk in a firm owing to the differ- ences in the index to which financial assets and liabilities are tied up.
iv. Forward rate agreement is a contract where a borrower /lender locks the interest rate and pro- tects itself from the loss on account of change in the future interest rate.
Codes:
(A) i and ii
(B) ii and iii
(C) iii and iv
(D) None of the above
Answer: (D)
40.Which of the following facts are not correct in the context of India’s relations with the WTO?
i. India has been the founder member of the GATT.
ii. India has agreed to abide by the arrangement on the intellectual property rights.
iii. Under the trade-related investment measures, India has already notified its stand.
iv. India has agreed to allow entry to foreign serv- ice providers.
v. The Indian government has amended the Civil Procedure Code for the benefit of foreign serv- ice providers.
Codes:
(A) i and ii
(B) ii and iii
(C) iv only
(D) v only
Answer: (D)
41. Intra-firm transfer of technology is found when
(A) the price of technology development is very low.
(B) it is difficult to protect the technology through patents.
(C) the price of technology is very high.
D) the technology is developed in association with an allied firm
Answer: (B)
42. Assertion (A): The laws regarding patents and trademark are ineffective in many countries.
Reasoning (R): There are cases when a government does not abide by the rulings of the International Court of Justice.
(A) (A) and (R) both are correct, and (R) is the right explanation of (A).
B) (A) and (R) both are correct, but (R) is not the right explanation of (A).
(C) (A) is correct, but (R) is not correct.
(D) (R) is correct, but (A) is not correct.
Answer: (A)
43. Match the theories of Foreign Direct Investment with their contributors:
List – I (Theory) List – II (Contributor)
a. Industrial i. Kemp & McDougall
Organization Theory
b. Location Specific Theory ii. Hood and Young
c. Product Cycle Theory iii. Stephen Hymer
d. Two-Country Model iv. Raymond Vernon
Codes: abcd
(A) i ii iii iv
(B) iv iii i ii
(C) iii ii iv i
(D) i ii iv iii
Answer: (C)
44. The highest amount of FDI in India comes from
(A) Japan
(B) U.S.A.
(C) Indonesia
(D) Mauritius
Answer: (D)
45. Free trade’ means
(i) Opening different sectors for the FDI in flow
(ii) greater competition which, in turn, enhances effi- ciency
(iii) Development of new industries
(iv) Incentives for Imports and Exports
Codes:
(A) All (i), (ii), (iii) and (iv)
(B) Both (i) and (ii)
(C) Only (ii)
(D) Only (i)
Answer: (C)
46. Statement I: ‘Free trade’ leads to specialisation and
thereby to increased output.
Statement II: Import restrictions are both long term and short term measures of balances of payment adjustments.
Codes:
(A) Statement I is true, but II is false.
(B) Statement II is true, but I is false.
(C) Both the statements I and II are false.
(D) Both the statements I and II are true.
Answer: (A)
47. In terms of the increasing competitions, among the MNCs, rank the followings in the ascending order:
(i) Mobile Technology
(ii) Business Intelligence
(iii) Cloud Computing
(iv) Social Media
(A) (i), (ii), (iii) and (iv)
(B) (iv), (iii), (ii) and (i)
(C) (iv), (i), (ii) and (iii)
(D) (i), (ii), (iv) and (iii)
Answer: (B)
48. Statement I: ‘Trade creation’ and ‘Trade Diversion’ both, have welfare implications.
Statement II: Regional partners should be competi- tive, and not complementary, for the purpose of the most efficient use of economic resources within a Customs Union.
Codes:
(A) Statement I is true, but statement II is false.
(B) Statement II is true, but statement I is false.
(C) Both the statements I and II are true.
(D) Both the statements I and II are false.
Answer: (C)
49. Indicate the correct code for the following two statements of Assertion and Reason:
Assertion (A): GDP increases a currency’s value. Reason (R): Since there is likely to be greater
demand for country’s currency.
Codes:
(A) (A) and (R) both are correct, but (R) is not the appropriate explanation of (A).
(B) (A) and (R) both are correct and (R) is the right explanation of (A).
(C) (A) is correct, but (R) is not correct.
(D) Both (A) and (R) are not correct.
Answer: (D)
50. The salient features of India’s Foreign Trade Policy are:
i. Reducing the interest burden and extension of the interest subvention scheme.
ii. Rationalizing defence-related imports.
iii. Focus on labour-intensive sectors.
iv. Extension of zero-duty EPCG scheme.
Codes:
(A) All (i), (ii), (iii) and (iv)
(B) (i), (ii) and (iii) only
(C) (i), (iii) and (iv) only
(D) (ii), (iii) and (iv) only
Answer: (C)
51. Which of the following schemes is not a part of India’s Foreign Trade Policy 2009-14?
(A) DFIA(Duty-FreeImportAuthorization)
(B) TFITES (Tax-Free IT Export Scheme)
(C) VKGUY (Vishesh Krishi and Gram Udyog Yojana)
(D) FMS (Focus-Market Scheme)
Answer: (B)
52.. Indicate correct code for the following statements of Assertion (A) and Reasoning (R):
Assertion (A): The Global Managers must develop systems and policies that address floor price, ceiling price and optimum price.
Reasoning (R): The Global Managers must be in line with global opportunities and constraints.
Codes:
(A) (A) is correct, but (R) is not the right explanation of (A).
(B) (A) and (R) both are correct, but (R) is not the right explanation of (A).
(C) (A) and (R) both are correct, and (R) is the right explanation of (A).
(D) (A) and (R) both are incorrect.
Answer: (C)
0 Comments