Foreign Trade Policy - Practice Test

[#71] 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

Correct Answer

(C) It comprises of Zero Duty EPCG and Concessional 5% Duty EPCG

[#72] 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

Correct Answer

(A) a-1, b-2, c-3, d-4

[#73] 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

Correct Answer

(C) a-3, b-4, c-2, d-1

[#74] 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

Correct Answer

(D) All of the above

[#75] The comparative cost theory of international trade was developed by

(A) David Ricardo

(B) Haberler

(C) Adam Smith

(D) Alfred Marshall

Correct Answer

(A) David Ricardo

Foreign Trade Policy - Study Mode

[#71] Which of the following is not correct about EPCG scheme?

Correct Answer

[#72] 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

Correct Answer

[#73] 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

Correct Answer

[#74] According to RBI, which of the following are characteristic of FDI?

Correct Answer

[#75] The comparative cost theory of international trade was developed by

Correct Answer