Foreign Trade Policy - Practice Test

[#121] The highest amount of FDI in India comes from

(A) Japan

(B) USA

(C) Indonesia

(D) Mauritius

Correct Answer

(D) Mauritius

[#122] In the context of economic groupings, which among the following is not applicable to common market?

(A) Harmonisation of economic policies

(B) Common external tariff

(C) Free movement of labour and capital

(D) Removal of tariff barriers on intra trade

Correct Answer

(A) Harmonisation of economic policies

[#123] A Foreign Trade Zone (FTZ) is

(A) a regional area within which trade with foreign nations is allowed

(B) a free trade agreement among several nations

(C) designed to limit exports of manufactured goods by placing export taxes on goods made within the zone

(D) designed to promote exports by deferring import duties on intermediate inputs and waving such duties if the final product is re-exported rather than sold domestically

Correct Answer

(D) designed to promote exports by deferring import duties on intermediate inputs and waving such duties if the final product is re-exported rather than sold domestically

[#124] 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 Balance of Payment adjustments.

(A) Statement I is true, but Statement II is false

(B) Statement II is true, but Statement I is false

(C) Both statements are false

(D) Both statements are true

Correct Answer

(A) Statement I is true, but Statement II is false

[#125] Which of the following are called commercial documents as per ADS? 1. Certificate of insurance 2. Insurance declaration 3. Certificate of inspection of quality control 4. Receipt for payment of port charges 5. Preform invoice 6. Shipment advice 7. Export application dock challan Select the correct answer

(A) 1, 2, 3, 5, 6, 7

(B) 1, 2, 3, 5, 6

(C) 1, 2, 3, 4, 5

(D) 3, 4, 5

Correct Answer

(B) 1, 2, 3, 5, 6

Foreign Trade Policy - Study Mode

[#121] The highest amount of FDI in India comes from

Correct Answer

[#122] In the context of economic groupings, which among the following is not applicable to common market?

Correct Answer

[#123] A Foreign Trade Zone (FTZ) is

Correct Answer

[#124] 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 Balance of Payment adjustments.

Correct Answer

Correct Answer