Foreign Trade Policy - Practice Test

[#136] Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R) . Read the statement and choose the correct answer. Assertion (A) The World Investment Report has prepared a transnationality index comprising average of three ratios based on foreign assets,
foreign sales, foreign employment. Reason (R) Given the increasing liberal investment and environment policy in which such companies operate, transnationality would enhance strategy for greater penetration.

(A) Both (A) and (R) are correct and (R) is the right explanation of (A)

(B) Both (A) and (R) are correct, but (R) is not the right explanation of (A)

(C) (A) is correct, but (R) is incorrect

(D) Both (A) and (R) are incorrect

Correct Answer

(A) Both (A) and (R) are correct and (R) is the right explanation of (A)

[#137] Which of the following pair(s) is/are not correctly matched?

(A) It assumes that factor modility within a country is complete ⟺ Endowment theory

(B) It assumes that new products are initially developed in capital rich countries ⟺ imitation gap theory

(C) Both A and B

(D) None of the above

Correct Answer

(B) It assumes that new products are initially developed in capital rich countries ⟺ imitation gap theory

[#138] Which of the following are objectives of World Bank?

(A) To assist in the development and reconstruction of the areas of the members, by facilitating the investment of capital for productive purposes

(B) To endorse private foreign investments by means of guarantees or participation in loans and other investments made by the private investors

(C) To promote the long range balanced growth of international trade and maintenance of equilibrium in the Balance of Payments of the member nations

(D) All of the above

Correct Answer

(D) All of the above

[#139] Statement I 'Trade Creation' and 'Trade Diversion' both have welfare implications. Statement II Regional partners should be competitive and not complementary, for the purpose of the most efficient use of economic resources within a Customs Union.

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

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

(C) Both statements are true

(D) Both statements are false

Correct Answer

(C) Both statements are true

[#140] The BoP is a fund statement that reflects changes in assets, liabilities and net worth during a . . . . . . . . period.

(A) given

(B) specified

(C) financial

(D) none of these

Correct Answer

(B) specified

Foreign Trade Policy - Study Mode

Correct Answer

[#137] Which of the following pair(s) is/are not correctly matched?

Correct Answer

[#138] Which of the following are objectives of World Bank?

Correct Answer

[#139] Statement I 'Trade Creation' and 'Trade Diversion' both have welfare implications. Statement II Regional partners should be competitive and not complementary, for the purpose of the most efficient use of economic resources within a Customs Union.

Correct Answer

[#140] The BoP is a fund statement that reflects changes in assets, liabilities and net worth during a . . . . . . . . period.

Correct Answer