Foreign Trade Policy - Practice Test

[#216] Match the following. List-I (Concepts) List-II (Meaning) a. Globalisation 1. It conforms to the principle of double entry book keeping b. Balance of Payment 2. Intergration with the world economy c. Merchandise 3. It occurs on account of business cycles d. Cyclical Disequilibrium 4. It includes sale and purchase of goods to from foreign countries

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

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

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

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

Correct Answer

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

[#217] Which of the following statement(s) is/are correct?

(A) When a foreign firm establishes with the superior technological skills which can produce quality items at cheaper rates, it adversely affects the domestic producers

(B) Reverse resource transfer effect takes place whenever resources like managerial skills are transferred back to the home country

(C) The benefit of home country is the cost of host country and vice-versa

(D) All of the above

Correct Answer

(D) All of the above

[#218] The theory of comparative advantage assumes single factor of production, i.e.

(A) land

(B) labour

(C) capital

(D) all of these

Correct Answer

(B) labour

[#219] The Government of India helps the exporters in selecting the product and the market under

(A) FPS

(B) MLFPS

(C) Both A and B

(D) Neither A nor B

Correct Answer

(C) Both A and B

[#220] Match the following. List-I List-II a. Merchandise exports 1. Purchase of foreign goods b. Merchandise imports 2. Sales of goods abroad c. Investment income 3. Largely caused by excess of imports over exports in merchandise d. Balance of Payment deficits 4. Dividends, interest etc received from abroad

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

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

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

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

Correct Answer

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

Foreign Trade Policy - Study Mode

Correct Answer

[#217] Which of the following statement(s) is/are correct?

Correct Answer

[#218] The theory of comparative advantage assumes single factor of production, i.e.

Correct Answer

[#219] The Government of India helps the exporters in selecting the product and the market under

Correct Answer

Correct Answer