Deck 5: Foreign Trade and Financial Considerations

Question 1

. A country has a negative balance of trade. It means the balance of payments on current account

A)Should also be negative
B)Should be positive
C)May be positive or negative
D)Should be same as balance of trade

Answer 1

May be positive or negative

Question 2

The Foreign Trade policy was first introduced in the year:

A)1981.
B)1947.
C)1992.
D)2000.

Answer 2

1992.

Question 3

The present share of India's trade in the world trade is

A)less than 1 per cent.
B)1.2 per cent.
C)1.5 per cent.
D)1.8 per cent.

Answer 3

1.5 per cent.

Question 4

The apex body of the Foreign Trade is:

A)The Central Government.
B)The State Government.
C)The Ministry of Commerce.
D)All the above.

Question 5

The tenure of the Foreign Trade policy is

A)3 years.
B)5 years.
C)1 year.
D)7 years.

Question 6

The geographically distributed area or zone where the economic laws are more liberal as compared to other parts of the country is called

A)EOU
B)SEZ.
C)AEZ.
D)FTZ.

Question 7

Islamic nations follow

A)Common law
B)Civil law.
C)Criminal Law.
D)Religious law.

Question 8

What does CCIE stand for?

A)Chief Controller of Imports and Exports.
B)Central Cottage Industries Exports.
C)Control on Cotton Imports and Exports.
D)Commissioner of Central Imports and Exports.

Question 9

The total value of the products and services marketed by a nation is called:

A)Gross Domestic Product.
B)Gross National Product.
C)National Income
D)Per capita income.

Question 10

To what extent is FDI permitted in the FTWZ?

A)50%
B)60%
C)75%
D)100%

Question 11

The WTO Agreement related to investment measures is:

A)TRIPS.
B)TRIMS.
C)GATS.
D)TCA.

Question 12

The major players in the foreign exchange market are

A)commercial banks.
B)corporate.
C)exchange brokers.
D)central bank of the country and the Central Government

Question 13

Derivatives can be used by an exporter for managing

A)currency risk.
B)cargo risk.
C)credit risk.
D)business risk.

Question 14

The euro is the name for

A)a currency deposited outside its country of origin.
B)a bond sold internationally outside of the country in whose currency
C)the bond is denominated
D)a common European currency.

Question 15

Which of the following are international financial considerations faced by both small and large MNEs?

A)Currency systems
B)Tax systems
C)Interest rates
D)Exchange rate

Question 16

Strategies in which funds are moved from one MNE operation to another are called

A)funds positioning techniques
B)arm's length techniques.
C)fronting techniques.
D)subsidiary flows.

Question 17

Most FDI and trade are made by:

A)China, Japan and the US.
B)The US, the EU, and Japan
C)North America
D)ASEAN countries

Question 18

The EU is the major provider of FDI for:

A)Eastern Europe.
B)South America.
C)developing Asian countries
D)all of these regions.