Question 1

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

Accepted Answer

The balance of payments on current account may be positive or negative, regardless of the balance of trade, because it includes not just trade in goods (which affects the balance of trade) but also services, income, and current transfers.

Question 2

The Foreign Trade policy was first introduced in the year:

Accepted Answer

The Foreign Trade Policy (FTP) was first introduced in 1992, marking a significant shift towards liberalization and globalization in India's trade policies.

Question 3

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

Accepted Answer

As of the latest data, India's share in world trade is approximately 1.5 percent.

Question 4

The apex body of the Foreign Trade is:

Accepted Answer

The Ministry of Commerce is the apex body responsible for formulating and implementing foreign trade policies in India.

Question 5

The tenure of the Foreign Trade policy is

Accepted Answer

The tenure of the Foreign Trade Policy is 5 years. This policy is formulated by the Ministry of Commerce and Industry, Government of India, to develop export potential, improve export performance, encourage foreign trade, and create a favorable balance of payments position.

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

Accepted Answer

Special Economic Zones (SEZs) are designated areas in countries that possess different economic regulations and policies from the rest of the country, with the aim of attracting foreign investments, boosting exports, and achieving economic growth. These zones typically offer tax incentives, simpler customs and administrative procedures, and infrastructure benefits to businesses operating within them.

Question 7

Islamic nations follow

Accepted Answer

Islamic nations often follow a legal system that is influenced by religious law, known as Sharia law, which is derived from the Quran and the Hadith.

Question 8

What does CCIE stand for?

Accepted Answer

CCIE stands for Chief Controller of Imports and Exports.

Question 9

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

Accepted Answer

The answer of The total value of the products and...

Question 10

To what extent is FDI permitted in the FTWZ?

Accepted Answer

The answer of To what extent is FDI permitted in...

Question 11

The WTO Agreement related to investment measures is:

Accepted Answer

The answer of The WTO Agreement related to investment measures...

Question 12

The major players in the foreign exchange market are

Accepted Answer

The answer of The major players in the foreign exchange...

Question 13

Derivatives can be used by an exporter for managing

Accepted Answer

The answer of Derivatives can be used by an exporter...

Question 14

The euro is the name for

Accepted Answer

The answer of The euro is the name for
...

Question 15

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

Accepted Answer

The answer of Which of the following are international financial...

Question 16

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

Accepted Answer

Funds positioning techniques involve moving funds between MNE operations to optimize financial performance and tax efficiency.

Question 17

Most FDI and trade are made by:

Accepted Answer

The answer of Most FDI and trade are made by:
...

Question 18

The EU is the major provider of FDI for:

Accepted Answer

The answer of The EU is the major provider of...

Quiz 5: Foreign Trade and Financial Considerations