scdl india's foreign trade new engine solved
TRANSCRIPT
With r"9ard to proouctMty of tradibonal """"ns, Ind"'s proouctMty performance;s satisfactory.
@ TRUE
a FALSE
The lirst 6 r""nds of MTNs concentrated on _
@ redudn~tari"s
o redudn~ Quotas
o redudn~ CtJstom duty
o if1Cfeasin~el""".alue
ne date 00 whid1 lI1e eXd1an~e of o.JrTendes is to take place is known as lI1e c::!!! of lI1e transaelioo.
The Overseas Investment Ins"r~ncedoes cover the risks on ~CCOIInt 01 contingendes hke w~r too.
a TRUE
@ FALSE
::::J did not feature in tl1e ne~.w. list of ~.ms unde, the Exim Policy '997- 2002
The Income srotement consolidates the CIIrrent ~CCOIIntsoIl sectors 01 the economy namely,
o p<ooocti\le sector
iii prtli.te sector
iii GO'I/emment sector
iii forei\lf1 sector
The r~te structure 01 ~ blink lor Y~riooscurrencies m~y look ~ke ~s given, in the verticlll order _
@ Currency, Pound Ste~ing, US$
a US$, Pound Ste~ing, Currency Rate
a Pound Ste~ing, US$, Currency Rate
a Currency, US$, Pound Ste~ing
Apan Irom the funded usistance, the Ellim Bonk also provides _
iii Itnes or credit
iii ooyers' credit
0 sellers' credit
iii bridge loans
With the aOm of makin9 Ind'" a 9ems & jewellery hub of the woMd, these """,sures are announced _
iii .1I0"';n9 Import of p<edous metal scr.p for mel~n9, ,efinlng & re-export
o pe"nissi"" to rHmport to see tI1e eneel of costs on domes~c p<o<lucltoo
iii permissi"" to export polished p<edous and semi predous st""es for treatment .!>ro.d
iii pe'missi"" for the export 01 jewellery on a consignment basis
The needs of the eltflOners & the imponers ~re basicllily the sa"",.
o TRUE
@ FALSE
BlS stands 10<
The"" are the steps after the exponer submrts the duplicate of the GRlSDf form to the B<tnk with the sh;pp;ng dOCtlments _
iii lI1e Bank will report lI1is receipt al""9 will1 its periodical return to 1l1e R~
iii ~ will continue to hold 1l1e GRlSDF !Ofm ~111l1e lull export pfOceeds cO'I/ered by 1l1e !o<ms are reallud
o ~ will c""tinue 10 hold lI1e GRISDf !o,m even after lI1e lull export pfOceeds covered by 1l1e !o<ms are reallud
iii ~ will certify "" lI1e bacl; oj tI1e GRISDf !Ofm about lI1e b<1I realiLiti"" and !OfWard 10 1l1e R~
finished Handocmn products of sandalwood dOd feature in the prohibited ~st of rtems under the Exim Policy 1997_21>02.
a TRUE
@ FALSE
The ,",pon value On US$lrom the period 2OO2~5
@ increased more tI1an d<>Uble
o Increased less lt1an d<>Uble
o showed a sli\ll1tlall
o recorded a sli~ht increase
The Union Commerce" Industry Minister unveiled the Export Import P<>Iicy for the year 2001_2002 on
@ Ap<il 1st 2001
0 Mard11st2001
0 Mard131st2001
0 May 1st 2001
Cross rate F<>rWard Rate
~====I I~~==Exct1ange rate Spot Rate
b...".nCUlllll:fX"amencr yQIIQ·..don'"
IIalf or..U. un ewrencr xIft(I Z1ft(I..UI ,un YIft(I
v...or_ amencr lor. Idor.-......
Cross rate Forward Rate.. _
- -"- ...@ @
Exrnange rate Spot Rate
@ --
TIle Elim Dank ",""des funds to Ind;an Promoters of joint yentures OIIerseas for "Quily parlidpa~OI1 Oller a period 01
, , years
These ue the exch~nge r~te nomendatnres"sed for the seIIin9 n~tnre of the fr~nSllcbon.of the nndel1<lkin9 Bank _
iii n Selling Rate [ITS)
iii Bjll Selling R.te (BS)
iii TC Selling Rate (TeS)
o CB Selling R.te (CBS)
A key indicllior of the extent of lechnololliclll matulity and indusfrial developmenl of a coonlry is seen in its level of
@ Project exports
o Innux oIfOfei\jf1 tourists
o Software development and exports
o fashion shows of international models in India
The fIJI into Ind" whoch .,;eked up durin9 2005-00 was becIIuse of
@ India pe~0<""n9 relatillety well in 1I1e seMces seclo<
o India showin9 a good track recOld of loan repayments of international loans
o sustained groWl!1 in aelMly and p.ositille investment climate
o mass ....e inooslrialization Pfocess in 1I1e domestic economy
ECGC 01 In limrted wns estllblished by the Government 01 Ind" 10 enh.nce expon promotion by _
o help<ng the exporters ~nd new aIIenues of inllestment,\ p<oooclive resoorce energy
o e>:lending e.port credit espedally to new b<Jdding e.porters on the dfru~
o covering the risk ofe.porting on credit
@ ~nandng those projects whIm are ecooo"";cally ";able and help increase the overall e.port gfoWlh potenhl
Cana~""bon is now conlined to
@ certain pelr,"eum pWclucls, fertilizers, eeli!>e ,"Is, cereals
o certain pelr,"eum proclucls, fertilizers, wheat
o fertilizers, eeli!>e oils, cereals, com
o certain pelr,"eum proclucls, pes~ddes, ed;!>e ,"Is, cereals, cott""
DeveIoj>ed coontries are not oonemecl by utililing "l>OIIr and cnpiLtl from less develot>ecl coontries
a TRUE
@ F~SE
A\llicunure;s amon9st the sectors wherein fIJI is prohibited under Government as _ as Automlloc Roote, except _
iii FIOIirultu,e
o Fertil"", development
iii Developmentofseeds
iii HO<1irultu,e
These are the dero~s under the Currency structure 01 a blink _
0 CNB, TTB, TIC
iii TTB, BB, TCB
iii TCS, BS,CNS
iii CNB, TIS
no pMndpal deposits of ;ron ore in the country are concentrated in..._- .... - ...
Sooth Africll show1!d ~ very n"ll101I_ Ompon bill in the ye;lrs 1991_90(.
@ TRUE
a F~SE
A Bo>Ird of Dire<:tors on the ECGC comprises of rejlresentatives of the
iii Govemment
iii ,.o Banking& Insurance community
iii F<>reign lIlinislr/ & the lIlinislr/ of Commerce
By 21>06, Ind" recorded ~ CAGR of _
@ 0.23
00.33
0043
o 0.53
These are the y""rs wh;ch have recorded the hillhest l declines in mpon values over the respective pr<Moos ye<trs in terms 01 US$in millions_
I!l 1991-92
I!l 1984-85
I!l 1981-82
0 1983-84
In 21lO5, in expon 9'owth the"" we,e the last l perlormin9 coontries _
o China, Ko<ea, Ind;a
@ Malaysia, Sjngapofn, Ko<ea
o Cl1ina, Japan, Ko<ea
o Ko<ea, Ind;a, China
The reserves & Monetary Gold under the IloII includes changes in totalloref\ln exchange reserves, whoch consists 01 _
iii R~ hoidinQs of 901d andfofei9n exmanQe
iii SDRs held by GOIot of India on ~s own acc<>Unt)
o open mart<:et securities 0I1l1e GO'I/emment
o public sectof share holdin9 wiI!11l1e GO'I/emment
Amongst the impons 01 C1Ip;t;tlgoods, these goods mnked in the lirst l slots
@ electron;c 90ods, tr.nsport equipment
o electric 900ds, transport equipment
o electron;c 90ods, software systems
o electric 900ds, met.1 m.nuf.ctures
The problem of faceless presence hu~ggravated the problem of selling under Ind",n brand names.
@ TRUE
o FALSE
NRlsJOCB.JU. can ""'thue on non.r_lrtl1lk>n I>lIsls unNs 01
@ r.lon~y r.l"""ot r.l\lllJal Funds and Natjonal PlillllSaWlg.s COttrlleales
o Ol>~n mart~t u<:lllilin. S8l mulUal lyndS
o po.t olIIte $awIg1l tenilk;aln. Go<>'Imment aeCUlilies
o Lon~ term torl'O'"ate t>on<ls & clobenlures
Equilibrium in the BOP exists only when _
@ lI1e total debit is eClUal to lI1e total credit will10vt compensatory Of a=mmoda~n~ ""pitallranslers
o lI1e total 01 debils is eClUal to lI1e total of credits in absoMe & real terms
o lI1ere e>ists neill1er surplus nOf dendl on lI1e current accoun~ not c""siderin~ tI1e acti""s "" tI1e ""p'tal account
o lI1ere are no ct1an~es made In lI1e inlema~""al reserlles in Ofderto restOfe eQualily between receipts & payments on lI1e BOP
@ TRUE
o F~SE
In India's BOP statistics, e>:ports are recOfded sincel::::;;~au!hOlilies for shipment
~':'~"'~;:::Jwhen they are "eared by rustomer
Goods being sent ~broad lor repair ~nd re-<mponed Ian OIItside the JlllMeW 01 the Expon R"'l"loIbons loIld down by the RBI.
a TRUE
@ FALSE
TlIe annual plans
iii witnessed no stimulaun~ eneel of devaluauon
o tr1. imports were hi~h.rtr1an exports bytr1. value oj Rs 2G67 crores
iii witnessed a betterlood crop
iii tr1. hi\ll1estlrade defidtwas not more tr1an Rs 910 cror.s
I:~~~~~~~~;~i coolrib<Jte to the hi~h cost of ",ooorn"" if1 India.
GR fomlS PP forms
~====I I~====Softe. forms
I ISOFforms
.-CIl'Ma__1lIn
IIl'lllc.1IlOCII
or"" Ie......1111 CIICIIlOll••rIlOllI
GR IOfms W10fms
-
ModiOOd lERM Sculmjn~ted into the United Exchange Rate System ClIme into effoct Irom
0 April1 s~ 1993
@ M"'cI11s~ 1993
0 May 2nd, 1993
0 ApriI5lh,1993
The International Coori of Ar1litration is the longest institution of the ICC.
@ TRUE
a FALSE
The lowest trllde deOCit during the foorth Plan Period wns Rs
0 OOCwfes
0 B5Cn>res
@ SSCwfes
0 BSCwres
fore;gn Tr~de en~l>Ies
iii Co-operation to ",event tension amongst countries
iii Inte~inkin~of national interests tI1rou~h free trade
iii iINestments in fOfeill'1 countries
o Sopl1isticated nelwOfkin~
@o
oo
o~!~Io{L,." ~!
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19B~ 00 onward ""era~e annual imports are C::
Under the Exim Policy 2002 _2007 , in order to boost agro exports, corporate sector will be encouraged to
o sponsor AQri ExportZone
o QOie financial counselinQ to AQricultural Export Zooes
o help and Quide the AQri Export Houses i!!£,~ times olneed
@ help the AQri Export Houses to develop contacts and QOie Iree counselinQ
General~, options are not constructed on the underljinQ market, nut ramer tonv8l"me riQht to bllf' or sell the
These are the suggestions gillen to the Government
iii Use ¥ery simple and clear lanQuaQe in all communicatio~s
iii Minimize the discretionary powers Qr.en to ollicjals
iii A¥oid corruption in the s¥stem
o Centralize absolute bureaucraU< powelS in the hands of the ollieial"
For the implementation offoreign trade rules and regulations, circulars are issued to all such Banks that are usually referred as
o ADPIR Circulars
o ARDIP Circulars
@ APDIR Circulars
o ADRIP Circulars
The measures under the Third Yearly Import Export Policy were
iii increased liberalization olthe import 01 capital Qoods
iii rationalization olthe REP scheme
iii modification olthe list alOGl items
o decanalisation 011 0 essential1lems
Similar~, incase of the transfer of shares of listed companies from perMri re",dln~ outside India to a person resident in
India, valuation shall be as per the ......~ gUidelines
'" ..
::]WOOd in ani form but excluding the value added praducts of this wood was in the prohibited list of
Exim Policy 1997- 2002
countries account (0' tho hiQhest exports
On the BOP, Transportation credtts include _
iiiiiioiii
estimated frei~ht on exports invoiced on CIFiCF basis
Remittances receOied by Indian SteamshipiAinine companies from their om,esia~ents abroad
Remittances receOied by Indian brancheVa~errts offorei~n steamshipiainine companies~ -
Remittances made by Indian sleamstrlpiairline Companies to their ollicesi a~ents abroad
Free Trade refers to a sttuation
o where there is unrestricted exchanQe of Qoods and semoe.between countries
iii Where the Government follows a policy of non-interference
iii Where there is absence of tarin's quota~. exchanQe restriction taxes and subsidies on production
iii Where there are policies ,eslri'!in~ smooth exchan~e of Qoods
Export incent",es are a ";de~ adopted strate(l)l of
K is the policy oUhe government to keep the negative Ksts
o as small as possible under QOien circumstances and sUbiectto scrutiny as the exports become favorable
o as small as possible under any circumstances.anfsubject to scrutiny as the exports become fa'o'Vrable
o as small as possible under any circumstanoes and subject to scrutiny as the tradinQ balance become favorable
@ as small as possible under any circumstances and sUbjectto scrutiny as the imports of manufactures comes down
The importance offoreign trade is
Iil Broadens outlook
o Accelerates QroWlh
Iil Expands markets
Iil EncouraQes on~ that sector wtlicM Mas " comparat",e act.'antaQe
Counties like Kazakhstan & Ukraine, amongst others were in the special focus of India's trade wtth the CIS Countries in 2IlOO_01
@ TRUE
a FALSE
The Committee appointed for mOIling towards fuller convertibility on the capttal account, detililed a rille_year time frame for achieving
~s objeclille in 3 phases, namely_
~ phase in 2006-07
~ phase in 2007-08 to 2008-09
o phase in 2007-08 to 2008-09
~ phase in 2009-1 0 to 201 G-IOl1
\.Is$" in millions o,er its
..."pre"ous year
Reserve Bank may consider "JIplicalions in Form RFC from exporters h1llling good track record for opening foreign currencyaccounts wtth banks subject to certain terms and condttions.
@ TRUE
o FALSE
:::1 is described as " s¥stem of rules to exercis~ open, f:lir & undistorted competition
I
In 2005, in export growth these were the last 3 performing countries _
0 China, Korea, India
@ Mala)'Sia, SinQapore, Korea
0 China, Japan, Korea
0 Korea, India, China
These are India's prime importers of marine products (in their order of r""king)_
o European Union, US, Japan
@ US, Japan, European Union
o US, UK, Mala¥sia
o Japan, China, SinQapore
To gille a boost of electronic hardware industry supplies these ~ems shall qualiryfor the fulfinment of the export ob~gation.
@ of all 217 ITA-1 items from EHTP units to DTA
o ofa1l2161TA-1 items from ETP units to DTA
o of all 1077 ITA-1 items from DTA units to Ef1!-o ofa1l1001TA-1 itemsfromDTAunitstoETP
..,. ]miliion
....•
No apprlMll is required to change the consignee.
o TRUE
@ FALSE
Presence of Sectoral Cap!Statutory ceiling means that
@ non Qovernrnent indulQence in foreiQn investrnent below" parti,ular lirnit
o foreiQn investrnentfrorn all sources cannot exceed a specified level
o statutory % offoreiQn investrnent in dornel\t'0nfrastructure
o ceilinQ on the lirnit offoreiQn in""strnonl in public enterprises
The IMF was founded in 1 $!::J
""
,
•
The Income statement consolidates the current accounts of 3 sectors of the economy namety',
Iil product",e sector
Iil pr","te sector
o GO¥ernment sector
Iil foreiQn sector
The import growth is
@ is just the same as the export QroWlh
o shows no siQn alposit",e development
o hea";'" less than the export QroWlh oI15:~%
o sliQhW less than export QroWlh 01 15.3%
The concerned parties for the transfer from resident to non_resident shaM adhere to pricing gUidelines, documentation and reportingrequirements for such transfers
a under the prescribed Quideline, of the Ministry of Finan,"
a under the prescribed Quideline, of the Ministry of Commerce
@ as specified and monitored b','the GO\Iern""",tfrom time to time
a as may be specified by ResetYe Bank. from time to time
The Government set up this cell (called by this name) in order to prevent dumping of cheap imports at unreasonable prices _
@ Directorate General of Anb-Dumpino & Allied Duties
o Anti dumpino cell
o Direct Move aoainst dumpino
o Direct Cell for anti-dumpino
By the term 'resident', Kindleberger means all those actually residing in the country, whether as c~ilens or not.
@ TRUE
a FALSE
The duplicate copy of GRISOFW form should be forwarded to Reserve Bank wtth these particulars:
~ Amountforwhich shipment was insured
~ Name and address of the insurance company
~ Place where the claim is payable
o Insurance details of the product shipped
A number of awards h""" been instttuted to encourage exports and to recognize exce"ence in exports.
@ TRUE
a FALSE
Until 1994- 95, L:~'~'!::J exports consisted of ,alue- adde~ leaTher pmdu,ts suc~ as SMpper's shoes, Qarments and
accessones
,
Even though the export credtt is increasing in absolute terms, the share of export financ9 In total net bank credtt is decreasing yearafter year.
@ TRUE
o FALSE
Malhemalicallythe BOP must always balance.
@ TRUE
a FALSE
There have been significant imprOllements in the structure of India's BOP and the strength of the eldern'" sector since theeconomic crisis of June, 1991.
@ TRUE
o FALSE
The need for promoting mertha'" housas was IlllgelYfeR because lJf •
~ Ille fOfe;~n dependen" ruched serious propoltJons In 1M SecOfl~ F.... Year Pisn
o need (0, e:qIon promotion (0, non-tiadttjonal items
~ need was fett (0, p'ooidlng channels for export ofllle pro~uclSofllle small sector
~ need was fett to successl\Jlly gel h'llh QIlalided & e.:perienced personnel ~m abroad
EEFC
1081 IFel
In case of any item falling under import license, the Banks SMuT~ noT ~pe~ any letter 01 credit or etrect any remittance
unless the Oflltlit_. is submitted and endorsed
, ... , ..
Remittance can be effected even after a lapse of 6 months provided _
iii the remittinQ bank is canoinced 'nith the reasons of delay
iii no interest is payable forthe delayed period
iii the conditionalities stand the same for 'lttypes vfQood, be IT books or bikes
o a Quarantee is obliQatory in case of alilemittance,
India does not really have an easy access to market intelligence and information.
@ TRUE
a FALSE
The chanQe in the L:::=& payments on the BOP
~:;!Il'~!::::::J are accommo6affhQ transactions to restore equality bel+ieen receipts
These are the main components of non_factor services _
o Insurance
iii travel
iii transportation
iii investment semee counseljnQ
Period of packing credtt is related to the operating cycle but tt is usually restricted to 160 days.
@ TRUE
a FALSE
Imports from these counties are wtthin the top 5 posttions for India for the 1991_92
iii Germani
iii Saudi Arabia
0 BelQium
iii C~
In order to reduce chronic disequilibrium, Under Bretton Woods, the last resort as suggested by the government would be _
o revaluation
o devaluation
o internationallendinQ
@ subsidilinQ interest rates in IoreiQn ,.prtal