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DRIVE-Summer
2015
PROGRAM-MBADS
(SEM 4/SEM 6) MBAFLEX/ MBAN2 (SEM 4) PGDIB (SEM 2)
SUBJECT
CODE & NAME-IB0015- Foreign Trade of India
BK
ID-B1908
CREDIT
& MARKS--4 CREDITS, 60 MARKS
Q1.
Discuss the Heckscher-Ohlin theory of international trade. 10
Answer: The Modern Theory of
international trade has been advocated by Bertil Ohlin. Ohlin has drawn his
ideas from Heckscher's General Equilibrium Analysis. Hence it is also known as
Heckscher Ohlin (HO) Model / Theorem / Theory. According to Bertil Ohlin, trade
arises due to the differences in the relative prices of different goods in
different countries. The difference in commodity price is due to the difference
in factor prices (i.e. costs). Factor prices differ because
Q2.
What is the role of services exports in recent years in India’s composition of
trade? Discuss. (India and services trade) 10
Answer:
Composition of Exports: The composition of
exports shows a perceptible shift in this decade from light manufactures
to heavy manufactures and petroleum crude and products. The share of
textiles and ready-made garments (RMG) has fallen dramatically by 11.1
percentage points in 2006-07 over 2000-01 followed by gems and
jewellery, leather and leather manufactures and handicrafts. Share of
engineering goods and petro products has increased by 7.6 percentage
points and 10.7 percentage points, respectively. The share of primary
products has declined somewhat with the decline in share of exports from
agricultural and allied sector being partly offset by a rise in the share
of ores and minerals by 2.8 percentage points. The share of chemicals,
including petrochemicals, has increased marginally. The
Q3.
Discuss the trends in the principal imports of India in the last 5 years. 10
Answer:
Imports
in India increased to 35740 USD Million in March of 2015 from 28392.30 USD
Million in February of 2015. Imports in India averaged 6225.45 USD Million from
1957 until 2015, reaching an all time high of 45281.90 USD Million in May of
2011 and a record low of 117.40 USD Million in August of 1958. Imports in India
is reported by the Mini=
Q4.
Write short notes on India’s trade with: 5, 5
a.
LAC region
b.
Africa
Answer:
a.
LAC region:
Even
as India's trade with the LAC region has grown at 25 per cent annually over the
last decade, touching $ 46 billion in 2012-13, bilateral investments remain at
a relatively low level. While the region received only 4 per cent of India's
outward FDI, investments from LAC region in India are still low. Now is the
time to change that. India, the world's =
Q5.
What are Special Economic Zones? Write one sentence each on any 5 SEZs in
India.
(Meaning
and role of SEZ, 5 SEZ) 5, 5
Answer.
Special Economic Zones
A special
economic zone (SEZ) is
a geographical region that is designed to export goods and provide employment.
SEZs may be exempt from laws regarding taxes, quotas, Foreign Direct Investment (FDI)-bans, labour laws and
other restrictive laws in order to make the goods manufactured in the SEZ at a
globally competitive price.
=
Q6.
What is the need and role of Focus Market Scheme? Discuss in detail.
(Focus
market scheme) 10
Answer.
Need and role of Focus Market Scheme
The objective of the
scheme is to offset the high freight cost and other disabilities faced in
accessing select foreign markets as to =
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