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DRIVE SPRING 2016
PROGRAM Master of Business Administration- MBA
SEMESTER 4
SUBJECT CODE &
NAME
IB0015- Foreign Trade of India
1.
Discuss the Theory of Absolute Advantage and Ricardo’s Theory of Comparative
Advantage.
Absolute
Advantage and
Ricardo’s Theory
of Comparative Advantage
Answer: Theory of
Absolute Advantage
In
the late 18th and early 19th centuries, first Adam Smith and subsequently David
Ricardo, explored the basis for international trade as part of their efforts to
make a case for free trade. Their
2.
Discuss in detail Foreign Trade in India since Independence.
Foreign trade in
India
Answer: Foreign
Trade in India since Independence
For
the study of trends of India’s foreign trade during post-independence period, it
is convenient to divide the entire period into seven phases.
(i)
1948-49 to 1950-51— The Eve of Planning:
On
the eve of planning, the foreign trade of India
3.
Explain the Main Features of India’s Foreign Trade Policy
Main Features of
India’s Foreign Trade Policy
Answer: Main
Features of India’s Foreign Trade Policy
Trade
encourages the foreign earnings as well as stimulates greater economic activities.
The main objectives of Import-export policy of the Indian Government have been
to:
(i)
Provide further impetus to exports;
(ii)
4.
Write short notes on India’s trade with:
a.
Special Economic Zones (SEZ)
b.
Free Trade Warehousing Zones
Answer: a) The SEZ policy was announced in April
2000. The objective was to make the SEZs an engine of economic growth by
developing quality infrastructure and offer attractive fiscal package at the
Central and State level with a single window clearance. All the areas providing
a holistic economic development have been addressed and the scheme provides for
further
5.
Discuss in detail the various Sectoral Performance of India’s External Sector
Sectoral
Performance of India’s External
Answer: Sectoral
Performance
Gems
& Jewellery
India’s
gems and jewellery industry is a bright star of the economy, and one of the
important foundations of the country’s export-led growth. The consumption of
gold and jewellery products in India has grown rapidly over the years at the rate
of 10-15 per cent per annum and today, the
6.
What are PTA and FTA? Identify the key difference between the two.
PTA meaning
FTA Meaning
Key difference
Answer: PTA
(Preferential Trade Agreement): A preferential trade area (also
preferential trade agreement, PTA) is a trading bloc that gives preferential
access to certain products from the participating countries. This is done by
reducing tariffs but not by abolishing them completely. A PTA
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