Reference no: EM13731752

Part -1:

Assignment A

1. How International Monetary Funds helps its member countries in their economic development?

2. What is the role of World Bank in promoting International Trade? What are the functions of IDA and IRDB?

3. How has formation of European Countries helped the members countries in further improving their trade relations?

4. What is the role of WTO in promoting International Trade among member countries?

5. African Development bank have played a very important role is economic development of the African nations. Comment.

1. Critically examine the role of the following organization in promoting International trade

a) UNCTAD

b) International Trade Centre ( ITC ), Geneva

c) Centre for Promotion of Imports from Developing Countries

2. Briefly evaluate the main features of African Union? Analyze the impact of formation of this union on International Trade.

3. What is the aim and objective of COMESA? How does it function> Critically examine the role of COMESA in economic development of the member countries.

Assignment B

1. Considering the above facts do your think that formation of NAFTA was beneficial for Mexico and Canada.

2. What are the advantages of forming regional trade blocks. Which are the major trading blocks in Africa. Do you think these trading blocks have contributed towards the economic development of the member countries?

Assignment C

1. A situation where any advantage given by one member of the WTO to another member must be extended to all WTO members.
A) The excessive invoicing principle
B) The comparative advantage principle
C) The intra-regional principle
D) The most favoured nation principle

2." Millennium Development Goals " are introduced by __________?
A) United Nations Organization
B) World Bank
C) ASEAN
D) IMF

3 . Which of the following is not the role of IMF?
A) Country Surveillance
B) Financial Assistance to members to correct balance of payments problems
C) Technical assistance in its areas of expertise
D) Dispute Settlement

4. Which of the following best describes the primary function of the International Monetary Fund?
A) It acts as the Secretary of Treasury.
B) It provides relief to needy counties in the United States.
C) It provides assistance to needy contries.
D) It assists in banking affairs to keep foreign currency exchange balanced.

5. The EU treaty creates open borders for trade by providing for the free flow of all of the following EXCEPT
A) capital.
B) goods.
C) services
D) custom duties.

6. A dispute among members of the WTO is first heard by
A) the director of foreign affairs.
B) the WTO's appellate body.
C) a three-member panel of the WTO.
D) leaders from their respective countries.

7. The Maastricht Treaty included provisions in which of the following areas?
A) justice and home affairs
B) monetary union
C) military integration
D) political integration
E) All these answers are correct.

8. The African Union is an example of ________ integration.
A) regional
B) relative
C) global
D) bilateral

9. Regional trade groups in Africa ________.
A) are more concerned about political than economic issues
B) often overlap in terms of membership
C) have not been implemented due to trade barriers
D) have resulted in countries relying more on each other than on former colonial powers for trading relationships

10. The WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) ________.
A) allows rich countries to produce generic versions of patented drugs without having to pay royalties to the patent holder
B) permits developing countries to import generic products from other countries if they don't have the capacity to produce generic drugs
C) requires tiered pricing for most drugs
D) deals with vaccines, such as for malaria, but does not cover drugs such as those used to treat HIV/AIDS

11. The NAFTA side agreements include ________.
A) labor standards only
B) internal tariff laws
C) environmental standards only
D) environmental and labor standards

12. Labor and environmental standards were included in the NAFTA agreement ________.
A) to protect U.S. consumers from receiving environmentally damaging products from abroad
B) because of rules required by the WTO
C) to help opponents of NAFTA concerned about labor and environmental problems in Mexico
D) in order to convince the Mexican Congress that U.S. investors would not damage Mexico.

13. Rules of origin ensure that ________.
A) only goods that were produced mostly within the member country are eligible for the more liberal tariff conditions created by FTA
B) only African products may be shipped to member countries
C) the members of FTA may import products from only neighboring members
D) all members have the same external tariffs

14. The euro, the currency of the European Union, ________.
A) was adopted by all 15 existing members when it was first initiated
B) must be adopted by countries as a precondition to joining the European Union
C) is open to countries that are not members of the EU as long as they use the European Central Bank to set interest rates
D) was designed to help eliminate currency as a barrier to trade in the EU

15. Which of the original 15 members of the European Union did not adopt the euro when it was first implemented?
A) the U.K.
B) France
C) Germany
D) Malta

16. Assume that U.S. companies are importing the same product from Mexico and Taiwan. The United States enters into an FTA with Mexico but not with Taiwan. Consequently, the United States begins to import more goods from Mexico (due to lower tariffs) than from Taiwan, even though the Mexican products may not be any better or cheaper. This is an example of ________.
A) trade specialization
B) trade internalization
C) trade creation
D) trade diversion

17. The ________ set steps to accomplish monetary union in the European Union, which included the creation of the euro.
A) Single European Act
B) Treaty of Maastricht
C) European Monetary Union
D) European Central Bank

18. The ________ is the common currency of the European Union.
A) franc
B) pound
C) euro
D) mark

19. The three major responsibilities of the ________ are legislative power, control over the budget, and supervision of executive decisions.
A) European Commission
B) European Council
C) European Parliament
D) European Court of Justice

20. The EU organization that provides political leadership, drafts laws, and runs the daily programs of the EU is the ________.
A) European Commission
B) Council of Ministers
C) European Parliament
D) European Central Bureaucracy

21. The EU organization that ensures consistent interpretation and application of EU treaties is the ________.
A) European Commission
B) Council of Ministers
C) Court of Justice
D) Council of Treaties and Laws

22. The ________ is the European Union's ultimate decision-making body and is composed of the different ministers of the member countries.
A) European Commission
B) Council of the European Union
C) European Parliament
D) European Court of Justice

23. Trade shifting to countries in a group at the expense of trade with countries not in the group, even though the nonmember companies might be more efficient in the absence of trade barriers, is known as _____.
A) trade specialization
B) trade diversion
C) trade creation
D) trade internalization

24. The goal of a ________ is to abolish all tariffs among member countries.
A) customs union
B) common market
C) free trade agreement
D) Common internal tariff

25. The European Union is an example of a ________.
A) customs union
B) free trade agreement only
C) regional trade agreement with no internal barriers but with individual external tariffs
D) common language agreement

26. A ________ results when free mobility of factors of product is added to a customs union.
A) customs union
B) common market
C) free trade agreement
D) regional trade agreement

27. A trade agreement where the member countries have a common external tariff is a ________.
A) free trade agreement
B) customs union
C) regional free trade zone
D) NAFTA-style agreement

28. Geographic proximity is an important factor in establishing trading blocs because ________.
A) countries next to each other rarely have trade barriers
B) neighboring countries typically use the same language
C) good trading relationships often exist, so it is easier to reduce barriers and increase trade for countries that are close geographically
D) the WTO gives preference to trading blocs that involve two or more countries that share a common border

29. Most trade groups contain countries in the same area of the world. Why is this so?
A) The distances that goods need to travel between such countries are short.
B) Distribution channels are not easily established in adjacent countries.
C) Adjacent countries are reluctant to coordinate policies.
D) Neighboring countries usually lack a common history and interests.

30. Trade agreements, whether regional, bilateral, or global, help companies ________.
A) by opening up markets in countries that are part of the agreements
B) to invest more abroad but not necessarily export more
C) to export products to countries that are part of the agreements but not necessarily import more
D) make export and import decisions, but they do not help with investment decisions

31. The ________ clause embodied the fundamental principle of GATT-trade without discrimination.
A) most-favored-nation
B) nontariff barriers
C) free rider
D) normal trade relations

32. _____is a WTO principle that allows member nations to extend tariff cuts to WTO members.
A) Most-favored-nation
B) Nontariff barrier relations
C) The free rider policy
D) Normal trade relations

33. Under the WTO agreement, ________.
A) Baa a dispute resolution mechanism allows countries to bring grievances to the WTO against countries that levy inappropriate trade discrimination measures
B) there there ithere is no dispute resolution mechanism except for trade involving environmental products
C) countries are countries are allowed to place trade barriers on member countries with no particular justification, because the WTO has no enforcement mechanism, just like GATT
D) tariffs are nottariffs are permitted to be levied by developed countries against developing countries but not against each other

34. A major problem with the Doha Round is that ________.
A) developing countries want developed countries to better protect their intellectual property
B) developed countries want a reduction in agricultural subsidies by the developing countries
C) the WTO does not want the developing countries to liberalize their investment rules
D) because of security issues, not all countries were able to attend the meetings, so it was impossible to get a consensus vote

35. _____ integration is the political and economic agreements among countries that give preference to member countries to the agreement.
A) Global
B) Economic
C) Bilateral
D) Regional

36. Which of the following countries are members of NAFTA?
A) the United States, Canada, and Mexico
B) North America and Latin America
C) the United Kingdom, the United States, and Canada
D) the United States, Canada, and Australia

37. Which of the following country is not a member of SADC?
A) Angola
B) Nigeria
C) Zambia
D) South Africa

38. Member countries of the African Union are planning to establish a Court of Justice for which the statutes defining the composition and functions of the Court of Justice will be submitted to the Assembly in
A) Maputo
B) Durban
C) Lome
D) Lusaka

39. Treaty to establishing the African Economic Community (AEC) was signed in
A) 1993
B) 1991
C) 1990
D) 1998

40. Which of the following country is not a member of SAARC?
A) Bangladesh
B) Bhutan
C) India
D) China

Part -2:

1. a. Distinguish between Export order, Agreement & Contract.

b. What are the important elements of an Export Order? Explain in detail the role of different elements.

2. What are various modes of payment in trade? Explain how is L/C considered to be superior than the other methods? Explain in detail the different types of L/Cs & the categories of exporters. Who demand them?

3. What are the various types of export finances? What is the criteria for their release? What is the role of various agencies involved in financing or protecting the export finances?

4. Why do we require pre-shipment inspection of goods? Explain in detail the different types of pre-shipment inspections.

5. What do you understand by Risk Management in Exports? What are the various causes for the Export Risk? How can these Risks be minimized?

1. Explain the Role of Documentation in the Export Trade. How is aligned documentation system helpful in the promotion of Export Trade? Explain the Role of Various Regulation Documents.

2. Describe the formalities and registrations with the different authorities before an exporter can accept export contract?

3. How have the draconian provisions on FERA been modified in the FEMA? Discuss in detail the provisions pertaining to:

Change of Tenor of Bill.
Delayed Remittance
Payment of Export Claims
Retention of Foreign Currency Amount

1. Prepare one set of Documents as required by L/C issuing Bank of YOUR COUNTRY.

2. Write Short Notes on:

(a) Let Export Order
(b) Let Ship Order
(c) Role of Customs Appraiser and Dock Appraiser
(d) Port Procedures

1. IEC is issued by:
a) Central Reserve Bank
b) Ministry of Commerce
c) Ministry of Finance
d) Any of the above

2. Cash Exports Mean:
a) ;ayraca in advance
b) =gaga at sight
c) Payment in 90 days
d) tlow„„culralubm

3. Uniform Customs & Practice is drafted by:
a) Chamber of Commerce
b) Main Central Bank of the country
c) Commercial Banks
d) None of the above

4. SDF is used as:
a) Principal Document
b) Regulatory Document
c) Auxiliary Document
d) None of the above

5. Amount eligible for EEFC A/c is:
a) 50%
b) 80%
c) 100%
d) None of the above

6. Packing Credit Finances is extended for:
a) Procurement of Raw Material
b) WacinatIr„„awach.
c) Iguarearapprentsaktu
d) AllAthrtaxwanu

7. Master Document 1 is concerned with:
a) Principal Commercial Documents
b) Auxiliary Commercial Documents
c) Regulatory Documents
d) None of the above.

8. In CIF Contract, Claim if would be paid to:
a) The Seller
b) The Buyer
c) The Seller or Buyer
d) None of the above.

9. The time for presentation of documents after shipment is:
a) 15 days
b) 25 days
c) 21 days
d) Any time after shipment

10. Running Account facility is meant for:
a) Packing credit
b) Bills Facility
c) Cash Credit
d) All of the above

11. To secure the Bank for packing credit finance ECGC provides:
a) WTPSG
b) WTPCG
c) Comprehensive Risk Policy
d) All of the above

12. ISO is based on the principle of:
a) CWI
b) IPQC
c) TQM
d)scs

13. In Small Exporters Policy ECGC pays loss on account of Commercial Risk up to:
a) 90%
b) 100%
c) 95%
d) None of the above

14. Total Loss is Marine Insurance means:
a) ATL
b) CTL
c) Both ATL & CTL
d) None of the above

15. How can exporter protect his fluctuation Risk?
a) By Hedging
b)
c) From PLI
d) All of the above

16. Airway Bill is:
a) Quasi Negotiable Instrument
b) Non-Negotiable Instrument
c) Negotiable Instrument
d) None of the above

17. In Letter of Credit the Bill of Exchange can be drawn on:
a) The Applicant
b) The Beneficiary
c) The Issuer
d) The Negotiating Bank

18. AR-4 is related to:
a) Customs Declaration
b) Shipping Line Certificate
c) Excise Declaration
d) None of the above

19. The Export Sight Bill must be realized in
a) 100 days
b) 25 days
c) 21 days
d) 7 days

20. In Negotiation Credit the Negotiating Bank negotiates the documents:
a) Without Recourse
b) With Recourse
c) With or Without Recourse
d) All of the above

21. Caused Bill of Lading mean:
a) Late Shipment
b) Shipment to a different port
c) Bad state of Packing
d) All of the above

22. In DBK the Customs is obligated to pay the claim of Exporter in:
a) 30 days
b) 7 days
c) 60 days
d) 75 days

23. Maximum MDA facility is means for:
a) Total expenditure of Trade Fair
b) Rs. 90000/- for Trade Fair participation
c) Rs. 100000/- for Trade Fair participation
d) Rs. 50000/- for Trade Fair participation

24. Present Exim Policy is:
a) AM 2000 - 2002
b) AM 2001 - 2002
c) AM 1997 - 2002
d) None of the above

25. Double weightage factor is for:
a) FaclutrtAdvarnsula,
b) Faclutrter,,, Zaclutrtgam-1445,
d) All the above

26. Star Trading House can be recognized on Exporting:
a) 11.91,1amilliwas„xnutallaygar.
b) USD 80 million Exports in 3 years.
ActJaha,sulasilmr..
d) Auragat.,;vuutaf,1,15,02,511,railligajnansivs.

27. The validity period for Star Exporters recognition is:
a) 5 years.
b) 3 years
c) AS decided by Govt. Foreign Trade Deptt„
d) All the above

28. If an Import Licence is issued for 24 months on 24.12.2000 the last date of shipment would tW:
a) 24.12.2002
b) 23.12.2002
c) 31.12.2002
d) 30.11.2002

29. In EPCG scheme the Export Obligations can be achieved in:
a) 3 years
b) 5 years
c) 8 years
d) 10 years

30. The second hand capital goods should not be more than:
a) 10 years old
b) 5 years old
c) 8 years old
d) None of the above

31. Advance Licence is meant for:
a) Raw Materials & Components
b) Capital Goods
c) Capital Goods & Raw Material
d) None of the above

32. The following duties are neutralized by DEPB:
a) Excise Duty
b) Custom Duty
c) Custom & Excise Duties
d) None of the above

33. The Export declaration forms used in Software Exports are:
a) SOFTEX Form
b) SDF Form
c) G R Form d ) AttY,P,OLPUtte,03.

34. In Foreign Exchange Cover, if the Currency is at premium. The premium for 3 months is
10/1,52„5„. If the exchange rate in a particular date is 1 US$= Rs. 47.50/- so what would be the Mpg rate after 3 months.
a) Rs. 47.60/-
b) Rs. 47.75/-
c) Rs. 47.65/-
d) Rs. 47.70/-

35. In Indian exchange management system the profits are earned by Banks by adopting the taming system:
a) Buy bid' sell low
b) Buy bawsell high
c) Buy fiat sell low.
d) Buy bawsell par.

36. Shall the Bank accept an Insurance adicx,
a) Only if issued before the shipment date
b) Issued after the shipment date with risk starting before the shipment
c) Both the above

37. Full Set Term with regards to shipment mean:
a) Full set of all documents called for
b) Full set of Negotiable documents
c) All original by lading
d)All of the above

38. In ECGC small exports policy the shipment declaration have to be made:
a) Every month
b) Once in two months
c) On Quarterly basis
d) Twice during the currency policy