All Categories MCQs
Topic Notes: All Categories
General Description
Plato
- Biography: Ancient Greek philosopher (427–347 BCE), student of Socrates and teacher of Aristotle, founder of the Academy in Athens.
- Important Ideas:
- Theory of Forms
- Philosopher-King
- Ideal State
82631
Which of the following is not classified as a method or incentive used to attract Foreign Direct Investment (FDI)?
Answer:
Horizontal FDI
Horizontal FDI refers to a strategy where a company expands its operations into a foreign country to produce the same type of goods or services as it does in its home country. It is a type of investment strategy, not a policy tool or incentive used by governments to attract capital.
82632
Which factor is fundamentally essential for the facilitation of international trade?
Answer:
Means of transportation
International trade relies heavily on the physical movement of goods across borders. Efficient means of transportation, including shipping, air freight, and logistics networks, are the backbone of global commerce, enabling the timely delivery of products from producers in one country to consumers in another.
82633
What does the term 'Autarky' signify in the context of international trade?
Answer:
The idea of self sufficiency and no international trade by a country
Autarky refers to a state of economic self-sufficiency where a nation operates as a closed economy. In such a system, the country does not engage in international trade, relying entirely on its own production to meet the needs of its population. This concept is the opposite of an open economy that participates in global markets through imports and exports to achieve comparative advantage.
82634
The Balance of Payments (BoP) statement is a financial document that tracks changes in assets, liabilities, and net worth over a specific period. Which term best completes this definition?
Answer:
specified
The Balance of Payments is a systematic record of all economic transactions between residents of a country and the rest of the world. It is prepared for a specified accounting period, typically a year or a quarter, to ensure that the inflows and outflows of capital are accurately captured and analyzed for economic policy purposes.
82635
In which type of trade is a foreign bank draft typically utilized?
Answer:
Foreign trade
A foreign bank draft is a financial instrument issued by a bank in one country, payable in the currency of another country. It is specifically designed to facilitate international payments and settlements between parties located in different nations, making it an essential tool for conducting foreign trade transactions securely.
82636
An appreciation in a country's exchange rate typically leads to which of the following outcomes?
Answer:
(i) and (iii) only
An appreciation makes imports cheaper, which helps lower domestic inflation (i), and improves the terms of trade by increasing the purchasing power of the currency (iii). However, it generally makes exports more expensive, potentially reducing export volume and worsening the current account balance.
82637
What is the primary objective of dumping in international trade?
Answer:
Low-priced commodities
Dumping is a predatory pricing strategy where a company exports a product to a foreign market at a price lower than its domestic price or lower than the cost of production. The goal is to gain market share by driving out domestic competitors in the importing country, effectively flooding the market with low-priced goods.
82638
Which region was the primary destination for Indian exports during the 2013-14 fiscal year?
Answer:
OECD countries
During the 2013-14 period, the Organization for Economic Co-operation and Development (OECD) countries collectively represented the largest market for Indian exports. This reflects the significant trade volume between India and developed economies, which are members of the OECD, compared to other specific regional blocs or individual nations.
82639
Which of the following measures does not serve as an incentive for increasing exports?
Answer:
to increase the intrinsic value of money
Increasing the intrinsic value of money (appreciation) makes exports more expensive for foreign buyers, thereby reducing competitiveness. Conversely, devaluation or subsidies are typically used to make exports more attractive and competitive in the international market.
82640
What is the term for the trade practice where goods are imported specifically for the purpose of re-exporting them to another country?
Answer:
Entrepot
Entrepot trade, also known as re-export trade, involves importing goods from one country and subsequently exporting them to another country, often with little or no processing. This is a common practice in major trading hubs and ports that serve as intermediaries in international commerce.