Industries & Foreign Trade - Indian Economy GK Objective Questions and Answers | Page-4

Questions
31 Dumping in the context of international trade refers to:
A Exporting goods of inferior quality
B Exporting goods only to re-import them at cheaper rates
C Exporting goods at prices below the actual cost of production or below the price in it's domestic market
D Exporting goods without paying the appropriate taxes in the receiving country

Answer: Option [C]

The correct answer is Exporting goods at prices below the actual cost of production or below the price in it's domestic market. Dumping is, in general, a situation of international price discrimination, where the price of a product when sold in the importing country is less than the price of that product in the market of the exporting country.

32 Which of the following is true about exports of India ?
A Are confined to a few items
B Are spread over several commodity groups
C Comprise mainly of agro-based products
D Have not shown much of a change since 1960-61

Answer: Option [B]

The correct answer is are spread over several commodity groups.

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33 Why the area under the Special Export Zones (SEZ) has been declared ‘foreign territory’?
A SEZ goods are free of excise duty
B SEZ goods cannot be sold in the domestic tariff area
C Goods cannot be brought into the domestic tariff area
D Goods brought from the SEZ to the domestic tariff area are to be treated as ‘imported’ goods

Answer: Option [D]

The correct answer is Goods brought from the SEZ to the domestic tariff area are to be treated as ‘imported’ goods. SEZs are treated as foreign territory for tax purposes even though they are located within a country's borders. Supplies into SEZs are exempt from paying GST because they are considered as exports. But, when an SEZ supplies goods/services to anyone, it will be deemed a regular inter-state supply and will attract IGST.

34 Invisible Export refers to export of :
A Services
B Unrecorded goods
C Prohibited goods
D Goods through smuggling

Answer: Option [A]

Invisible Export refers to export of Services. In balance of payment, invisible exports refers to the export of services which a domestic country exports to the outside world. These services are regarded as invisible owning to their nature as they are intangible.

35 Tertiary sector does not include :
A Trade
B Electricity
C Transport
D Business Services

Answer: Option [B]

Tertiary sector does not include Electricity. Electricity doesn't fall into the category of tertiary sector because it is a joint collaboration between government with the states as they both share the funding part by creating overall economic growth.

36 Whose performance is highest among the following core industries ?
A Automobile
B Petroleum
C Mining
D Cement

Answer: Option [C]

The correct answer is Mining.

37 Which institution provides long term finance to industries ?
A GIC
B LIC
C UTI
D All of these

Answer: Option [D]

The correct answer is All of these.

38 Which of the following authority sanctions foreign exchange for the import of goods ?
A Exchange Bank
B State Bank of India
C Ministry of Finance
D Reserve Bank of India

Answer: Option [D]

The correct answer is Reserve Bank of India.

39 Foreign trade is promoted by :
A STC
B MMTC
C ECGC
D All of these

Answer: Option [D]

Foreign trade is promoted by STC, MMTC and ECGC.

40 What does it mean by Import substitution ?
A Gradual reduction of imported goods to save foreign exchange
B Importing new items in place of old items of import
C Replacing import items by domestic production of such items
D Increasing domestic supply of goods by imposing import restrictions

Answer: Option [C]

The correct answer is Replacing import items by domestic production of such items. Import substitution is a strategy under trade policy that abolishes the import of foreign products and encourages production in the domestic market. The purpose of this policy is to change the economic structure of the country by replacing foreign goods with domestic goods.

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