Microtheme: Trade —
18 questions asked in Prelims in the past.

1. [2024] Consider the following statements:
   Statement-I: India does not import apples from the United States of America.
   Statement-II: In India, the law prohibits the import of Genetically Modified food without the approval of the competent authority.
   Which one of the following is correct in respect of the above statements?
   • (a) Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
   • (b) Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
   • (c) Statement-I is correct, but Statement-II is incorrect
   • (d) Statement-I is incorrect, but Statement-II is correct*
   Correct Answer: (D) Statement-I is incorrect, but Statement-II is correct*
2. [2024] Consider the following statements:
   Statement-I: Recently, Venezuela has achieved a rapid recovery from its economic crisis and succeeded in preventing its people from fleeing/emigrating to other countries.
   Statement-II: Venezuela has the world’s largest oil reserves.
   Which one of the following is correct in respect of the above statements?
   • (a) Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
   • (b) Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
   • (c) Statement-I is correct, but Statement-II is incorrect
   • (d) Statement-I is incorrect, but Statement-II is correct*
   Correct Answer: (D) Statement-I is incorrect, but Statement-II is correct*
3. [2023] Consider the following statements:
   Statement-I: Switzerland is one of the leading exporters of gold in terms of value.
   Statement-II: Switzerland has the second largest gold reserves in the world.
   Which one of the following is correct in respect of the above statements?
   • (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
   • (b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
   • (c) Statement-I is correct but Statement-II is incorrect
   • (d) Statement-I is incorrect but Statement-II is correct
   Correct Answer: (C) Statement-I is correct but Statement-II is incorrect
4. [2023] Consider the following statements:
   Statement-I:
   India accounts for 3.2% of global exports of goods.
   Statement-II:
   Many local companies and some foreign companies operating in India have taken advantage of India’s ‘Production-linked Incentive’ scheme.
   Which one of the following is correct in respect of the above statements?
   • (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
   • (b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
   • (c) Statement-I is correct but Statement-II is incorrect
   • (d) Statement-I is incorrect but Statement-II is correct
   Correct Answer: (D) Statement-I is incorrect but Statement-II is correct
5. [2020] Consider the following statements:
   1. The value of Indo-Sri Lanka trade has consistently increased in the last decade.
   2. “Textile and textile articles” constitute an important item of trade between India and
   Bangladesh.
   3. In the last five years, Nepal has been the largest trading partner of India in South Asia.
   Which of the statements given above is/are correct?
   • (a) 1 and 2 only
   • (b) 2 only
   • (c) 3 only
   • (d) 1, 2 and 3
   Correct Answer: (B) 2 only
6. [2020] With reference to the international trade of India at present, which of the following statements is/are correct?
   1. India’s merchandise exports are less than its merchandise imports.
   2. India’s imports of iron and steel, chemicals, fertilisers and machinery have decreased in recent years.
   3. India’s exports of services are more than its imports of services.
   4. India suffers from an overall trade/current account deficit.
   Select the correct answer using the code given below:
   • (a) 1 and 2 only
   • (b) 2 and 4 only
   • (c) 3 only
   • (d) 1, 3 and 4 only
   Correct Answer: (D) 1, 3 and 4 only
7. [2020] With reference to Trade-Related Investment Measures (TRIMS), which of the following
   statements is/are correct?
   1. Quantitative restrictions on imports by foreign investors are prohibited.
   2. They apply to investment measures related to trade in both goods and services.
   3. They are not concerned with the regulation of foreign investment.
   Select the correct answer using the code given below:
   • (a) 1 and 2 only
   • (b) 2 only
   • (c) 1 and 3 only
   • (d) 1, 2 and 3
   Correct Answer: (C) 1 and 3 only
8. [2018] Consider the following statements:
   1.The quantity of imported edible oils is more than the domestic production of edible oils in the last five years.
   2.The Government does not impose any customs duty on all the imported edible oils as a special case.
   Which of the statements given above is/are correct?
   • (a) 1 only
   • (b) 2 only
   • (c) Both 1 and 2
   • (d) Neither 1 nor 2
   Correct Answer: (A) 1 only
9. [2017] ‘Broad-based Trade and Investment Agreement (BTIA)’ is sometimes seen in the news in the context of negotiations held between India and
   • (a) European Union
   • (b) Gulf Cooperation Council
   • (c) Organization for Economic
     Cooperation and Development
   • (d) Shanghai Cooperation Organization
   Correct Answer: (A) European Union
10. [2016] Which of the following best describes the term ‘import cover’, sometimes seen in the news?
    • (a) It is the ratio of value of imports to the Gross Domestic Product of a country
    • (b) It is the total value of imports of a country in a year
    • (c) It is the ratio between the value of exports and that of imports between two countries
    • (d) It is the number of months of imports that could be paid for by a country's international
      reserves
    Correct Answer: (D) It is the number of months of imports that could be paid for by a country's international
    reserves
11. [2015] The terms ‘Agreement on Agriculture’, ‘Agreement on the application of Sanitary and
    Phytosanitary Measures’ and ‘Peace Clause’ appear in the news frequently in the context of the
    affairs of the
    • (a) Food and Agricultural Organization
    • (b) United Nations Framework Conference on Climate Change
    • (c) World Trade Organization
    • (d) United Nations Environment Programme
    Correct Answer: (C) World Trade Organization
12. [2015] In India, the steel production industry requires the import of
    • (a) Saltpetre
    • (b) rock phosphate
    • (c) coking coal
    • (d) All of the above
    Correct Answer: (C) coking coal
13. [2014] With reference to Balance of Payments, which of the following constitutes/constitute the Current Account?
    1. Balance of trade
    2. Foreign assets
    3. Balance of invisibles
    4. Special Drawing Rights
    Select the correct answer using the code given below:
    • (a) 1 only
    • (b) 2 and 3 only
    • (c) 1 and 3 only
    • (d) 1, 2 and 4 only
    Correct Answer: (C) 1 and 3 only
14. [2013] The balance of payments of a country is a systematic record of
    • (a) all import and export transactions of a country during a given period of time, normally a
      year
    • (b) goods exported from a country during a year
    • (c) economic transation between the government of one country to another
    • (d) capital movements from one country to another
    Correct Answer: (A) all import and export transactions of a country during a given period of time, normally a
    year
15. [2010] Which of the following is/are treated as artificial currency?
    • (a) ADR
    • (b) GDR
    • (c) SDR
    • (d) Both ADR and SDR
    Correct Answer: (C) SDR
16. [2010] In order to comply with TRIPS Agreement, India enacted the Geographical Indications of Goods (Registration & Protection) Act, 1999. The difference/differences between a ‘Trade Mark’ and a Geographical Indication is/are:
    1. A Trade Mark is an individual or a company’s right whereas a Geographical Indication is a community’s right.
    2. A Trade Mark can be licensed whereas a Geographical Indication cannot be licensed.
    3. A Trade Mark is assigned to the manufactured goods whereas the Geographical Indication is assigned to the agricultural goods/products and handicrafts only.
    Which of the statements given above is/are correct ?
    • (a) 1 only
    • (b) 1 and 2 only
    • (c) 2 and 3 only
    • (d) 1,2 and 3
    Correct Answer: (B) 1 and 2 only
17. [2009] With which one of the following has the B.K. Chaturvedi Committee dealt?
    • (a) Review of Centre-States relation
    • (b) Review of Delimitation Act
    • (c) Tax reforms and measures to increase revenues
    • (d) Price reforms in the oil sector
    Correct Answer: (D) Price reforms in the oil sector
18. [2007] MCA-21 is a major initiative taken up by the Government of India in which one of the following areas?
    • (a) Foreign direct investment in India
    • (b) Attracting international tourists
    • (c) e-governance
    • (d) Modernization of airports
    Correct Answer: (C) e-governance