International Trade (External Sector) Part-III

Total Questions: 50

11. As per the recent data, which among the following is the top State in terms of number of domestic tourist visits: [Chhattisgarh P.C.S. (Pre) 2011]

Correct Answer: (a) Andhra Pradesh
Solution:As per the question period, option (a) was the correct answer. As per the 'India Tourism Statistics 2023', the share of top 5 States/UTs of India in number (in million) of Domestic Tourist Visits in 2022 is as follows: Uttar Pradesh (317.91 million), Tamil Nadu (218.58 million), Andhra Pradesh (192.72 million), Karnataka (182.41 million) and Gujarat (135.81 million).

12. The city which has been selected by a famous International Magazine 'Travel and Leisure' in its survey 2009 as the best city from tourism point of view in the world is: [U.P.P.C.S (Pre) 2010]

Correct Answer: (a) Udaipur
Solution:Udaipur (India) had been selected by the famous International Magazine, 'Travel + Leisure', in its survey of 2009 as the best city from tourism point of view in the world. As per the Travel + Leisure' magzine's latest survey of 2023, Oaxaca (Mexico) is placed at the first rank in the '25 Best Cities in the World', while Udaipur got the 2nd place. The other Indian city to get the place in the list is Mumbai (10th),

13. Nathu La was reopened in 2006 for trans-border trade between India and: [U.P.P.C.S. (Mains) 2006]

Correct Answer: (b) China
Solution:Nathu La is a mountain pass in the Himalayas connecting Sikkim with China's Tibet Autonomous Region. It was sealed for almost 4 decades after China suppressed a Tibetan uprising in 1959. Nathu La pass was re-opened in 2006 to shorten the travel distance to important Hindu and Buddhist pilgrimage sites in the region and give a boost to India-China trade.

At present, Nathu La is one of the three open trading border posts (the other two being Shipki La, Himachal Pradesh and Lipulekh, Uttarakhand) between India and China and is famous for its picturesque beauty and beautiful environment.

14. India signed the Economic Cooperation and Trade Agreement (ECTA) with which country? [B.P.S.C. (Pre) 2023]

Correct Answer: (b) Australia
Solution:India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) has came into effect from 29 December, 2022. This agreement was signed on 2 April, 2022. Economic Cooperation and Trade Agreement (ECTA) signed between India and Australia is a transformative agreement which will unlock the next level of potential in trade and investment.

The Ind-Aus ECTA provides an institutional mechanism to encourage and improve trade between the two countries. It covers almost all the tariff lines dealt by India and Australia.

15. India in February 2011 signed Free Trade Agreement with: [U.P.P.C.S (Pre) 2011]

Correct Answer: (c) Japan
Solution:On 16 February, 2011, India had signed Free Trade Agreement or Comprehensive Economic Partnership Agreement- CEPA with Japan. The main objective of this agreement is to liberalise and facilitate trade in goods and services between the parties and to increase investment opportunities.

Free Trade Agreements are comprehensive trade deals between two or more countries, aimed at reducing or eliminating trade barriers such as tariffs and import/export restrictions. These agreements provide preferential access to markets by offering tariff concessions and lowering non-tariff barriers.

FTAs cover trade in goods (agricultural and industrial products) and trade in services (banking, IT, construction). Advanced FTAs may include chapters on investment, intellectual property rights (IPRs), government procurement, and competition policy.

16. India has recently signed Comprehensive Economic Co-operation Agreement with: [U.P.P.C.S (Pre) 2011]

Correct Answer: (b) Malaysia
Solution:Agreement-CEPA with Malaysia, On 18 February, 2011 in CEPA with prehensive Economic Partnership Putrajaya city (Malaysia),

Comprehensive Economic Partnership Agreement (CEPA) is a comprehensive trade agreement that encompasses a wide range of economic cooperation areas. These agreements go beyond traditional trade agreements by addressing issues such as services, investment, competition, intellectual property rights, and more. CEPA agreements aim to promote economic integration and cooperation between nations.

17. Which country has recently signed a free trade agreement (FTA) with the United Arab Emirates? [B.P.S.C. (Pre) (Re. Exam) 2022]

Correct Answer: (a) Israel
Solution:Israel signed a free trade agreement (FTA) with the United Arab Emirates (UAE) on 31st May 2022, its first with an Arab country and one which eliminates most tariffs and aims to lift their annual bilateral trade to more than US$ 10 billion. The UAE was the first Gulf country to normalize ties with Israel and only the third Arab nation to do so after Egypt and Jordan.

18. Recently, which of the following two countries signed a bilateral Free Trade Agreement (FTA)? [U.P.P.C.S. (Mains) 2002]

Correct Answer: (a) China and Bangladesh
Solution:In January 2002, China and Bangladesh signed a bilateral Free Trade Agreement (FTA), in which economic co-орегаtion and free trade were main subjects.

Free Trade Agreements are comprehensive trade deals between two or more countries, aimed at reducing or eliminating trade barriers such as tariffs and import/export restrictions. These agreements provide preferential access to markets by offering tariff concessions and lowering non-tariff barriers.

FTAs cover trade in goods (agricultural and industrial products) and trade in services (banking, IT, construction). Advanced FTAs may include chapters on investment, intellectual property rights (IPRs), government procurement, and competition policy.

19. Which country among the following used maximum number of anti-dumping measures during 1995-2005? [U.P.P.C.S. (Mains) 2005]

Correct Answer: (d) India
Solution:Dumping is said to occur when the goods are exported by a country to another country at a price lower than its normal value. This is an unfair trade practice which can have a distortive effect on international trade. Anti-dumping is a measure to rectify the situation arising out of the dumping of goods and its trade distortive affect.

The use of anti-dump- ing measure as an instrument of fair competition is permitted by the WTO. As per data of the World Trade Organization, India used maximum number of anti-dumping measures dur- ing 1995-2005. As per 'World Tariff Profiles 2023', top 5 countries in terms of anti-dumping measures taken in recent years are as follows:

Country201420212022
USA257486493
India208197142
Brazil127141134
Türkiye134131129
China103125118

20. Super '301' is related to: [U.P.P.C.S. (Pre) 1993]

Correct Answer: (d) Blockade in free trade
Solution:According to U.S. Department of State, 'Super 301' (or Special 301) refers to an annual process by which the Office of the U.S. Trade Representative (USTR) identifies those priority foreign country practices, the elimination of which is likely to have the most significant potential to increase U.S. exports.

The Special 301 Report prepared by the USTR identifies trade barriers to U.S. companies and products in other countries. This report is published pursuant to Section 301 of the U.S. Trade Act of 1974 as amended by Section 1303 of the Omnibus Trade and Competitiveness Act of 1988.