NTA UGC NET/JRF Exam, December 2022 (Commerce) Shift-I

A non-tariff barrier is a trade restriction such as quota, embargo or sanction that countries use to further their political and economical goals.
• Countries usually opt for non-tariff barriers (rather than traditional tariff-s) in international trade.
• Non-tariff barriers include quotas, embargoes, sanctions, and levies.
• Phyto sanitary regulations is to be adequately addressed by India while signing FTA with any country that has potential to import fruits, vegetables and other plant based products from India.

The Heckscher-Ohlin theory evaluates the equilibrium of trade between two countries that have varying specialties and natural resources.
• The theory explains how a nation should operate and trade when resources are imbalanced throughout the world.
• The theory isn't limited to commodities, but also incorporates other production factors such as labor.
According to this theory following statements are correct :
(i) Trade should take place among countries that have greater differences in their factor endowments.
(ii) A country with a relatively cheaper cost of labour would export labour-intensive products.

India-UAE comprehensive Economic Partnership Agreement (CEPA).
• It is a kind of free trade pact that covers negotiations on the trade in services and investment, and other areas of economic partnership.
• It may even consider negotiation in areas such as trade facilitation and customs operation, competition and IPR.
• Partnership agreements or co-operation agreements are more comprehensive than free Trade Agreements.
• CEPA also looks into the regulatory aspect of trade and encompasses an agreement covering the regulatory issues.
• India has signed CEPAs with South Korea and Japan.

The Government of India on 27-09-2022 extended the existing Foreign Trade Policy (2015-20) upto March 2023 on account of volatile global economic and geo-political situation and currency fluctuations.

Ind AS 21 is related to 'The Effects of changes in Foreign Exchange Rates'. Ind AS 21 requires each entity to determine its functional currency and translate foreign currency items into functional currency and report effects of such translation in the financial statements.

The concept of conservatism (also called prudence) provider guidance for recording transactions in the book of accounts and is based on the policy of playing safe. This concept states accept all losses and expenses and ignore all profits and incomes until they are realised.

The subject matter of macroeconomics is income, unemployment, inflation, money supply, price level, investment and economic growth and development. The purpose of macroeconomics is to provide a logical framework for the analysis of these phenomena.