Foreign Trade Easy Questions and Answers

Foreign Trade

Foreign exchange rate means the rate at which the currency of one country can be traded for

1. The currency of any other country in the foreign exchange market
1. US Dollar, which is the strongest currency in any foreign exchange market
1. A fixed basket of currencies consisting of Dollar, Yen and Pound
1. The currency of any other country as determined by the International Monetary Fund

Which one of the following statements is correct with reference to FEMA in India?

1. The Foreign Exchange Regulating Act (FERA) was replaced by Foreign Exchange Management Act (FEMA) in the year 2001
1. FERA was given a sunset clause of one year till 31st may, 2002 to enable Enforcement Directorate to complete the investigation of pending issues
1. Under FEMA, violation of foreign exchange rules has ceased to be a criminal offence
1. As per the new dispensation, Enforcement Directorate can arrest and prosecute the people for the violation of foreign exchange rule

Which one of the following sequences is in correct chronological order that ultimately led to the setting up of World Trade Organisation (WTO)?

1. GATT, Uruguay Rounds, Dunkel Draft, Marrakesh Treaty
1. GATT, Dunkel Draft, Uruguay Rounds, Marrakesh Treaty
1. Uruguay Rounds, GATT, Dunkel Draft, Marrakesh Treaty
1. GATT, Uruguay Rounds, Marrakesh Treaty, Dunkel Draft

We very frequently read about Special Economic Zones (SEZs) in newspapers. These SEZs were established with which of the following objectives?
1. To attract foreign investment directly.
2. To protect domestic market from direct competition from multinationals.
3. To provide more capital to agricultural and allied activities.
Codes

The SEZ Act 2005, which came into effect in February, 2006 has certain objectives. In this context, consider the following
1. Development of infrastructure facilities.
2. Promotion of investment from foreign sources.
3. Promotion of export of services only.
Which of the above are objectives of this Act?