IB0015- Foreign Trade of India

DRIVE SPRING 2016

PROGRAM Master of Business Administration- MBA

SEMESTER 4

SUBJECT CODE &

NAME

IB0015- Foreign Trade of India

 

  1. Discuss the Theory of Absolute Advantage and Ricardo’s Theory of Comparative Advantage.

Absolute Advantage and

Ricardo’s Theory of Comparative Advantage

 

Answer: Theory of Absolute Advantage

In the late 18th and early 19th centuries, first Adam Smith and subsequently David Ricardo, explored the basis for international trade as part of their efforts tomake a case for free trade. Their

 

 

  1. Discuss in detail Foreign Trade in India since Independence.

Foreign trade in India

 

Answer: Foreign Trade in India since Independence

For the study of trends of India’s foreign trade during post-independence period,it is convenient to divide the entire period into seven phases.

  • 1948-49 to 1950-51— The Eve of Planning: On the eve of planning, theforeign trade of India

 

 

 

 

  1. Explain the Main Features of India’s Foreign Trade Policy

Main Features of India’s Foreign Trade Policy

 

Answer: Main Features of India’s Foreign Trade Policy

Trade encourages the foreign earnings as well as stimulates greater economicactivities. The main objectives of Import-export policy of the Indian Governmenthave been to:

(i) Provide further impetus to exports;

(ii)

 

 

  1. Write short notes on India’s trade with:
  2. Special Economic Zones (SEZ)
  3. Free Trade Warehousing Zones

 

Answer:  a) The SEZ policy was announced in April 2000. The objective was to make theSEZs an engine of economic growth by developing quality infrastructure andoffer attractive fiscal package at the Central and State level with a single windowclearance. All the areas providing a holistic economic development have beenaddressed and the scheme provides for further

 

 

  1. Discuss in detail the various Sectoral Performance of India’s External Sector

Sectoral Performance of India’s External

 

AnswerSectoral Performance

Gems & Jewellery

India’s gems and jewellery industry is a bright star of the economy, and one ofthe important foundations of the country’s export-led growth. The consumptionof gold and jewellery products in India has grown rapidly over the years at therate of 10-15 per cent per annum and today, the

 

 

  1. What are PTA and FTA? Identify the key difference between the two.

PTA meaning

FTA Meaning

Key difference

 

Answer: PTA (Preferential Trade Agreement): A preferential trade area (also preferential trade agreement, PTA) is a trading bloc that gives preferential access to certain products from the participating countries. This is done by reducing tariffs but not by abolishing them completely. A PTA