Foreign Trade and Balance of Payments MCQ — 89 Practice Questions with Answers

Q1. With reference to selected provisions of Foreign Trade Policy 2023, consider the following statements: 1. Merchanting trade may involve shipment of goods from one foreign country to another without touching Indian ports, with an Indian intermediary. 2. All goods may be exported without restriction even if regulated by ITC(HS) or another provision of FTP. 3. Exports of bona fide trade and technical samples of freely exportable items are allowed without any limit. Which of the statements given above are correct?

Q2. With reference to India's trade-facilitation framework under FTP 2023, consider the following statements: 1. India ratified the WTO Trade Facilitation Agreement in April 2016. 2. The National Committee on Trade Facilitation was constituted to facilitate coordination and implementation of TFA provisions. 3. The four pillars of TFA listed in FTP 2023 exclude technology. Which of the statements given above are correct?

Q3. With reference to e-commerce export infrastructure in FTP 2023, consider the following statements: 1. E-Commerce Export Hubs may provide storage, packaging, labelling, certification and testing facilities. 2. E-Commerce Export Hubs must be set up only by the Central Government. 3. Dak Ghar Niryat Kendras are intended to facilitate cross-border e-commerce through a hub-and-spoke model with Foreign Post Offices. 4. SCOMET and restricted goods can never be handled at E-Commerce Export Hubs under any condition. Which of the statements given above are correct?

Q4. With reference to merchandise trade data in India's BoP compilation, consider the following statements: 1. Provisional total export and import data are released by the Ministry of Commerce and Industry through press releases. 2. Such provisional data are released with a lag of about six months. 3. Export data on customs basis, i.e. FOB basis, are used for BoP compilation with valuation adjustment. 4. Banking-channel data reported by authorised dealers are used to compile India's BoP imports. Which of the statements given above are correct?

Q5. Consider the following statements: 1. Under FEMA, a current account transaction is a transaction other than a capital account transaction. 2. Payments due in connection with foreign trade are examples of current account transactions. 3. Persons resident in India require prior permission for every current account transaction, without exception. 4. Remittance out of lottery winnings is an example of a freely permitted current account transaction. Which of the statements given above are correct?