MCQ
upsc-p1-economy-international-trade-wto MCQ - Practice Questions with Answers
Solve 8 upsc-p1-economy-international-trade-wto questions for RAS/RPSC preparation.
Practice questions
Q1Match List I with List II: List I (Institution) A. Directorate General of Foreign Trade B. CBIC and customs field formations C. Directorate General of Trade Remedies D. Board of Trade List II (Function) 1. Apex advisory platform for Foreign Trade Policy-related measures 2. Administration of Foreign Trade Policy and importer-exporter code 3. Classification of goods and assessment of customs duties 4. Investigation of dumping, subsidised imports and import surges Select the correct answer using the code given below.
The correct matching is A-2, B-3, C-4 and D-1, shown in option D. The Directorate General of Foreign Trade administers trade policy; customs formations classify goods and assess duties; the Directorate General of Trade Remedies investigates cases for trade remedies; and the Board of Trade is an apex advisory platform.
Q2With reference to the World Trade Organization, consider the following statements: 1. Most-Favoured-Nation treatment generally requires a trade advantage given to one member to be extended to all WTO members. 2. National treatment applies to imported goods after they have entered the domestic market. 3. WTO decisions are normally taken through weighted voting based on each member's share in world trade. Which of the statements given above are correct? Select the correct answer using the code given below.
Statements 1 and 2 are correct descriptions of Most-Favoured-Nation treatment and national treatment. Statement 3 is incorrect: the WTO normally works by consensus, not by trade-share-weighted voting. Consensus gives developing countries a voice but can slow rule-making.
Q3With reference to trade remedies, consider the following statements: 1. Anti-dumping duty responds to dumped imports causing injury. 2. Countervailing duty offsets subsidised imports causing injury. 3. A safeguard measure requires proof of an unfair trade practice before temporary relief can be granted. Which of the statements given above are correct? Select the correct answer using the code given below.
Statements 1 and 2 are correct. Anti-dumping duty addresses dumped imports causing injury, while countervailing duty addresses subsidised imports causing injury. Statement 3 is incorrect because a safeguard measure can provide temporary relief from an import surge without proof of an unfair trade practice.
Q4Consider the following statements: Statement I: Rules of origin prevent goods from a non-party country from obtaining an FTA's preferential tariff merely through the lowest-tariff partner. Statement II: Firms may fail to use an FTA preference if they do not understand tariff lines, documentation, origin certificates and partner-country standards. Which one of the following is correct in respect of the above statements?
Both statements are correct, but they address different FTA problems. Statement I describes the anti-circumvention purpose of rules of origin. Statement II describes the utilisation problem: an available tariff preference may produce little export gain when firms cannot meet or document the required conditions.
Q5With reference to the WTO Agreement on Agriculture, consider the following statements: 1. Market access, domestic support and export competition are its three pillars. 2. Amber box support is regarded as minimally trade-distorting. 3. Blue box support is linked to production-limiting programmes. Which of the statements given above are correct? Select the correct answer using the code given below.
Statements 1 and 3 are correct. The Agreement on Agriculture is organised around market access, domestic support and export competition, and blue box support is tied to production-limiting programmes. Statement 2 is incorrect because green box support, not amber box support, is treated as minimally trade-distorting; amber box support is more trade-distorting and subject to limits.
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6Consider the following statements: Statement I: A WTO member's applied tariff on a tariff line can be lower than its bound tariff. Statement II: A bound tariff is the maximum rate the member has committed not to exceed, whereas the applied tariff is the duty actually charged at the border. Which one of the following is correct in respect of the above statements?
7Match List I with List II: List I (WTO rule area) A. Agreement on Agriculture B. GATS C. TRIPS D. SPS measures List II (Principal subject) 1. Sector-by-sector and mode-by-mode services commitments 2. Food safety and animal or plant health 3. Market access, domestic support and export competition 4. Intellectual property Select the correct answer using the code given below.
8Arrange the following stages of a WTO dispute in their usual sequence: 1. Establishment of a panel when consultations do not resolve the dispute 2. Consultations between the disputing members 3. Authorisation of retaliation when compliance fails 4. Adoption of the panel report by the Dispute Settlement Body Select the correct answer using the code given below.