MCQ
upsc-p1-economy-international-trade-wto MCQ - Practice Questions with Answers
Solve 10 upsc-p1-economy-international-trade-wto questions for RAS/RPSC preparation.
Practice questions
Q1Match 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.
The correct matching is A-3, B-1, C-4 and D-2, shown in option C. The Agreement on Agriculture covers market access, domestic support and export competition; GATS governs services commitments; TRIPS governs intellectual property; and SPS measures concern food safety and animal or plant health.
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.
Q3Consider 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.
Q4Consider 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?
Both statements are correct, and Statement II explains Statement I. The bound tariff is a legal ceiling, while the applied tariff is the actual rate. Therefore, a member can charge a lower applied rate and adjust it while remaining within the bound ceiling.
Q5Arrange 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.
The usual sequence is 2-1-4-3, shown in option B. A dispute begins with consultations; if unresolved, a panel is established; its report is adopted by the Dispute Settlement Body under the applicable adoption rules; and retaliation may be authorised if compliance fails.
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6With 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.
7With 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.
8With reference to the constitutional and statutory basis of India's foreign trade, consider the following statements: 1. Union List Entry 83 covers customs duties, including export duties. 2. Article 73 extends Union executive power to matters on which Parliament can legislate. 3. Section 6 of the Foreign Trade (Development and Regulation) Act, 1992 relates to the appointment and functions of the Director General of Foreign Trade. 4. Article 301 is the constitutional provision that empowers Parliament to implement international agreements. Which of the statements given above are correct? Select the correct answer using the code given below.
9Arrange the following Indian trade agreements in chronological order of their signing, from earliest to latest: 1. India-Australia Economic Cooperation and Trade Agreement 2. India-European Free Trade Association Trade and Economic Partnership Agreement 3. India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement 4. India-United Arab Emirates Comprehensive Economic Partnership Agreement Select the correct answer using the code given below.
10Match 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.