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EXIM First 100mcqs - mcq on export procedure and documentation
export import (1723)
University of Lucknow
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MULTIPLE CHOICE QUESTIONS
- The investment
in
productive
assets
and
####### participation
in
management
as
stake
holders
in business enterprises is
a. FDI
b. FII
C. Balance of payment
d. SDR
Answer : a. FDI
2
####### The portfolio investment by foreign institutional investors is called
a.
FDI
b. FII
C.
####### Balance
of
payment
d. SDR
Answer:b. FII
- Consider the following statements and identify the right ones.
a. India adopted LERMS in 1992
####### b. In 1993, dual exchange rate system was replaced by a unified floating exchange rate.
C. both
d. none
Answer: c. both
####### 4. Which of the following is international trade?
####### a. Trade between provinces
####### b. Trade between
regions
C. Trade between countries
d. (b) and (c) of above
Answer:c. Trade between countries
Theory
of
comparative advantage
was
presented
by
a. Adam Smith
####### b. Ricardo
C.
Hicks
####### d. Arshad
Answer:b. Ricardo
If
Japan and
Pakistan
start
####### free
trade,
####### difference in
wages
in two countries
####### will:
a. Increase
####### b. Decrease
.
Multiple Choice Questions
227
C. No effect
d. Double
Answer: b. Decrease
7
####### Trade
between two
countries
can
be
useful
if
cost
####### ratios
of
####### goods are:
a. Equal
####### b. Different
C. Undetermined
####### d. Decreasing
Answer: b. Different
- A tariff is:
a. A
restriction on
the
number
of
export
####### firms
####### b. Limit on
the
amount of
imported
####### goods
C. Tax and
imports
d.
(b)
and
(c)
of
####### above
Answer:
c. Tax and
imports
Underlying
the
application
of the
monopolistic
competition
model to trade is the
idea
####### that trade
a. increases
####### market
size
b.
####### allows
companies
to
charge
higher
####### price
C.
####### increases
consumer
####### choices
d.
decreases
the
####### number of
firms in an
industry
Answer: a) increases market size
Which of the
following
trade
policies
####### limits
specified
quantity
of
goods
to be
####### imported
at
one tariff rate?
a. Quota
b. Import tariff
C. Specific tariff
d.
All of
the
####### above
Answer: a) Quota
. In the 2-factor, 2 good Heckscher-Ohlin model, the two countries differ in
a. Military capabilities
b. labour productivities
relative availabilities of factors of production
d. tastes
####### 12swer: (c) relative availabilities of factors of production
1CC
rding
to
Ricardo,
a country
will
have a
####### comparative
####### advantage
in:
dustries
in which
there are
neither
####### imports
nor
exports
mport competiting industries
####### ndustries
that sell
to
domestic
and
####### foreign
####### buyers
ndustries
that sell
to
only foreign
buyers
SWer: c)
Industries
that sell
to
domestic
and
foreign buyers
ernational
Trade is
most
likely
to
generate
short-term
unemployment
in:
####### 13. Internatio
Lndustries
in
which
there
are
neither
####### imports
nor
exports
mport-competing industries
Multiple Choice Questions
229
19.
During
2016-17,
which of
the
following
items
under
manufacturing
goods
sector
had
the
highest share in (ndia's exports?
a.
Gems
and
Jewellery
b. Engineering goods
C. Chemical and related products
d. Handicrafts
Answer: a) Gems and Jewellery
a
Which
trade
policy
results
in
the
government
levying
both
a
specific
tariff
and
an
ad-
valorem tariff on imported goods:
a. Compound tariff
b. Nominal tariff
Effective tariff
C
d. Revenue tariff
Answer: a. Compound tariff
21.
Concerning
a
government's
trade
policy,
all of
the
following generally
apply
except
a. economic downturn and
recession
generally
result
in
greater
protectionism
b.
because domestic consumers outnumber domestic
producers,
policy
makers
usually
enact
Free-trade
policies
to
satisfy
the consumer
majority
C. when domesticexporting companies are organized, policy tends to favor freer trade
d. policy tends to favor freer trade in countries whose imports are inputs into critical
industries
Answer: b. because domestic consumers outnumber domestic producers, policy
makers usually enact Free-trade policies to satisfy the consumermajority
.The strongest political pressure for a trade policy that results in higher protectionism
comes from:
a.
domestic
workers
lobbying
for
import
restrictions
D. domestic workers lobbying for export restrictions
C
consumers
lobbying
for
export
restrictions
.domestic
consumers
lobbying
for
import
restrictions
Wer:
a. domestic
workers lobbying
for
import
restrictions
P
Its firms penetrate
Mexico's
radio market,
suppose
the
Japanese
government
POVides
them a
subsidy
of $
for
each
radio shipped
to
Mexico.
As a
result
of this
24.
ollowing
World
War II,
the
United
States
and
other
countries sought
to
liberalize
trade
trade policy
An
d.
the
price
of
radios in
Mexico equals
$
and
its imports
equal
40
radios
swer:
b. the
pric
e
price
of
radios in
Mexico equals
$
and
its imports
equal
30
radios
price
of
radios
in
Mexico equals
$
and
its imports
equal 30
radios
C.
the
price
of radios
in
Mexico equals
$
and
its imports
equal
20 radios
a
eneral
reement
on
Tariffs
and
Trade
a.
among
each other. The
first major
postwar
step
toward
trade
liberalization
was
ihe
b.
World
Trade
Organization
C-Hawley anization Policy
d. McKinle Pement on Trade Policy
4Foll
D.
the
price of
radios
in
Mexico
equals
$
and
its imports
equal
30
radios
nentation
Export-Import Procedure and Document
230
####### Answer:
a.
General
Agreement
on
Tariffs and
Trade
The
theory
of
suggests
that government
can
assist
domestic
companies
in
####### capturing
####### economic
profits
from foreign
####### competitors
a. international dumping
b. countervailing duties
####### C. strategic trade policy
####### d. export promotion policy
Answer: c. strategic trade policy
The
####### U.
has
granted
China
permanent
####### most-favored-nation
treatment (normal trade
relations).This
means that the
tariff
####### schedules
which
apply
to U.
imports
####### from
####### China
a. have tariff rates equal to zero, suggesting a free trade policy for the United States
####### b. have lower tariff rates than the rates that apply to any other country sending goods
####### to the United States
C. have tariff rates that are identical to the rates that apply to other countries to which
the U. grants most-favoured-nation treatment
d. have lower tariff rates than the rates that apply to other countries to which the U.
grants Most-favoured-nation treatment
####### Answer: c. have tariff rates that are identical to the rates that apply to other countries
to which the U. grants most-favoured-nation treatment
- WTO agreement came into force fromn
a. January 1, 1994
b. January 1, 1995
C. January 1, 1996
####### d. January 1, 1998
####### Answer: b. January 1,
- What does EPZ stands for?
####### a. Export Production Zone
####### b. Export Promotion Zone
C.
Export
Processing Zone
d. Export Payment Zone
Answer:
c.
Export Processing Zone
####### Which
####### of
the
following
organisations
prepare Human
Development Report?
a. World Bank
b.
International
Monetary Fund
####### (IMF)
C.
United
####### Nations
Organisation
####### (UNO)
d.
United
Nations
Development
Programme
(UNDP)
Answer: (D)
United
Nations
Development
Programme
(UNDP)
Which of
####### the
following.
is not
####### an
important
document in
foreign
trade?
a. a
####### check for
####### the
####### value of
goods
####### b. a draft
c.
####### bill of
lading
####### d. a letter of credit
Answer:a
check
for
####### the
value of
goods
Export-Import Procedure and Documentation
232
Answer: c-for-shipment
Which of
the
following
is
not true of
a letter
of credit?
a. it is a document
b. issued by a bank
C. at the request of the exporter
d. the bank agrees to honor a draft drawn on the importer
Answer: c the request of the exporter
- If a letter of credit can be neither cancelled nor modified without the consent of all
parties, it is known as.
a. revolving
b. irrevocable
C. revocable
d. unconfirmed
Answer: b. irrevocable
- If an exporter is doubtful about an issuing bank's ability to pay, he will expect a
domestic bank to join the transaction in a
a. revolving
b. irrevocable
letter of credit.
C. revocable
d. confirmed
Answer:d. confirmed
- Which of the following may be required as additional documents in a letter of credit?
a. commercial invoice
b. insurance document
C. consular invoice
d. confirmed
Answer:d
- A commercial invoice is issued
by.
a. exporter
b. exporter's bank
C. importer
d. importer's bank
Answer: a. exporter
- A
####### document that
####### contains
a
precise
description
of the
goods
is known as a
a. weight list
b. packing list
C. commercial invoice
d.
####### certificate of
origin
Answer: c invoice
####### Which
of the
following
is not true
of a consular invoice?
a.
provides
customs officials with all
####### information
b.
facilitates
easy
customs
####### clearance
C.
helps
customs
####### officials
assess duties
d. issued
####### by
the
####### consulate of the
exporting country
Multiple Choice Questions
233
Answer:
d
by
the
consulate
of the
exporting
country
45. Which
of the
following
is not
a
form of
offset
agreements?
coproduction
b. licensed production
c. subcontractor production
d. cash in advance
Answer: d in advance
46. Which
of the
following
is
not a
form
of
countertrade?
a.
a. barter
b. consignment
C. switch trading
d. counterpurchase
Answer: b
47.
In
a
countertrade
the
initial
seller
receives
compensation
in
products
that
arise out
of the original sale.
a. consignment
b. barter
C. counterpurchase
d. buy-back agreement
Answer: d-back agreement
48.
Buying
a
company's
accounts receivable
on a
nonrecourse basis is known as
a. switch trading
b. financing
C. factoring
d. funding
Answer: c
49. Which of the following is not necessarily a party to a forfaiting transaction?
exporter
b. importer
a.
C. broker
d. bank
Answer: c
0. Below are five steps involved in a typical trade transaction. Which step is out of order:
a.
exporter agrees
to
ship
under
a letter of
credit
b.
exporter ships
the
product
to the
importer
C. importer's bank issues the letter of credit
d. exporter prepares a 60-day draft on importer in accordance with the letter of credit.
Answer: c.
importer's
bank
issues
the letter of
credit
.
The
"three C's"
of international
commerce
are
a. customers
b. commitment
C.
currency
d. A and B
Answer: d. A and B
Multiple Choice Questions
235
d. Claim rights
####### Answer:
b.
Subrogation
rights
####### The CPT term is
####### similar to
the
####### CIP
term,
except
####### that:
####### a. The seller is
not
required
to
arrange
or
pay
for
####### insurance
coverage
of
goods during
transportation.
####### b. The seller is
required
to
####### arrange
or
pay
####### for
####### insurance
coverage
of
goods during
transportation.
c. The
buyer
is not
required
to
####### arrange
or
pay
for the insurance
####### coverage
of
####### goods
during transportation.
d. The
buyer
is
required
to
####### arrange
or
pay
for the insurance
####### coverage
of
goods during
transportation.
####### Answer:
a. The
seller
is not
required
to
arrange
or
pay
for
####### insurance
####### coverage
of
goods
during transportation.
- Most unsafe mode by which firms perform worldwide business is
a. licensing
b. Franchising
C. InternationalTrade
d.
####### The
establishment
of
new
subsidiaries
Answer:d.
The
establishment
of
####### new
subsidiaries
- If
all prices in one
country
(country A)
are
higher than
all
príces
in
another
country (B)
when compared at the wage rates that happen to prevail in the two countries, and if the
Countries share the same currency, then if the nominal wage rate in country B remains
fixed
a. The nominal wage rate in country A will have to fall.
b.
Unemployment must be higher in country B than in country A.
C. The real wage in country A must be higher than in country B.
d. Workers in country A must be less productive than workers in country B.
Answer: a. The nominal wage rate in country A will have to fal.
- According to the theory of comparative advantage, a country will export a goodonly if
a. It can produce it using less labor than other countries.
####### b. Its productivity is higher in producing the good than the productivity of other
countries in producing it.
C. Its wage rate in producing the good is lower than in other countries.
d. Its cost of producing the good, relative to other goods, is at least as low as in other
####### countries.
Answer: d. Its cost of producing the good, relative to other goods, is at least as low as
in other countries.
- If international trade takes place as a result of comparative advantage, it will cause
which of the
following
effects
in
the
####### participating
countries?
dnequality
among
households
will be
reduced.
D.
All individuals
in each country
will
be
better
off.
C.
####### The average
well-being
of
people
in
both countries will increase.
.Both
countries
will
####### grow
faster
over
####### time.
Answer: c. The average well-being of people in both countries will increase.
Export-Import Procedure and Documentation
236
Whopropounded
the
opportunity
cost Theory
of
international
trade?
a. Ricardo
####### b. Marshall
c.
Heckscher &
Ohlin
d. Haberler
Answer: d. Haberler
Which
####### among
the
####### following
is
####### NOT
correct?
####### a.
Floating
exchange
rate system
works
on
the
market
mechanism
b.
####### Floating
####### exchange
rate
breeds
uncertainties
and speculation
Economic
and
####### political
factors
and
value
####### judgments
influençe
the
choice of the
exchange rate system
d..
The
system
of
floating
####### exchange
rate
####### requires
comprehensive
government
intervention
a.
C.
Answer: d.
The
system
of
####### floating
####### exchange
rate
requires
comprehensive
####### government
####### intervention
- Terms of trade
that relate
to the
Real
Ratio of
international
exchange
between
commodities is called:
a. Real cost terms of trade
b. Commodity terms of trade
C. Income terms of trade
d. Utility terms of trade
Answer: c: Income terms of trade
- Who among the following enunciated the concept of single factoral terms of trade?
a. Jacob Viner
b. G. Donens
C. Täussig
d. J. Mill
Answer: a. Jacob Viner
- Infant industry argument in international rade is given in support of
Granting Protection
b. Free trade
a.
Encouragement to export oriented small and tiny industries
d. None of the above
C.
####### Answer: Granting Protection
- Which of the following is also known as International Bank for Reconstruction ana
Development?
a. Asian
Development Bank
####### b. World Bank
C. Reserve Bank of India
d.
International
Monetary
####### Fund
####### Answer: b. World Bank
- A
change
in
####### fiscal
policy
affects the
balance of
payments
through:
aThe current
account
only
b.
####### The
capital
account
only
Export-Import
####### Procedure
and
238 Documentation
d. None of these
Answer: A. 1948
78
is
the father of
International Law.
a. Suerez
####### b. Oppenhein
C. Hago Grotius
####### d. Both A and B
Answer: C. Hago Grotius
79 of the
following policies
about
exports
and
imports?
a. Fiscal policy
b. Monetary policy
C. Commercial policy
d. Both A and B
Answer: C. Commercial policy
####### 80. Unit in a technology park is not eligible for
exemption trom import duty
bexemption from quantitative restrictions
C exemptions
d. exemptions from registration requirements
Answer:D. exemptions from registration requirements
81. Spécial Economic Zones are
a situated
outside India,
but
subject
to
RBI
control
treated as foreign territory and not Indian laws
####### governed by international and not Indian laws
prohibited from buying from Domestic Tariff Area
a.
d.
Answer: B. treated as
foreign territory
and not Indian laws
82: Duty Drawback is available for
a.
Import duty
on
imported
components
b.
Central excise on
indigenous
components
C.
Import
duty
and central excise
on indigenous
components
C
d.
Import duty,
central
####### excise
and VAT
Answer: C.
Import
duty
and
central excise on
indigenous
components
Export
Promotion
Capital
####### Goods
Scheme
####### allows
import
####### of
capital
goods.
a.
Free of
import duty
b.
####### With
concessional
duty
of 5
####### per
cent with no
export
obligation
C.
With
concessional
duty
####### of
5
####### per
cent with
export
obligation
####### 8
times
the
duty
####### saved
d
concessional
duty
of 5
per
cent with
export
obligation
8
####### times the
import
made
Answer:C.
####### With
concessional
duty
of 5
per
cent
with
export
obligation
8
####### times
the
duty saved
Import
of
capital goods
under
EPCG
####### scheme is
subject
to
a.
####### Terms
and
conditions of
agreement
b.
Conditions of
####### law of
éxporting country
C.
####### Actual
user
condition
d.
Conditions
of law of
importing
country
Multiple Choice Questions
239
Answer:
C.
Actual
user
condition
a
The
export
promotion
scheme
that
enables
the
post
export
replenishment
of
duty
on
inputs used in the export product is.
a. Replenishment licence.
b. Duty remission scheme
c. Duty exemption scheme
d.
Duty
free
replenishment
certificate
Answer:
B.
Duty
remission
scheme
86. The
export
promotion
scheme
with
the
objective
to
neutralize the
incidence of
Customs
duty
on
the
import
content of
the
export
product
is.
a.
Export
Promotion
Capital Goods
b.
Export
Credit
Guarantee
Duty Free Replenishment
d.
Duty
Entitlement
Passbook
Answer: D.
Duty
Entitlement
Passbook
87.
The
licence
that is
transferable is
a. Export licence
b. Advance licence
C. DEPB licence
d. REP licence
C.
Answer: C. DEPB licence
88. The
Imports
and
Exports (Control)
Act
came
into
enforcement from
a. 1947
b. 1950.
C. 1951
d. 1955
Answer: A. 1947
89. The IEC number is issued by the
a. Central Government
b. State Government
C.
Director
General
of
Foreign
trade
d. Ministryof commerce
Answer: C. Director General of Foreign trade
The
IEC
number
is
a number with
a. 7 digits
b. 8 digits
C. 9 digits
d. 10 digits
Answer: D.
10
digits
The Director General of Foreign trade is appointed by
a. Central Government
b. State Government
C.
Ministry
of commerce
Chief justice
of the
Supreme
Court
####### Multiple
Choice
####### Ques
tions
241
- How many chapters are there in The Foreign Trade (Development and Regulation) Act,
1992?
a
5
b. 4
C.
6
d.
7
Answer: C. 6
100 period of time permitted for the fulfilment of the export obligation under EPCG is
a. 5 years
b. 8 yearTs
C. 7 years
d. 10 years
Answer: B. 8 years
- The geographically distributed area or zone where the economic laws are more liberal
as compared to other parts of the country is called
a. EOU
b.
SEZ
C. AEZ
d. FTZ
Answer:B. SEZ
- What does CCIE stand for?
Chief Controller of Imports and Exports
b. Central Cottage Industries Exports
C on Cotton
Imports
and
Exports
d.
a.
Commissioner of Central Imports and Exports
Answer: A. Chief Controller of Imports and Exports
- Bill of Lading is issued by the
a. captain of the vessel
b. shipping company
C. customs authorities
d. consignor
Answer: B. shippingcompany
The
notice
for claim
under
the
####### carriage
of
####### goods
####### by
rail
is to be made
within
a,
3 months
b. 4 months
5 months
d. 6 months
C.
Answer: D. 6 months
- The Warsaw Convention on the International Air transport was announced in
a.
1929
1934
1955
.
C
d. 1972
####### Answer: A. 1929
EXIM First 100mcqs - mcq on export procedure and documentation
Course: export import (1723)
University: University of Lucknow
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