Name of the College : Noorul Islam College of Engineering
University : Anna University
Degree : MBA
Department : Management Studies
Subject Code/Name : BA 1729 – International Trade Finance
Year : 2nd
Semester : 3rd
Document Type : Question Bank
Website : niceindia.com
Download Model/Sample Question Paper : https://www.pdfquestion.in/uploads/niceindia.com/3094-BA1729_-_INTERNATIONAL_TRADE_FINANCE.pdf
NICE International Trade Finance Question Paper
PART – A
1. Define International Trade :
According to Irving Kravis, International trade arises as a result of availability and non availability factors.
Related : Noorul Islam College of Engineering XCS471 Principles of Management M.Sc Question Bank : www.pdfquestion.in/3138.html
2. Write the Benefits of International Trade :
The buying and selling of goods and services across national borders in known as International trade. International trade is the backbone of out modern commercial world.
3. State the theories of International Trade :
1. Comparative cost Theory
2. Opporutnity Cost Theory
3. Hecksher Ohlin Theory
4. Availability Approach
4. What is Availability Approach? :
Availability Approach was proposed by Kravis. The availability approach Purports that a nation would tend to import those commodities which are not readily available domestically and export those to satisfy demand.
5. What is Balance of Trade? :
The BOT denotes the difference between the merchandise exports and merchandise imports of a country.
6. What is Effective Tariff? :
Cordon defines the effective tariff as the percentage increase in value added per unit on an economic activity which is made possible by the tariff structure relative to the situation in the absence of tariffs.
7. What is Optimum Tariff? :
Optimum tariff is the rate of tariff beyond which any further gain from an improvement in the terms of trade will be more than offset by the related decline in volume.
8. Write about WTO :
World Trade organizations deal about the trade activities taken place among various nations.
9. Write briefly on EXIM Policy :
EXIM Policy discuss about the export import policies rules and regulations of the country involved in it.
10. Define Balance of Payment :
Balance of Payment of a country has been defined as a systematic record of all economic transactions between the residents of the reporting country and residents of foreign countries.
11. Give the types of transaction involved in BOP :
1. Autonomous
2. Compensatory transactions
12. What is Exchange Control? :
When tariffs do not help in restoring the balance of payments equilibrium, countries very often resort to exchange control.
13. Define Tariff :
Tariffs in international trade refer to the duties or taxes imposed on internationally traded commodities whey they cross the national borders.
14. What is Trade Barrier? :
Trade Barriers are the obstacles for doing easy trade.
15. Write the components of BOP :
1. Current account
2. Capital Account
3. Unilateral Payments account
4.Official settlements account
16. What is BOP Equilibrium? :
The BOP of a country is said to be in equilibrium when the demand for foreign exchange is exactly equivalent to the supply of it.
17. What is BOP Disequilibrium? :
The BOP is in disequilibrium when there is either a surplus or a deficit in the balance of payments.
18. What is Nominal Tariff? :
Nominal tariff refers to the actual duty on an imported item.
19. Write a brief note on FEMA :
Foreign Exchange management Act gives the clear cut idea of managing the affairs of the foreign exchange
20. What is Bill of Exchange? :
Bill of exchange is a document given by the exporter to the importer showing the amount to be paid and the mode of payment.
PART – B
1. Explain the basis of International Trade.
1. Comparative cost Theory 2. Opporutnity Cost Theory 3. Hecksher Ohlin Theory 4. Availability Approach
2. Explain the factors causing disequilibrium in BOP. 1. Economic Factor 2. Political factor 3. Social factor
3. Give a detailed description of foreign trade and economic growth. Prosperity through exports of manufacturers 2. Staple Export Strategy 3. Import substitution strategy
4. Explain about EXIM policy of India. Policy of Exports and Imports 2. Rules and regulations followed regarding exports and imports
5. Discuss about the measures used for correction in disequilibrium of BOP. 1. Automatic corrections 2. Deliberate Measures, trade measures , Miscellaneous measures
6. Explain in detail about the classification of trade Barriers. Basis of origin and destination of goods- Export Duties, Import Duties, Transit Duties, Quantification of the tariff – Specific Duties, Ad-valorem duties, Compound duties 3. Application between different countries – single column tariff, Double column tariff, triple column tariff
7. Discuss in detail about Quantitative Restrictions. Types of Import Quota – 1. Tariff Quota 2. Unilateral Quota 3. Bilateral Quota 4. Mixing Quota 5. Import Licensing
8. Explain the current trend of foreign trade in India. Recent trends used in foreign trade. Past data and statistics about international trade.
9. Explain in detail about the classification of trade Barriers. Basis of origin and destination of goods- Export Duties, Import Duties, Transit Duties, Quantification of the tariff – Specific Duties, Ad-valorem duties, Compound duties 3. Application between different countries – single column tariff, Double column tariff, triple column tariff
10. Discuss in detail about Quantitative Restrictions. Types of Import Quota – 1. Tariff Quota 2. Unilateral Quota 3. BilateralQuota 4. Mixing Quota 5. Import Licensing