Correct Answer:
(B) Dismantling barriers in international trade
Globalization is the word used to describe the growing interdependence of the world’s economies, culture, and population, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information. The process of globalization generally refers to increasing free trade between countries and dismantling barriers in international trade.
Ques: 2
Globalization of Indian Economy means :
Correct Answer:
(C) Having minimum possible restrictions on economic relations with other countries.
Globalization generally means integrating economy of our nation with the world economy through trade, foreign direct investment, capital flows, migration, and the spread of technology. It refers to the free movement of people, goods, services and capital across boundaries. Hence, among the given options, globalization of Indian economy means having minimum possible restrictions on economic relations with other countries.
Ques: 3
Assertion (A) : The new EXIM policy is liberal, market-oriented and favours global trade.
Reason (R) : GATT has played a significant role in the liberalization of the economy.
Correct Answer:
(B) Both A and R are individually true, but R is not the correct explanation of A
The EXIM Policy 2002-07 was more liberal, market-oriented and favourable to global trade than the previous trade policies. General Agreement on Trade and Tariff (GATT) and subsequently the World Trade Organization (WTO) came to existence and has played a significant role in the liberalization of the economy. Hence both statement and reason are correct but reason is not the correct explanation of statement.
Ques: 4
Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R).
Assertion (A) : An important policy instrument of economic liberalization is reduction in import duties on capital goods.
Reason (R) : Reduction in import duties would help the local entrepreneurs to improve technology to face the global markets.
In the context of the above two statements, which one of the following is correct?
Correct Answer:
(A) Both A and R are true and R is the correct explanation
Liberalization is the process of elimination of the control of the State over economic activities. It provides greater autonomy to the business in decision making and eliminates interference of the government. After India adopted new economic policy in 1991, there has been a drastic change in the economy. An important policy instrument of economic liberalization is the reduction in import duty on capital goods, which makes free flow of capital. Reduction in import duties on capital goods would help the local entrepreneurs to improve technology to face the global markets. Hence, both statements are correct and explain one of the instruments to liberalize the Indian economy.
Ques: 5
Consider the following statements about the recent Foreign Trade Policy :
It’s major objective is to double the India's share of global merchandise trade by the end-year of the policy.
It emphasizes on economic development and not on employment generation.
Which of the above given statements is/are correct?