External Sector & Foreign Trade

31 Questions
  1. 1
    Which of the following is/are the most significant implication(s) of obtaining Oeko-Tex certification for Eri Silk in the global textile industry?
    1. It allows Indian exporters to compete in high-end markets that prioritise chemical-free products.
    2. It confirms that Eri Silk meets international safety, environmental, and quality standards, enabling its entry into premium eco-conscious markets.
    Select the answer using the code given below :
    UPSC CSE I - 2026
  2. 2
    Consider the following statements :
    1. Vietnam has been one of the fastest growing economies in the world in the recent years.
    2. Vietnam is led by a multi-party political system.
    3. Vietnam's economic growth is linked to its integration with global supply chains and focus on exports.
    4. For a long time Vietnam's low labour costs and stable exchange rates have attracted global manufacturers.
    5. Vietnam has the most productive e-service sector in the Indo-Pacific region.
    Which of the statements given above are correct ?
    UPSC CSE I - 2022
  3. 3
    With reference to the Indian economy, consider the following statements :
    1. An increase in Nominal Effective Exchange Rate (NEER) indicates the appreciation of rupee.
    2. An increase in the Real Effective Exchange Rate (REER) indicates an improvement in trade competitiveness.
    3. An increasing trend in domestic inflation relative to inflation in other countries is likely to cause an increasing divergence between NEER and REER.
    Which of the above statements are correct ?
    UPSC CSE I - 2022
  4. 4
    Consider the following statements:
    1. Tight monetary policy of US Federal Reserve could lead to capital flight.
    2. Capital flight may increase the interest cost of firms with existing External Commercial Borrowings (ECBs).
    3. Devaluation of domestic currency decreases the currency risk associated with ECBs.
    Which of the statements given above are correct?
    UPSC CSE I - 2022
  5. 5
    Consider the following:
    1. Foreign currency convertible bonds
    2. Foreign institutional investment with certain conditions
    3. Global depository receipts
    4. Non-resident external deposits
    Which of the above can be included in Foreign Direct Investments?
    UPSC CSE I - 2021
  6. 6
    Consider the following statements: The effect of devaluation of a currency is that it necessarily
    1. improves the competitiveness of the domestic exports in the foreign markets
    2. increases the foreign value of domestic currency
    3. improves the trade balance
    Which of the above statements is/are correct?
    UPSC CSE I - 2021
  7. 7

    With reference to Foreign Direct Investment in India, which one of the following is considered its major characteristic?

    UPSC CSE I - 2020
  8. 8
    In the context of India, which of the following factors is/are contributor/contributors to reducing the risk of a currency crisis?
    1. The foreign currency earnings of India's IT sector
    2. Increasing the government expenditure
    3. Remittances from Indians abroad
    Select the correct answer using the code given below.
    UPSC CSE I - 2019
  9. 9
    What is the importance of developing Chabahar Port by India ?
    UPSC CSE I - 2017
  10. 10
    Convertibility of rupee implies
    UPSC CSE I - 2015
  11. 11
    With reference to Balance of Payments, which of the following constitutes/constitute the Current Account?
    1. Balance of trade
    2. Foreign assets
    3. Balance of invisibles
    4. Special Drawing Rights
    Select the correct answer using the code given below.
    UPSC CSE I - 2014
  12. 12
    Which of the following constitute Capital Account?
    1. Foreign Loans
    2. Foreign Direct Investment
    3. Private Remittances
    4. Portfolio Investment
    Select the correct answer using the codes given below.
    UPSC CSE I - 2013
  13. 13
    Which one of the following groups of items is included in India's foreign-exchange reserves?
    UPSC CSE I - 2013
  14. 14
    The balance of payments of a country is a systematic record of
    UPSC CSE I - 2013
  15. 15
    Which of the following would include Foreign Direct Investment in India?
    1. Subsidiaries of foreign companies in India
    2. Majority foreign equity holding in Indian companies
    3. Companies exclusively financed by foreign companies
    4. Portfolio investment
    Select the correct answer using the codes given below:
    UPSC CSE I - 2012
  16. 16
    Consider the following statements:
    1. The price of any currency in international market is decided by the
    2. World Bank
    3. demand for goods/services provided by the country concerned
    4. stability of the government of the concerned country
    5. economic potential of the country in question
    Which of the statements given above are correct?
    UPSC CSE I - 2012
  17. 17
    Both Foreign Direct Investment (FDI) and Foreign Institutional Investor (FII) are related to investment in a country. Which one of the following statements best represents an important difference between the two ?
    UPSC CSE I - 2011
  18. 18
    In terms of economy, the visit by foreign nationals to witness the XIX Common Wealth Games in India amounted to
    UPSC CSE I - 2011
  19. 19
    Consider the following actions which the Government can take :
    1. Devaluing the domestic currency.
    2. Reduction in the export subsidy.
    3. Adopting suitable policies which attract greater FDI and more funds from FIIs.
    Which of the above action/actions can help in reducing the current account deficit ?
    UPSC CSE I - 2011
  20. 20

    The SEZ Act, 2005 which came into effect in February 2006 has certain objectives. In this context, consider the following:

    1. Development of infrastructure facilities.
    2. Promotion of investment from foreign sources.
    3. Promotion of exports of services only.

    Which of the above are the objectives of this Act?

    UPSC CSE I - 2010
  21. 21

    A great deal of Foreign Direct Investment (FDI) to India comes from Mauritius than from many major and mature economies like UK and France. Why?

    UPSC CSE I - 2010
  22. 22

    Assertion (A): Balance of Payments (BoP) represents a better picture of a country's economic transactions with the rest of the world than the Balance of Trade (BoT).
    Reason (R): BoP takes into account the exchange of both visible and invisible items whereas BoT does not.

    UPSC CSE I - 2006
  23. 23

    Consider the following statements. Full convertibility of the rupee may mean:

    1. Its free float with international currencies
    2. Its direct exchange with any other international currency at any prescribed place inside and outside the country
    3. It acts just like any other international currency

    Which of these statements are correct?

    UPSC CSE I - 2003
  24. 24

    Global capital flows to developing countries increased significantly during the nineties. In view of the East Asian financial crisis and Latin American experience, which type of inflow is good for the host country?

    UPSC CSE I - 2002
  25. 25
    Assertion (A):

    Ceiling on foreign exchange for a host of current account transaction heads was lowered in the year 2000.
    Reason (R): There was a fall in foreign currency assets also.

    UPSC CSE I - 2001
  26. 26

    Consider the following statements: The Indian rupee is fully convertible

    1. in respect of Current Account of Balance of Payment.
    2. in respect of Capital Account of Balance of Payment.
    3. into gold.

    Which of these statements is/are correct?

    UPSC CSE I - 2000
  27. 27

    Assertion (A): Devaluation of a currency may promote export.
    Reason (R): Price of the country's products in the international market may fall due to devaluation.

    UPSC CSE I - 1999
  28. 28

    Consider the following statements:

    The price of any currency in the international market is decided by the:

    1. World Bank
    2. Demand for goods/services provided by the country concerned
    3. Stability of the government of the concerned country
    4. Economic potential of the country in question
    UPSC CSE I - 1998
  29. 29

    The Capital Account Convertibility of the Indian Rupee implies:

    UPSC CSE I - 1998
  30. 30

    Hawala transactions relate to payments:

    UPSC CSE I - 1996
  31. 31

    One of the important goals of the economic liberalisation policy is to achieve full convertibility of the Indian rupee. This is being advocated because:

    UPSC CSE I - 1996