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Q1

Consider the following statements:

1. The Standard International Trade Classification is issued and regulated by the World Trade Organization.

2. The Standard International Trade Classification is applied to compile international trade statistics.

Which of the statements given above is/are correct?

Q2

For a given country, a higher level of participation in Global Value Chains implies

Q3

With reference to economic activities, the term 'network products', implies

Q4

With reference to economic activities, the term 'network products', implies

Q5

Which one of the following is a proposed agreement between the member states of the Association of Southeast Asian Nations (ASEAN) and its free trade agreement (FTA) partners?

Q6

Which of the following countries are members of MERCOSUR?

1. Brazil

2. Mexico

3. Argentina

4. Brazil

Select the correct answer using the code given below:

Q7

With reference to the 'Centre for Fourth Industrial Revolution', recently in the news, consider the following statements:

2. It has been set up by the Global Public Policy Institute (GPPi) and the Government of India. 

1. It will facilitate to bring together government and business leaders to pilot emerging technology policies.

Which of the statements given above is/are correct?

Q8

With reference to the Asia-Pacific Trade Agreement (APTA)' consider the following statements:

1. It was the oldest preferential trade agreement among developing countries in Asia-Pacific.

2. It is an initiative of the United Nations Economic and Social Commission for Asia and the Pacific.

Which of the statements given above is/are correct?

Q1.

Consider the following statements:

1. The Standard International Trade Classification is issued and regulated by the World Trade Organization.

2. The Standard International Trade Classification is applied to compile international trade statistics.

Which of the statements given above is/are correct?

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Solution : b)
Unattempted. Explanation :-

Statement 1 is incorrect. Standard International Trade Classification, SITC is the classification of international trade issued by the United Nations (UN).

The data complying with the SITC classification are deducted from the Combined Nomenclature CN in accordance with the definitions of the UN. The most detailed SITC classification level contains 2 970 commodity categories.

Statement 2 is correct. The SITC classification is applied to compile international trade statistics owing to its international comparability. This classification maintained by the UN is used in most countries. On the basis of detailed nomenclatures (HS, CN), commodities are classified by SITC into rougher categories e.g. with regard to their degree of processing. Since the SITC classification is not amended annually, it enables comparisons by means of longer time series.

Source)

https://tulli.fi/en/statistics/sitc-goods-classification

https://www.indiabudget.gov.in/economicsurvey/doc/vol1chapter/echap05_vol1.pdf

 

Q2.

For a given country, a higher level of participation in Global Value Chains implies

a) The share of foreign value-added in gross exports is equal to the inputs sourced locally.
b) The share of foreign value-added in gross exports is higher than when most inputs are sourced locally.
c) The share of the final good produced is higher than the export of unprocessed raw materials.
d) The share of foreign value-added in gross exports is lower than when most inputs are sourced globally.
Solution : b)
Unattempted. Explanation :-

A higher level of participation in Global Value Chains implies that, for any given country, the share of foreign value added in gross exports is higher than when most inputs are sourced locally. 

Global value chains provide opportunities for developing countries to diversify their exports and intensify their integration into the global economy.

Developing countries traditionally exported unprocessed raw materials. The leap to exporting manufacture products was complicated because it required a full suite of complementary industries. Today, the rise of global value chains (GVCs) enables developing countries to slot themselves into a part of the production chain without having to produce a complete, final good. As a result, developing countries now mostly export manufacturing value-added.

Source)

https://www.indiabudget.gov.in/economicsurvey/doc/vol1chapter/echap05_vol1.pdf

https://www.brookings.edu/blog/order-from-chaos/2017/07/19/global-value-chains-provide-new-opportunities-to-developing-countries/

 

Q3.

With reference to economic activities, the term 'network products', implies

a) All high capital intensive products.
b) The final goods produced in a country for global export.
c) A group of industries where production processes are globally fragmented.
d) All durable good that is used in the production of goods or services.
Solution : c)
Unattempted. Explanation :-

“Network products” are group of industries, where production processes are globally fragmented and controlled by leading Multi-National Enterprises (MNEs) within their “producer driven” global production networks.  

Examples of network products include computers, electronic and electrical equipment, telecommunication equipment, road vehicles etc. China’s remarkable export performance vis-à-vis India is driven primarily by deliberate specialization at large scale in labour-intensive activities, especially “network products”, where production occurs across global value chains operated by multi-national corporations. 

Source)

https://www.indiabudget.gov.in/economicsurvey/doc/vol1chapter/echap05_vol1.pdf
 

 

Q4.

With reference to economic activities, the term 'network products', implies

a) All high capital intensive products.
b) The final goods produced in a country for global export.
c) A group of industries where production processes are globally fragmented.
d) All durable good that is used in the production of goods or services.
Solution : c)
Unattempted. Explanation :-

“Network products” are group of industries, where production processes are globally fragmented and controlled by leading Multi-National Enterprises (MNEs) within their “producer driven” global production networks.  

Examples of network products include computers, electronic and electrical equipment, telecommunication equipment, road vehicles etc. China’s remarkable export performance vis-à-vis India is driven primarily by deliberate specialization at large scale in labour-intensive activities, especially “network products”, where production occurs across global value chains operated by multi-national corporations. 

Source)

https://www.indiabudget.gov.in/economicsurvey/doc/vol1chapter/echap05_vol1.pdf
 

 

Q5.

Which one of the following is a proposed agreement between the member states of the Association of Southeast Asian Nations (ASEAN) and its free trade agreement (FTA) partners?

a) IORA
b) TPP
c) SAFTA
d) RCEP
Solution : d)
Unattempted. Explanation :-

The Regional Comprehensive Economic Partnership (RCEP) is a proposed agreement between the member states of the Association of Southeast Asian Nations (ASEAN) and its free trade agreement (FTA) partners. The pact aims to cover trade in goods and services, intellectual property, etc.

The Regional Comprehensive Economic Partnership was introduced during the 19th Asean meet held in November 2011. It aims to create an integrated market with 16 countries, making it easier for products and services of each of these countries to be available across this region.

Source) Page number 121

https://www.business-standard.com/about/what-is-rcep

https://www.indiabudget.gov.in/economicsurvey/doc/vol1chapter/echap05_vol1.pdf

 

Q6.

Which of the following countries are members of MERCOSUR?

1. Brazil

2. Mexico

3. Argentina

4. Brazil

Select the correct answer using the code given below:

a) 3 and 4 only
b) 1, 2 and 3 only
c) 1, 3 and 4 only
d) 1, 2, 3 and 4
Solution : c)
Unattempted. Explanation :-

Mercosur is an economic and political bloc comprising Argentina, Brazil, Paraguay, Uruguay, and Venezuela. 

Mexico is not a member of MERCOSUR.

Bolivia, Chile, Colombia, Ecuador, Guyana, Peru and Surinam are associated states of MERCOSUR.

Source)

https://www.mercosur.int/en/about-mercosur/mercosur-countries/

https://www.indiabudget.gov.in/economicsurvey/doc/vol1chapter/echap05_vol1.pdf

 

Q7.

With reference to the 'Centre for Fourth Industrial Revolution', recently in the news, consider the following statements:

2. It has been set up by the Global Public Policy Institute (GPPi) and the Government of India. 

1. It will facilitate to bring together government and business leaders to pilot emerging technology policies.

Which of the statements given above is/are correct?

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Solution : b)
Unattempted. Explanation :-

Statement 1 is incorrect. The World Economic Forum (WEF) has set up its new Centre for the Fourth Industrial Revolution in India. The Centre will be based in Maharashtra. It will be the fourth center in chain-ones as part of WEF's global network along with San Francisco (US), Tokyo (Japan) and Beijing (China) are already functioning. The Indian government, States of Andhra Pradesh and Maharashtra and business leaders to pilot emerging technology policies created at the Centre for the Fourth Industrial Revolution India

Statement 2 is correct. The Centre for the Fourth Industrial Revolution India will work in collaboration with the government on a national level to co-design new policy frameworks and protocols for emerging technology alongside leaders from business, academia, start-ups and international organizations. The National Institute for Transforming India (NITI) Aayog will coordinate the partnership on behalf of the government and the work of the centre among multiple ministries.

Source) 

https://www.weforum.org/press/2018/10/world-economic-forum-opens-centre-for-the-fourth-industrial-revolution-india/

 

Q8.

With reference to the Asia-Pacific Trade Agreement (APTA)' consider the following statements:

1. It was the oldest preferential trade agreement among developing countries in Asia-Pacific.

2. It is an initiative of the United Nations Economic and Social Commission for Asia and the Pacific.

Which of the statements given above is/are correct?

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Solution : c)
Unattempted. Explanation :-

Both the statements are correct. The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) is the regional development arm of the United Nations for the Asia-Pacific region. Made up of 53 Member States and 9 Associate Members. The Asia-Pacific Trade Agreement (APTA), previously named the Bangkok Agreement, was signed in 1975 as an initiative of ESCAP. 

Being the oldest preferential trade agreement among developing countries in Asia-Pacific, APTA aims to promote economic development through the adoption of mutually beneficial trade liberalization measures that will contribute to intra-regional trade expansion and provides for economic integration through coverage of merchandise goods, services, investment and trade facilitation.

Source) 

https://www.unescap.org/apta