1. 'Most Favoured Nation Clause' under GATT requires

2. Which of the following items may be included in the Current Account part of the Balance of Payments Statements?

1. Merchandise exports.
2. Foreign tourist's expenditure in home country.
3. Foreign Short-term investment in home country.
4. Banking, insurance and transport services.(br>5. Income received on investments abroad.
Select the correct answer using the codes given below:

3. A tariff will not have any effect on revenue if the duty imposed is

4. Assertion (A): Special Drawing Rights (SDRs) have the characteristics of an international currency.
Reason (R): SDRs were introduced to increase international liquidity

5. Dumping aims at flooding a foreign country with

6. Customs union always leads to

7. The automatic borrowing rights of a member of IMF are determined by

8. Which one of the following pairs is correctly matched?

9. Consider the following diagram showing OH and OF as the offer curves of two countries, H and F. The diagram indicates that

10. Consider the following statements: The equivalance between the effects of a tariff and a quota which limits imports by the same amount depends on the assumption that,
1. there are competitive condiditons prevailing abroad.
2. there is perfect competition among quota holders.
3. there is free competition within the domestic import competing industry. Of these statements

11. Dusenberry was of the opinion that less developed countries will have serious and adverse effect on their balance of payments due to

12. Consider the following assumptions :
1. Perfect competition
2. Perfect mobility of factors between countries
3. Constant returns to scale Which of the above assumptions are associated with Ricardo's Theory of Comparative Costs?

13. For the Heckscher-Ohlin theory of trade to be valid, the relative factor endowments of two countries should be

14. Which of the following does not form a part of the foreign exchange reserve of India?

15. Direct control refers to

16. Which one of the following is non-debt flow of capital between countries?

17. The infant industry argument is often advocated in the context of

18. An Optimum tariff

19. Match List-I with List-II and select the correct answer using the codes given below the lists :
List-I List-II (Institution) (Main Objective) (a) IMF 1. To promote viable and durable multilateral trading system. (b) UNCTAD 2. To promote harmony between developed and developing cou ntries o n trade-related developmental issue. (c) World Bank 3. To promote socio-economic development of the member countries. (d) WTO 4. To reduce the degree of balance of payments disequilibrium of the member countries. Codes: (a) (b) (c) (d)

20. Which one of the following pairs is NOT correctly matched?

21. The flexible exchange rate has a number of advantages. Which one of the following is not to be considered as such an advantage?

22. Assertion (A): Devaluation can correct the imbalance in the balance of payment.
Reason (R): Devaluation raises the price of imported goods and reduces the foreign price of exports of the devaluing country.

23. Assertion (A): The Ricardian theory of comparative costs is based on the labour theory of value.
Reason (R): Labour theory of value holds good in domestic trade, but breaks down when applied to international trade.

24. Under which of the following conditions will there be the possibility of trade between two countries whose factor endowments are identical?

25. Which one of the following pairs is not correctly matched?