EGMC

Ques1. The computing technology, the internet was a product of military research, the first
network dating from

Ans. 1969

Ques2. What is vitually a joint float system cooperatively arranged by a group of nations sharing
some common interests and goals

Ans. Target Zone Arrangement

Ques3. _______ Promotes exchange stability and maintain orderly exchange arrangements
among members.

Ans. IMF

Ques4. ‘Privatisation’ implies

A) Access to the resources of Public Sector Enterprise

B) Promotion of role of MNCs in the economy
C) A change in the ownership resulting and promotion of collective ownership
D) A change in the ownership resulting in a change in the management (ans bcz may of
may be this statement is possible)

Ques5. Which of the following are the 17 new Sustainable Development Goals?

A) Conserve and Sustainably use the ocean, seas and marine resources
B) Reduce inequality within and among countries
C) Take urgent action to combat climate change and its impacts
D) All of these (answer all)

Ques6. The present WTO system is based on the

Ans. Uruguay Round Agreements

Ques7. Which of the following measures can be applied for controlling erosion and restoring
the productivity of eroded lands?

A) To regulate over-grazing and shifting cultivation practices

B) Efforts to prevent gully erosion and control their formation
C) To disseminate education among people with regard to the positive benefits……………………
D) All of these (answer)

Ques8. National Air Quality Index (AQI) was launched in

Ans. 2015

Ques9. Which of the following economists developed the concept of Human Development?

Ans. Mahbub-ul-haq

Ques10. Which of the following is not the sailent features of the draft national water policy?

Ans. C) Per Capita annual water availability reduced from 1.816m3 in 2001 to 1.544m3 in 2011

Ques11. Which of the below is an example of internal factor of business environment?

Ans. Human Resource

Ques12. The genesis of IT revolution began just after

Ans. Second World War

Ques13. Which of the following industry/industries is/are exclusively reserved for public sector?

A) Atomic Energy
B) Railway Transport
C) Both atomic energy and railway transport ( possible answer )
 D) Defence Equipment, Atomic energy and Railway Transport

Ques14. Industrial licensing constituted the key element in Government of india’s industrial
policy from

Ans. 1951 to 1991

Ques15. Privatisation can be achieved by

A) Both Franchising and Leasing (possible answer)

B) Leasing
C) Franchising
D) Cross Holding

Ques16. Among the following options which is not the objective of the WTO?

Ans. To provide aid during the Balancing of Payment crises of the member countries

Ques17. Laissez Faire policy is adopted in

Ans. Socialist Economic system

Ques18. What is the main objective of human development?

Ans. To enlarge people’s choices and empower them

Ques19. _________ is called as economic constitution of india. It for the first time gave a
broad and detailed framework of industrial development in india.

Ans. Industrial Policy Resolution 1956

Ques20. _______ was replaced by _______ on 1st jan 1995?

Ans. GATT, WTO

Ques21. Which of the following was an extension of the Industrial Policy Resolution of
1956?

Ans. Industrial Policy Statement 1973

Ques22. Which program was introduced in 2013 to address the fluctuations/variability in

the renewable power supply?

Ans. National Green Corridor

Ques23. Section B of Industrial Policy of 1956 comprised of _________ industries.

Ans. 12

Ques24. The ________ maintains record of public and private international Investments
flowing in and out of a country.

Ans. Capital Account

Ques25. Both foreign direct investment (FDI) and foreign institutional investment (FII) are
related to investment in a country. Which of the following is incorrect regarding FDI and FII?

Ans. FII invests in technology-oriented enterprises, whereas FDI invests in traditional

business set ups

Ques26. Economic Liberalization in India led to

Ans. An Increase in economic growth and foreign exchange reserves

Ques27. Which of the following comprises of technical assistance by IMF

Ans. All of these ( designing, drafting, institution and capacity)

Ques28. Balance of Payments comprises of

Ans. Current account, Capital account and Official Settlements Account

Ques29. WTO negotiations produced general rules that apply to ______ and specific
commitments made by the ________ governments.

Ans. All members, individual member

Ques30. The Most Favoured Nation (MFN) clause under the WTO regime is baswd on the
principle of

Ans. Non-discrimination between nations

Ques31. The Industrial Policy Statement of 1956 comprises of

Ans. Classification of industries into three categories

Ques32. What are the two most important aspects of economic globalization?

Ans. Reduction in Import tariffs and internationalization of financial transactions

Ques33. ______ assists in the reconstruction and development of territories of the

members by facilitating the investment of capital for productive purposes.

Ans. World Bank

Ques34. Patents are often referred to as a type of _______ and patent activity is an
indicator of levels of _______.

Ans. “industrial” property, innovation

Ques35. The computing technology , the internet was a product of military research, the
first network dating from

Ans. 1969

Ques36. The Human Development Index is developed by

Ans. United Nations Development Programme

Ques37. As a part of the liberalization announced in 1991, Industrial policy measures were
initiated by the government to liberalise the

Ans. MRTP regulations

Ques38. Indian rupee was devalued in 1991 to resolve the

Ans. Balance of Payments crises

Ques39. When a country has trade deficit it means that it

Ans. Purchases more goods from the rest of the world than it sells

Ques40. The major objective(s) of Public Sector Enterprises is/are

Ans. All of these

Ques41. The objective of privatisation are to

Ans. All of these

Ques42. The International product life-cycle model, was put forward by

Ans. Raymond Vernon

Ques43. A new approach to the public sector was visualized in the Industrial Policy Resolution
of

Ans. 1991

Ques44. Which of the following is not a key area of Human Development?

Ans. Access to lead a luxurious life

Ques45. ________ agreements are legally binding on the members.

Ans. WTO

Ques46. Balance of Payment deficit can be removed through?

Ans. All of these ( devaluation, export, import)

Ques47. TRIPS (Trade-Related Aspects of Intellectual Property Rights) agreement is

administered by:

Ans. World Trade Organization (WTO)

Ques48. External Micro environment of business comprises of

Ans. Competitors

Ques49. The World Wide Web was developed in the late 1980s by

Ans. Tim burners-Lee

Ques50. In which of the following industries there is a prevalence of industrial licensing?

Ans. All of these( alcohol, cigarettes, explosives)

Ques51. The 1950s saw the commercial development of mainframe computers, spearheaded
by?

Ans. IBM

Ques52. Economic growth is a subset of _________ model.

Ans. Human Development Model

Ques53. Objective(s) of disinvestment programme in india is to

Ans. Achieve efficiency of enterprise and provide fiscal support

Ques54. Measures to globalise Indian economy include

A) Removal of quantitive restrictions

B) Reduction of import tariffs
C) Removal of export duties
D) All of these ( possible answer)

Ques55. The main objective of the Industrial Policy Statement of 1991 was

Ans. Industrialization of the economy

Ques56. Anti-globalists believe that MNCs

Ans. Exploit the labour employed by them in different parts of the world

Ques57. Unilateral transfers of balance of payments comprises of

Ans. All of these (possible answer – as one way transfers)

 EGMC002

1. What are the modes of entry into foreign market

Ans. EXPORTING, LICENSING, FRANCHISING, ALL OF THESE

2. External macroenvironment of business includes the

Ans. Global environment

3. Which one of the following is the factor of macroenvironment?

Ans. Economic , legal , social ---------------ALL OF THESE

4. Transfer of ____ percent or more equity of a public sector undertaking to private sector is called privatization.

Ans. 51

5. Transfer of ownership of a public sector undertaking to private sector wholly or partly is called as

Ans. Privatization

6. Balance of private capital transactions, official capital transaction, direct investment & portfolio investments
of a country with the rest of the world is show in the _____ of balance of payments.

Ans. Capital account

7. In life cycle model foreign production of a product begins at which stage?

Ans. Maturity

8. The 1991 industrial policy resolution

Ans. Abolish licenses for all industries except in 18 industries

9. The 1991 Industrial police resolution

Ans. Assigned a greater role to the private sector of the economy

10. Current account of Balance of payment will NOT include:

Ans. D) NRI deposits and joint ventures

11. Constructions service will be recorded under

Ans. Service account of BOP

12. Cross holding is a method of

Ans. Disinvestment

13. In a ______ economy private ownership of factors of production is not allowed

Ans. Socialist

14. Grants given by government of India to south Africa and Bangladesh will be recorded in

Ans. Current account of BOP

15. The world bank group consists of

Ans. Four institutions (IBRD, IDA, IFC,MIGA)

16. Official transaction of capital account of balance of payments show:

Ans. Transaction affecting assets and liabilities by individual, businesses and non government entities

17. FDI in India can lead to :

Ans. Improvement in quality of product

18. Joint venture between company XYZ of India and company ABC of Japan will be recorded in

Ans. Capital account of balance of payment

19. Currently how many industries are exclusively reserved for public sector

Ans. 2
20. Champagne tequila or Roquefort are examples of

Ans. Geographical indicators

21. What do you mean by Foreign direct investment?

Ans. Investment made by a company in another country

22. In 2001, the agriculture negotiations were brought into the Doha Round of talks with the objective to reduce
distortion in agricultural trade caused by

Ans. All of these (high tariffs and other barriers, export subsidies, some kinds of domestic support)

23. India has achieved

Ans. Current account convertibility

24. Which one of the following statement is NOT true

Ans. The WTO covers the direct taxation policies of member nations within its agreement

25. What does liberalisation aimed at?

Ans. Economic reforms

26. On a rapidly globalizing world, management of technology has assumed increasing importance due to which
of the following reason?

Ans. Technology is a major source of global competitive advantage

27. Marketing Intermediaries and suppliers are a part of

Ans. External microenvironment of business

28. Current account of balance of payment will NOT include income from:

Ans. A) Financial services

B) software services

C) Business services
 D) NRI deposits.

29. Which one of the following is a feature of Globalisation?

Ans. All of these (Operating and Planning to expand businesses, erasing domestic and foreign market difference,
buying and selling goods and services from to any country in the world)

30. Current account of balance of payments will include income from abroad from.

Ans. All of these (finance, software and business)

31. Intellectual property rights include

Ans. Both inventions (protected by patents) and industrial design and trade secrets.

32. Intellectual property rights include

Ans. Distinctive signs in particular trademarks and geographical indications

33. Intellectual property rights are customarily divided into

Ans. both copyrights and industrial property

34. The only international organization dealing with the rules of trade in goods, services, intellectual property and
investment between nations is

Ans. World trade organization (WTO)

35. Acquisition made by a company M/s ABC of India in Australia will be recorded as

Ans. Capital account of Balance of payment

36. Under ______ there is a partial sale of equity if a public enterprise to a private party.

Ans. Denationalisation

37. The industrial policy resolution statement 1980 focused on the need to promote.

Ans. All of these(competition in the domestic market, technology up gradation, modernization)

38. The Public sector enterprises in India are categorized as

Ans. Mini ratna, Navratna and Maharatna

39. Which one of the following was the aim behind the formation of the world Trade Organization (WTO)?

Ans. All of these (Free trade/intellectual property/trade among nations)

40. The investment in productive assets and participation in management as stakeholders in business enterprise
is?

Ans. Foreign Direct Investment (FDI)

41. Balance of exports and imports of goods and services and unilateral transfer is shown in the _______ of
balance of payment.

Ans. Current account

42. Which one of the following is most required to empower people

Ans. Good governance and people oriented policies

43. WTO aimed to reduce

Ans. Both production and consumption distortion created by tariffs.

44. The ______ offers support to developing countries through policy advice, research and analysis and technical
assistance.

Ans. World bank Group

45. The 1991 industrial policy resolution abolished license for all industries except _______ industries.

Ans. 18

46. National Account that shows the net change in asset ownership for a nation is called as?

Ans. Capital Account

47. Deficit in Balance of payment does not occur due to:

Ans. Deflation in the economy

48. Deficit in Balance of Payment is due to

Ans. Large scale imports by a country compared to export

49. The 1956 Industrial Policy Resolution

Ans. Aims to achieve socialist pattern of society

50. In a ______ economy decisions of what to produce are taken by a central planning authority.

Ans. Socialist

51. The industrial policy initiatives undertaken by the government since July 1991 have been designed to

Ans. Promote industrialization

52. The aim of the world bank group is

Ans. Eliminate poverty and improve the standard of living of the people by promotion sustainable growth and
investment

53. In a _____ economy allocation of resources is decided partly by the central planning authority and partly by
market mechanism.

Ans. Mixed economy

54. The core responsibility of IMF is to

Ans. A) Provide short term loans to member countries experiencing actual or potential balance of payments crises

55. GATT stands for

Ans. None of these (General agreement for tariffs and trade)

56. Which one of the following indicators is/are used to assess the knowledge?

Ans. adult liberty rate and gross enrolment ratio

57. The goal of ______ is to create and sustain fair competition in the Indian economy that will provide a ‘level
playing field’ to the producers.

Ans. Competition act, 2002

58. The International Monetary Fund (IMF) came into existence on 27 th December 1945 with__________
members countries?

Ans. 29 members

59. In India, liberalization of trade sector does NOT comprise of:

Ans. Achievement of Current account convertibility

60. Which one of the following is/are the main objective of MNC’s

Ans. All of these (to expand business beyond the boundaries of the home country, minimize the cost of production
especially the labour cost, avail the competitive advantage internationally.)

61. The Uruguay round of WTO did not lead to

Ans. Setting of currency exchange rates

62. If you send a gift to your relatives in Germany from India, the transaction will be recorded in

Ans. Current account of Balance of Payment

63. Remittances by diaspora are included under :

Ans. Current account of balance of payments

64. The claim of the members of the Miles group of Bangladesh that core lements of the song ‘ Phiriyedaoamar
prem’ were copied in the soundtrack ‘jana jane jana’ of murder by anu malik and group is an example of

Ans. COPYRIGHT

65. Setting up of subsidiaries by MNC’s in foreign countries will be recorded under

Ans. Capital account

66. Post the abolition of quota system, it was thought that China would walk away from Bangladesh’stextile
business “that did not happen and exports of textile made ups zoomed in 2006, at US$8.9 billionto
__________ in 2010? .

10.3 Billion

10.4

67. Filing of an application by Tea Board of India against registration of “Darjeeling Tea” & “Darjeeling Logo” by
international TEAK KK – A Japanese company, in 2002 comes under?

Ans. TRIPS

68. What is the systematic record of all transactions of a country in a year is referred as?

Ans. Balance of Payment

69. Which of the following combination of a few crucial ‘positives’ and ‘negatives’ reflects the

WTO policies?

Ans. All of these

70. In the long run, the deficit in balance of payments can be adjusted through

Ans. Devaluation

71. Which one of the following statements is not true?

Ans. The WTO covers the direct taxation policies of members countries within its agreement

72. Sales of textiles by Raj Export House to foreign countries will be recorded under

Ans. merchandise account of balance of payment

73. In the pre liberalization era imports of inputs and technology were regulated by to saveforeign exchange

Ans. FERA

74. Privatization implies a change in the ownership resulting into a change in the?

Ans. Management
75. In a --------- economy allocation of resources of the economy is decided by the central planning authority

Ans. Socialist

76. Communication services will be recorded under

Ans. services account of balance of payments

77. The intellectual property protection, in case of patent rights, is usually given for a finitetermtypically of

Ans. 20 years

78. The goal of COMPETITION ACT is to create and sustain fair competition in the Indianeconomy that will provide
a

Ans. level playing field to the producers

79. The WTO agreements are

Ans. negotiated and signed by the bulk of world's trading nations and ratified in their parliaments

80. The goal of International Monetary Fund (IMF) is to

Ans. B). Achieve stabilization of foreign exchange rates and lend money to members countries in financial trouble

81. The concept of mixed economy relates to?

Ans. The coexistence of public and private sector

82. The basic objective of the second Industrial Policy Resolution is?

Ans. All of these (Prevention of private monopolies, Accelerating the rate of economic growth, Maintainance of
industrial peace)

83. In the Doha declaration, WTO member governments commit themselves to the objective of dutyfree, quota-
free market access for LDCs' products
Ans. Least developed countries

84. the 1991 IPR reduced the number of industries reserved for which sector to eight

Ans. Public sector

85. Which one of the following is not a characteristic of business environment?

Ans. Strategy

86. Capital account of balance of payments will not include

Ans. Transfers by a government to embassies

87. Capital account of balance of payments will not include

Ans. Earning of International Transport agencies

88. the core responsibility of the WTO is to

Ans. deal with the rules of trade between nations

89. which one of the following is not a measure of India's liberalization strategy

Ans. New Exchange Rate policy

90. In an _________ economy allocation of resources of the economy is decided by the free marketmechanism

Ans. Capitalist

91. A country can derive foreign exchange reserves to conduct its international business through

Ans. C) exports, investment income & transfer payments received

92. What does liberalization means

Ans. economic reforms

93. In which economy decisions OF WHAT TO PRODUCE OF by the private entrepreneurs

Ans. Capitalist

94. A system in which the central banks of the country buy or sell their currencies in the foreign exchange market
whenever exchange rate deviate from their stated par values is called ________

Ans. Fixed Exchange rate system

95. The core responsibility of the World bank is to

Ans. Provide long term loans to member countries for development purposed such as education, health, and
infrastructure.

96. what was the first economic theory of international trade to be developed

Ans. The theory of mercantilism (mercantilist Theory of trade)

97. the theory of comparative cost advantages is put forward by

Ans. David Ricardo

98. Trip related intellectual property right cover

Ans. Copyright & Patent, trademarks, geographical indications and industrial designs

99. International trade maximizes world output through

Ans. Countries specializing in production of goods they are best suited for

100. public and competitors are a part of

Ans. Microenvironment

101. The gap between desired investment and local mobilized savings is filled by

Ans. Foreign Investment or foreign capital

102. Privatization of the public sector undertakings by selling off part of the equity of

Ans. Public Sector

103. Unions to the public is known as ______________.

Ans. Disinvestment

104. Liberalized Exchange Rate Management System (LERMS) was introduced by the RBI on?---

Ans. March 1992

105. Which one of the following factor of the foreign investment?

ANS. All of these (Political Stability, Legal and regulatory framework, Size of market)

106. Political and legal framework of a country constitute

Ans. External Macroenvironment of Business

107. Which one of the following is an exclusive right to exploit the invention for a right,provide license to
others to use it and stop all unauthorized exploitation of the inventions/innovations?

Ans. Patent Right

108. Trade Related intellectual property rights cover

Ans. Copyright & Patent, Trademarks, Geographical indications and industrial designs.

109. Which one of the following defines the growth of human development?

Ans. Quantitative and value neutral ,,,, change over a period of time,, may be positive or negative
ALL OF THE ABOVE

110. Which one of the following is not a feature of new trade theory?

Ans. Demand For a currency

111. In the _________ Period the Indian government emphasised greater role of foreign investment in
economic development of the country ?

Ans. Post - liberalization

112. Which one of the following is an objective of Industrial Policy Resolution, 1991?
Ans. To Maintain Sustained Growth in productivity and employment

113. The Current Account of balance of payment Includes Trade Balance and?

Ans. Service Balance

114. Joint venture between Government of India & ShinChan Co. Of China will be Recorded in

Ans. Capital Account

115. Globalization has led to the flow of ideas across?

Ans. National Boundaries

116. Which of the following is a part of business environment?

Ans. All of these ( Economic, Ecological, Cultural Factor )

117. Private transactions of Capital Account of balance of payments show

Ans. Transactions affecting assets and liabilities by individuals, businesses and non government entities.

118. Transfer of 49 per cent equity of a Public Sector undertaking to Private Sector is called

Ans. Disinvestment

119. Devaluation of country’s currency leads to

Ans. Both 2 & 3 ( decrease imports and increase exports, decrease balance of payment deficit )

120. Which one of the following factor/s determine the foreign investment?

Ans. All of these (Political stability, Legal regulatory Framework, Size of market)

121. Globalization Refers to?

Ans. Free movement of products, technology, information, and labour across the world
122. In a rapidly Globalizing World , management of technology has assumed increasing importance due to
which of the following reason?

Ans.

A) Technology is a major source of global competitive advantage.

B) A firm’s technological strength comes from its ability to innovate.

C) Time is of vital importance in gaining competitive advantage; it is therefore imperative

that firms decentralize their R&D efforts to accelerate the process of innovation and
adaptation. Choose C

D) None of these (but All A, B, C are correct)

123. The intellectual property protection, in case of patent rights, is usually given for a finite term typically of

Ans. 20 Years

124. In a ______ economy decisions of what to produce are taken both by the central planning authority and
private entrepreneurs.

Ans. Mixed

125. In a ______ economy private ownership of factors of production is allowed

Ans. Capitalist

126. The Uruguay Round Of WTO lead to

Ans. All Of These ( setting of rules for trade in intellectual property, Rules for trade in merchandise, Liberalisation
for trade in service)

127. Some of the projects of _______ are co-financed by the Government, multilateral institutions, commercial
banks, export credit agencies and private sector investers.

Ans. World Bank Group.

Note (Two same ques with different options Both answer is same )

128. Transfers made by Government of USA to its embassy in India will be recorded in

Ans. Current account of balance of payments

129. The claim by the members of the Miles Group of Bangladesh that the core elements of the song ‘Phiriye
Dao Amar Prem’ were copied in the sound track “Jana Jana Jana’ of the movie ‘Murder’ by Anu Malik & Group
is an Example of

Ans. Copyrights

130. The Genesis of IT revolution began just after

Ans. Second World War

131. The Trips Agreement of WTO deals with

Ans. Protection of industrial designs & the layout-design ........ Integrated circuits

132. Economic environment and socio-culture environment in a country constitute

Ans. External Macro Environment of business

133. In Short run, the defecit in balance of payments can be adjusted through

Ans. All of these ( use of foreign balances, sale of gold, sale of securities)

134. Under_________ there is a 100% sale of a public enterprise to a private party.

Ans. Denationalization

135. The ___________ lends to governments of middle – income and creditworthy low – income countries

Ans. International Bank for Reconstruction and Development (IBRD)

136. Income from Investment in the form of Interest and Dividend will be recorded under

Ans. Current account of balance of payments

137. Transfer of up to ______ per cent equity of public sector undertaking to private sector is called
disinvestment

Ans. 49
138. World Trade Organisation was established after negotiations at

Ans. Uruguay

139. The impact of globalization in indian economy has led to

Ans. All of these ( increase in exports, inflow of foreign investment, emergence of Indian MNCs)

140. The 1956 industrial policy resolution gave the _______ strategic role in the economy.

Ans. Public sector

141. One of the following is not a characteristic of business environment.

Ans. Strategy

142. _________ made by Government of USA to its embassy in India will be recorded in

Ans. Current account of balance of payments

143. The short run the deficit in balance of payments can be adjusted through

Ans. All of the above

144. Which of the following combination of a few crucial ‘positives’ and Negatives reflect the WTO policies?

Ans. All of the following

145. Disinvestment means selling of equity of a public enterprises to a

Ans. Private Enterprises

146. Transfer of 51 per cent equity of Delhi Government to bses Ltd and Tata power is called

Ans. Privatization

147. The goal of World Trade Organization (WTO) is to

Ans. Help the producers, exporters and importers to conduct their business
CASE STUDY

1. 10.3 billion

2. Knitwear(B)

3. Both low wages and supportive industry©

4. Duty free access has been granted to Bangladesh for Knitwear imports by USA