Foreign Trade in Business Environment And International Business : Practice MCQ Questions & Answers with Explanations

2 practice sets · Page 1 of 1

Business Environment And International BusinessMediumInternational BusinessForeign Trade

Consider the following statements regarding India's foreign trade policy:

Statement I: India's foreign trade policy aims to promote exports and manage imports.

Statement II: The Directorate General of Foreign Trade (DGFT) formulates and implements India's foreign trade policy.

Which of the statements given above is/are correct?

Only Statement I

Only Statement II

Both Statement I and Statement II

Neither Statement I nor Statement II

View Answer

Correct Answer: C — Both Statement I and Statement II

Explanation:

The correct answer is C: Both Statement I and Statement II.

India's foreign trade policy is designed to promote exports and regulate imports to strengthen the economy. The DGFT, under the Ministry of Commerce and Industry, is the apex body responsible for formulating and implementing the foreign trade policy in India.

Business Environment And International BusinessEasyInternational BusinessForeign Trade

Which organisation is responsible for regulating international trade between nations?

International Monetary Fund (IMF)

World Trade Organization (WTO)

World Bank

United Nations (UN)

View Answer

Correct Answer: B — World Trade Organization (WTO)

Explanation:

The correct answer is B: World Trade Organization (WTO).

The WTO is the only global international organization dealing with the rules of trade between nations. It aims to ensure that trade flows as smoothly, predictably, and freely as possible. The WTO was established in 1995, replacing the General Agreement on Tariffs and Trade (GATT).