Regional Trade Agreements MCQ Quiz in मल्याळम - Objective Question with Answer for Regional Trade Agreements - സൗജന്യ PDF ഡൗൺലോഡ് ചെയ്യുക

The correct answer is A - 2, B - 3, C - 1, and D - 4.

Explanation:

Free trade area: This is the basic level of integration where member countries remove trade barriers such as tariffs and quotas on goods traded between them. However, there are no restrictions on the movement of factors of production (labor and capital).
Customs union: This is a step further than a free trade area. In addition to removing trade barriers, member countries also establish a common external tariff against non-members. This means that all member countries charge the same import duties on goods coming from non-member countries.
Common market: This is a more advanced level of integration where there is free movement of goods, services, labor, and capital between member countries. This means that workers and businesses can move freely between member countries, and there are no restrictions on the flow of capital.
Economic union: This is the most advanced stage of integration where member countries share a common currency and have common economic policies. This means that member countries have a common central bank, and they coordinate their fiscal and monetary policies.
Therefore, the given list is matched correctly.

The correct answer is Italy. 

Key Points 

• BREXIT:
  • ​Brexit is an abbreviation of two English words: 'Britain' and 'exit' and refers to the withdrawal process of the United Kingdom (UK) from the European Union (EU). 
  • After Brexit, the EU becomes UK's biggest trading partner, and the UK becomes the EU's third biggest trading partner after the United States and China
  • As of 1 January 2021, relations between the UK and the EU are based on the "Trade and Cooperation Agreement" - an ambitious agreement, but one that amounts to a major change for citizens, companies, and public authorities in both the EU and the UK.
  • Trade in goods with the EU fell sharply after the Brexit transition period ended, with UK imports from the EU dropping by approximately 25 percent more than UK imports from the rest of the world, a trend which persisted throughout 2021.  

The correct answer is New Delhi.

Key Points

• South Asian University in New Delhi:
  • The South Asian University (SAU) is an international university established by the eight member states of the South Asian Association for Regional Cooperation (SAARC) - Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka.
  • Located in New Delhi, India, the university aims to enhance the quality of education in the region and promote regional integration and cooperation among the SAARC countries.
  • The university offers postgraduate and doctoral programs in various disciplines, including social sciences, economics, and law, fostering a collaborative academic environment.

Additional Information

• Islamabad:
  • Islamabad is the capital city of Pakistan. While it hosts several significant educational institutions, it is not the location of the South Asian University.
• Kathmandu:
  • Kathmandu is the capital city of Nepal and the headquarters of the SAARC Secretariat. Although it plays a crucial role in SAARC activities, it is not the location of the South Asian University.
• Dhaka:
  • Dhaka is the capital city of Bangladesh. It is home to many prominent universities and educational institutions, but it is not where the South Asian University is situated.

The correct answer is Brazil.

Key Points

• India does not have a Free Trade Agreement (FTA) with Brazil:
  • Free Trade Agreements (FTAs) are treaties between two or more countries to facilitate trade by reducing barriers like tariffs and import quotas.
  • India has been actively engaging in FTAs with various countries to boost trade and economic cooperation.
  • However, as of now, India has not signed an FTA with Brazil, one of the largest economies in Latin America.
  • India-Brazil trade relations are governed by the broader frameworks of the World Trade Organization (WTO) and bilateral agreements rather than an FTA.

Additional Information

• India-South Korea FTA:
  • India and South Korea signed the Comprehensive Economic Partnership Agreement (CEPA) in 2009. This agreement aims to reduce tariffs and promote trade and investment between the two countries.
• India-Japan FTA:
  • India and Japan signed the Comprehensive Economic Partnership Agreement (CEPA) in 2011. This agreement covers trade in goods, services, and investment, and aims to enhance economic cooperation between the two nations.
• India-Thailand FTA:
  • India and Thailand have a Framework Agreement for establishing a Free Trade Area, which was signed in 2003. The agreement aims to reduce tariffs and promote trade and economic cooperation between the two countries.

The correct answer is Thailand.

Key Points

• Thailand is not a member of SAARC.
• The South Asian Association for Regional Cooperation (SAARC) was established with the signing of the SAARC Charter in Dhaka on 8 December 1985.
• The idea of regional cooperation in South Asia was first raised in November 1980.
• After consultations, the foreign secretaries of the seven founding countries :
  • Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka—met for the first time in Colombo in April 1981.
  • Afghanistan became the newest member of SAARC at the 13th annual summit in 2005.
  • The Headquarters and Secretariat of the Association are in Kathmandu, Nepal.
• Hence, option 3 is correct.

Additional Information

•  Members of SAARC :
  Afghanistan,Bangladesh,Bhutan,India,Maldives,Nepal,Pakistan,Sri Lanka
• 
• There are currently nine Observers to SAARC, namely: (i) Australia; (ii) China; (iii) the European Union; (iv) Iran; (v) Japan; (vi) the Republic of Korea; (vii) Mauritius; (viii) Myanmar; and (ix) the United States of America.

The correct answer is Option 4.

 Key Points

Tax Holiday - FREE TRADE ZONE (FTZ) [ Section 10A]

Special Provision in respect of newly established undertaking in Free Trade Zone.

Conditions to be satisfied:

The correct answer is 1980.Key Points 

• The South Asian Association for Regional Cooperation (SAARC) is an economic and political organization of eight countries in South Asia.
• ​It was established in 1980 when the Heads of State of Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka formally adopted the charter.
• Afghanistan joined as the 8th member of SAARC in 2007.
• SAARC aims to promote economic growth, social progress, and cultural development within the South Asia region.
• Cooperation in SAARC is based on respect for the five principles of sovereign equality, territorial integrity, political independence, non-interference in the internal affairs of the Member States, and mutual benefit.
• SAARC Summits are held annually and the country hosting the Summit holds the Chair of the Association. 
• Decisions are made on a unanimous basis while bilateral and contentious issues are excluded from the deliberations of SAARC.
• In addition to the eight Member States, nine Observer States join SAARC Summits: China, the US, Myanmar, Iran, Japan, South Korea, Australia, Mauritius, and the European Union.
• Hence, it can be concluded that SAARC's seven founding members joined the organization in 1980.

The correct answer is Geneva in 1964

Key PointsUnited Nations Conference on Trade and Development (UNCTAD) was established in 1964 to promote the development-friendly integration of developing countries into the world economy. UNCTAD is a permanent intergovernmental body headquartered in Geneva in Switzerland. India is a member of UNCTAD.

Important Points

Key Points

• X: Mexico is a member of NAFTA
  • NAFTA, or the North American Free Trade Agreement, was a trade bloc that included Mexico, Canada, and the United States.
  • Mexico became a founding member when NAFTA came into effect on January 1, 1994.
  • The agreement aimed to eliminate trade barriers and promote economic integration among the three countries.
• Y: NAFTA started functioning from 1st Jan. 1995
  • This statement is false. NAFTA officially came into effect on 1st January 1994, not 1995.
  • It led to significant trade liberalization between the three member nations, particularly in agriculture, manufacturing, and automotive sectors.
• Correct Interpretation
  • Since both X (Mexico being a member of NAFTA) and Y (NAFTA starting in 1994) are correct, the answer is option 3.

Additional Information

• History of NAFTA
  • NAFTA was signed in 1992 by the leaders of the United States, Canada, and Mexico: George H.W. Bush, Brian Mulroney, and Carlos Salinas, respectively.
  • The agreement was later replaced by the United States-Mexico-Canada Agreement (USMCA) on 1st July 2020.
• Key Features of NAFTA
  • Trade Liberalization: Eliminated tariffs on most goods traded among the three nations.
  • Investment Protections: Ensured fair treatment for foreign investors within the member countries.
  • Dispute Resolution: Established mechanisms for resolving trade and investment disputes.
• Impacts of NAFTA
  • Increased trade among member nations by over 300% from 1993 to 2017.
  • Boosted economic growth in Mexico, particularly in manufacturing and export-oriented industries.
  • Facilitated cross-border supply chains, particularly in the automotive industry.

The correct answer is - 1964 - Geneva

Key Points

• United Nations Conference on Trade and Development (UNCTAD)
  • UNCTAD was established by the United Nations General Assembly in 1964.
  • Its primary purpose is to promote the integration of developing countries into the world economy through trade and development initiatives.
  • The headquarters of UNCTAD is located in Geneva, Switzerland.
• Significance of 1964
  • 1964 marked the beginning of efforts to address global economic disparities through the establishment of UNCTAD.
  • The first UNCTAD conference was held in Geneva, emphasizing its role in fostering international trade policies favorable to developing nations.

Additional Information

• About UNCTAD
  • UNCTAD serves as a forum for discussing issues related to trade, investment, and development.
  • It publishes research and provides technical assistance to developing nations to help them achieve equitable economic growth.
  • UNCTAD's flagship reports include the Trade and Development Report, World Investment Report, and Economic Development in Africa Report.
• Functions of UNCTAD
  • Analyzing trade and development issues to help countries make informed decisions.
  • Providing technical assistance to developing countries to improve their trade capacity.
  • Promoting sustainable development by supporting policies that align with the United Nations Sustainable Development Goals (SDGs).
• Geneva as a UN Hub
  • Geneva is home to several key international organizations, including UNCTAD, the World Trade Organization (WTO), and the International Labour Organization (ILO).
  • Its strategic location facilitates collaboration among organizations focused on global economic and social development.