subjects4u@gmail.com

1. Spring-2016
Get solved assignments at nominal price of Rs.125 each.
Mail us at: subjects4u@gmail.com or contact at
09882243490
Master of Business Administration - MBA Semester 4
IB0015-Foreign Trade of India
Assignment (60 Marks)
Note: Answers for 10 marks questions should be approximately of 400 words. Each question is
followed by evaluation scheme. Each Question carries 10 marks 6 X 10=60.
Q1. Discuss the Theory of Absolute Advantage and Ricardo’s Theory of Comparative Advantage.
Answer. Theory of Absolute Advantage
In the late 18th and early 19th centuries, first Adam Smith and subsequently David Ricardo,
explored the basis for international trade as part of their efforts to make a case for free trade.
Their writings were responses to the doctrine of mercantilism prevailing at that time. Their classic
theories swayed policy makers for a whole century. Today we view them as special cases of the
more powerful theory of trade.
Q2. Discuss in detail Foreign Trade in India since Independence.
Answer. Foreign Trade in India since Independence
For the study of trends of India’s foreign trade during post-independence period, it is convenient
to divide the entire period into seven phases.
Q3. Explain the Main Features of India’s Foreign Trade Policy
Answer. Main Features of India’s Foreign Trade Policy
Trade encourages the foreign earnings as well as stimulates greater economic activities. The main
objectives of Import-export policy of the Indian Government have been to:
(i) Provide further impetus to exports;
(ii) Provide support to the growth of indigenous industry;
Q4. Write short notes on India’s trade with:
a. Special Economic Zones (SEZ)
b. Free Trade Warehousing Zones

2. Answer. a. The SEZ policy was announced in April 2000. The objective was to make the SEZs an
engine of economic growth by developing quality infrastructure and offer attractive fiscal package
at the Central and State level with a single window clearance. All the areas providing a holistic
economic development have been addressed and the scheme provides for further progress of
self-sustaining industry townships. The Indian Parliament in May 2005 obtained the President’s
approval on 23 June 2005. The SEZ Act 2005 supported by SEZ rules, became effective on 10
February 2006.
Q5. Discuss in detail the various Sectoral Performance of India’s External Sector
Answer. Sectoral Performance
Gems & Jewellery
India’s gems and jewellery industry is a bright star of the economy, and one of the important
foundations of the country’s export-led growth. The consumption of gold and jewellery products
in India has grown rapidly over the years at the rate of 10-15 per cent per annum and today, the
domestic Indian market is estimated to be over US$ 30 billion. India possesses world’s most
Q6. What are PTA and FTA? Identify the key difference between the two.
Answer. PTA (Preferential Trade Agreement): A preferential trade area (also preferential trade
agreement, PTA) is a trading bloc that gives preferential access to certain products from the
participating countries. This is done by reducing tariffs but not by abolishing them completely. A
PTA can be established through a trade pact. It is the first stage of economic integration. The line
between a PTA and a free trade area (FTA) may be blurred, as almost any PTA has a main goal of
becoming a FTA in accordance with the General Agreement on Tariffs and Trade.
Spring-2016
Get solved assignments at nominal price of Rs.125 each.
Mail us at: subjects4u@gmail.com or contact at
09882243490