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1. Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
(Prefer mailing. Call in emergency )
ASSIGNMENT
DRIVE SPRING 2016
PROGRAM Master of Business Administration- MBA
SEMESTER 4
SUBJECT CODE & NAME IB0015- Foreign Trade of India
BK ID B1908
CREDIT & MARKS 4 CREDITS, 60 MARKS
Note: Answer all questions. Kindly note that answers for 10 marks questions should be
approximately of 400 words. Each question is followed by evaluation scheme.
Question. 1. Discuss the Theory of Absolute Advantage and
Ricardo’s Theory of Comparative Advantage.
Answer:The theory of comparative advantage is an economic theory about the work gains from
trade for individuals, firms, or nations that arise from differences in their factor endowments or
technological progress.Inan economic model, an agent has a comparative advantage over another
in producing a particular good if they can
New theory of international values: Recently, Y. Shiozawa succeeded to construct a theory of
international value onthe tradition of Ricardo's cost-of-production theory of value. It is based on a
wide assumption as follows:
 Many countries

Question. 2. Discuss in detail Foreign Trade in India since
Independence.
Answer:The origin of India’s foreign trade can be traced back to the age of the Indus Valley
civilization. But the growth of foreign trade gained momentum during the British rule. During that
period, India was a supplier of food stuffs and raw materials to England and an importer of
anufactured goods. However, organised attempts to promote foreign trade were made only after
Independence, particularly with the onset of economic planning. Indian economic planning

2. completedfivedecades.Duringthisperiod,the value, composition, and direction of India’s foreign
trade have undergone significant changes.
Question. 3. Explain the Main Features of India’s Foreign Trade
Policy.
Answer:Foreign trade plays an important role in the economic development of country. It is said,
“Foreigntrade isnot simplyadevice forachievingproductive efficiencybutisanengine of economic
growth.”
Many reasons certify this statement.
(i) Nation can optimally use its resources.
(ii) Technical know-how can be imported.
(iii) Surplus production can be exported.
Question. 4. Write short notes on India’s trade with:
a. Special Economic Zones (SEZ)
Answer:The term Special Economic Zone (SEZ) is an area in which business and trade laws differ
from the rest of the country. SEZs are located within a country's national borders, and their aims
include: increased trade
Question. 5. Discuss in detail the various Sectoral Performance of
India’s External Sector.
Answer:The inward looking industrialisation process did result in high rates of industrial growth
between 1956 and 1966. However, several weaknesses of such a process of industrialisation soon
became evident,asinefficienciescreptintothe systemandthe economyturnedintoan increasingly
‘high-cost’one.Overaperiodof time thisledtoa ‘technological lag’andalsoresultedinpoorexport
performance.
Question. 6. What are PTA and FTA? Identify the key difference
between the two.
Answer:

3. free trade isthe unrestrictedpurchase andsale of goodsandservicesbetweencountrieswithoutthe
imposition of constraints such as tariffs, duties and quotas. Free trade is a win-win proposition
because it enables nations to focus on their core competitive advantage(s), thereby maximizing
economicoutputandfosteringincome growthfortheircitizens.Formerlyinsulareconomies such as
Chinaand Indiahave expandedatmuchfastergrowthratessince theyadopted free trade principles
in the 1980s and 1990s, respectively.
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
(Prefer mailing. Call in emergency )