Foreign Trade Law LLB 5th sem

1. What is the full form of GATS

a) The General Agreement on Trade in Services
b) The General Agreement on tariff in services
c) Both of these
d) None of these

2. In which round of GATT, the GATS came into existence

e) Tokyo round
f) Geneva Round
g) Kennedy Round
h) Uruguay Round

3. What is the full form of GATS

a) The General Agreement on Trade in Services
b) The General Agreement on tariff in services
c) Both of these
d) None of these

4. What is the WTO stands for

a) The world Transactions Organization
b) The World Trade Organization
c) Both of these
d) None of these

5. Which is the predecessor GATS

a) GATS
b) TRIMS
c) ITO
d) WTO

6. Which Article of GATT deals with Most Favored Nation Clause

a) Article 6
b) Article 2
c) Article 4
d) Article 7

7. What is the full form of UNCTAD

a) The United nation Commission on Trade and Development
b) The United Nations Conference on Trade and Development
c) The United Nations Conference on Tariff and Development
d) None of these

8. When did UNCTAD came into existence

a) 1965
b) 1964
c) 1967
d) 1963
9. What is the objective of Most Favored Nation Treatment
a) Treating foreigners and locals equally
b) Treating other people equally
c) Both of these
d) None of these

10. What is the objective of National Treatment Clause

a) Treating foreigners and locals equally
b) Treating other people equally
c) Both of these
d) None of these

11. What is the objective of Most Favored Nation Treatment

a) Treating foreigners and locals equally
b) Treating other people equally
c) Both of these
d) None of these

12. Which Article of GATT deals contains National Treatment Clause

a) Article 6
b) Article 2
c) Article 4
d) Article 3

13. Which Article of GATT deals with Most Favored Nation Clause
a) Article 6
b) Article 2
c) Article 4
d) Article 7

14. What is the total duration of GATT existence

a) 1947-1994
b) 1948-1994
c) 1946-1994
d) None of these

15. Which was the third institution included in the Bretton woods conference for handling
international trade
a) IMF
b) World bank
c) ITO
d) GATT

16. How many countries participated in negotiations to create an International Trade

Organization (ITO) as a specialized agency of the United Nations?
a) Over 50 Countries
b) Over 20 countries
c) Over 55 countries
d) Over 40 countries
17. Which was the third institution included in the Bretton woods conference for handling
international trade
a) IMF
b) World bank
c) ITO
d) GATT

18. Which type of institution the GATT was

a) Plurilateral
b) Multilateral
c) Bilateral
d) Both (a) & (b)

19. When was WTO came into existence

a) 1995
b) 1997
c) 1994
d) 1993

20. Which institution brought Generalized System of Preferences

a) UNCTAD
b) UNICITRAL
c) UNSECO
d) TRIMS

21. Total how many rounds were there in GATT

a) Six
b) Eight
c) Seven
d) Five

22. What was the aim of the Generalized System of preferences

a) To increase the share of the developing countries
b) GSP provides the opportunity for developing countries and the LDCs to export
certain products determined by the preference providing countries duty free or
with lower duty rates.
c) Both (a) & (b)
d) None of these

23. Total how many rounds were there in GATT

a) Six
b) Eight
c) Seven
d) Five

24. UNCITRAL Stands for

e) United Nation conference on international trade law
f) The United Nations Commission on International Trade Law
g) The united nation central tribunal on international trade law
h) None of these
25. When did UNCITRAL came into existence
a) 1965
b) 1964
c) 1967
d) 1966

26. How many times UNCITRAL meets in an year

a) One
b) Two
c) Three
d) Four
27. UNCITRAL was originally composed of how many states
a) 29
b) 30
c) 45
d) 60

28. The members of UNCITRAL can hold their office ______ years
a) Seven
b) Five
c) Six
d) Four

29. How does the UNCITRAL typically takes its decision

a) Through consent
b) By voting
c) Both (a) & (b)
d) Either through consent or voting

30. When did UNCTAD came into existence

a) 1965
b) 1964
c) 1967
d) 1963

31. What is GATT?

a) It is an institution
b) It is an organization
c) It is a legal framework
d) Neither of these

32. What are the objectives of WTO

a) To implement the new world trade system as visualized in the Agreement;
b) To promote World Trade in a manner that benefits every country;
c) To expand and utilize world resources to the best;
e) All of these

33. The Ministerial Conference of WTO meets at least once in every______ years.
a) Three
 b) Two
c) Four
d) One

34. What are the objectives of WTO

a) To implement the new world trade system as visualized in the Agreement;
b) To promote World Trade in a manner that benefits every country;
c) To expand and utilize world resources to the best;
f) All of these

35. In which round of GATT the Anti-Dumping agreement came into existence
a) Kennedy round
b) Uruguay round
c) Tokyo round
g) Geneva round

36. On what procedure the dispute settlement mechanism of the WTO is based
d) Fast & effective;
e) Equitable
f) Mutually effective
h) All of these

37. What is the first stage for the settlement of dispute under dispute settle mechanism of
WTO
g) Consultation stage
h) Panel stage;
i) Appeal stage;
j) None of the above

38. What is the time period within which the countries can settle their differences on their
own before taking the recourse of WTO dispute settlement mechanism
a) Upto 20 days
b) Upto 60 days;
c) Upto three months
d) None of the above
39. How many permanent members are there in appellate body set up by the Dispute
settlement body:-
a) Six
b) Seven
c) Five
a) Eleven
40. Appeal under the Dispute settlement body is to be heard by_____ permanent members.
a) Six
b) Seven
c) Five
b) Three
41. What is the maximum time period within which the appeal has to be referred to the
Appellate body
a) 90 days
b) 60 days
 c) 90 or 60 days
c) 45 days
42. How many members are there in WTO?
a) 153
b) 160
c) 145
d) 110
43. Where is the headquarters of the WTO situated
a) New York
b) Geneva
c) Vienna
e) Switzerland
44. Which provision under the Agreement on Trade-Related Aspects of Intellectual Property
Rights (TRIPS) provides for MFN treatment?
a) Article 4
b) Article 7
c) Article 2
d) None of the above

45. In addition to GATT, the provisions for the MFN are also provided under:
d) General Agreement on Trade in Services (GATS)
e) Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)
f) Both of (a) & (b)
f) None of the above
46. Which provision under the General Agreement on Trade in Services provides for MFN
treatment?
a) Article IV
b) Article V
c) Article II
d) None of the above

47. Theoretically, what is the most significant organ of the WTO

a) The committee on Trade and development
b) The council for Trade in Goods
c) The General council
d) The Ministerial conference

48. Practically, what is the most significant organ of the WTO

a) The committee on Trade and development
b) The council for Trade in Goods
c) The General council
d) The Ministerial conference

49. Where is provision made with regard to the WTO’s institutional arrangements?
a) In the WTO Agreement
b) In the GATT
c) In the UN Charter
d) In the WTO Agreement on Subsidies and Countervailing Measures

50. The term tariff, as used in international trade, refers to

 e) The price of goods when they leave the producing country.
f) a tax on imports
g) a government payment to encourage exports
h) a limit on the quantity of a good that can be imported into a country
51. What fields are covered by WTO agreement?
a) Goods
b) Services
c) Intellectual property
d) All of these.
52. What is the objective of the Agriculture Agreement
a) Is to reform trade in the sector and
b) To make policies more market oriented.
c) Both (a) & (b)
d) None of these

53. Converting the quotas to tariffs is known as

a) Tariffication
b) Quota system
c) None of these
d) Only (a)

54. What international-trade services are covered under GATS

a) Banking
b) Telecommunication
c) Tourism
d) All of the above

55. The basic principle of the GATS include

a) Transparency in regulations, inquiry point
b) International payments: normally unrestricted
c) Progressive liberalization: through further negotiations
d) All of the above

56. Services supplied from one country to another country is covered under which mode of
GATS
a) Cross- border supply (mode 1)
b) Consumption abroad ( mode 2)
c) Commercial Presence (mode 3)
d) Presence of natural persons (mode 4)

57. Safeguards measures are governed under which Article of GATT

a) Article 21
b) Article 13
c) Article 19
d) None of the above

58. What are the main activities of the UNCTAD institution

 a) Trade in goods and services
b) Commodities
c) Investment & Enterprise Development
d) All of the above

59. IBRD stands for

a) International bank for rural development
b) International bank for research development
c) International bank for Reconstruction and development
d) None of the above

60. The term RDB refers to how many institutions

e) Only one
f) Two
g) Three
h) Four

61. RDB stands for

a) Regional development bank
b) Rural development bank
c) Reconstruction development bank
d) Research development bank

62. The headquarters of IBRD is situated at

a) Geneva
b) New York
c) Washington, D.C
d) Vienna

63. As a part of WTO guidelines, Agreement on Agriculture (AOA) doesn’t consider

a) Direct payments to farmers are permitted.
b) Indirect assistance and support to farmers including R & D support by govt. are
not permitted.
c) Domestic policies which directly effect on production and trade have to be cut
back.
d) Least developed countries do not need to make any cuts.

64. WTO is the only international organization dealing with the rules of trade between
organizations.
a) False
b) True
c) Partially true
d) None of these

65. A Most Favored nation status doesn’t necessarily refers to

a) Same and equal economic treatment
b) Non-discriminatory treatment
c) Same tariff rates applicable
 d) Uniform civil code

66. What was the name of the Agreement that laid the foundations for the creation of the
WTO, the IMF and the World Bank Group?
a) The Bretton Woods Agreement (1944)
b) The Potsdam Agreement (1945)
c) The Dayton Agreement (1995)
d) The Luxembourg Agreement (2003)

67. What was the desire behind the Bretton Woods Agreement?
a) A desire to put an end to the Second World War
b) A desire to eradicate the causes that led to the Second World War
c) A desire for creating a system of fluctuating currencies
d) A desire for the abolition of different currencies

68. What was the ultimate goal of the Bretton Woods Agreement?
a) The creation of a global alliance of States
b) The creation of an economic trade block
c) The creation of a new world economic order
d) The creation of a military alliance

69. International Economic Law is primarily concerned with certain institutions of global
remit. These are:
a) The ASEAN, the EU and NAFTA
b) The WTO, the IMF and the World Bank Group
c) The UN and the International Court of Justice
d) The NATO and the International Criminal Court

70. Can dispute settlement take place under the World Bank Group’s auspices?
a) No, because the World Bank Group is a political forum
b) No, because the World Bank Group is an economic forum
c) Yes, through the International Court of Justice machinery
d) Yes, through the International Centre for Settlement of Investment Disputes

71. What is the purpose of international development law for which the World Bank Group
strives?
a) The development of world peace and stability
b) The development of economic co-operation amongst the World Bank’s members
c) The development of a world currency
d) The development of national economies, the increase of productivity and the
bettering of standards of living around the world

72. Why is sustainable development a principle of paramount importance in international

law?
a) Because it promotes world peace
b) Because it is a principle which did not exist before
c) Because it is a principle recognized by the International Court of Justice as well
as by a number of leading international organizations
d) Because non-governmental organizations support this principle
73. Foreign technology agreement are provided through
e) Automatic approval
f) Government approval
g) Either (a) or (b)
h) Neither(a) nor (b)

74. What are the aims of the Agreement on safeguard measures

a) To clarify and reinforce GATT disciplines, particularly those of Article XIX
b) to  re-establish multilateral control over safeguards and eliminate measures that
escape such control
c) to encourage structural adjustment on the part of the industries adversely
affected by increased imports, thereby enhancing competition in international
markets.
i) All of the above

75. The Agreement on Agriculture sets out a number of general and measure-specific
criteria which, when met, allow measures to be placed in the
a) Amber box
b) Green box
c) Both of the above
d) None of the above

76. The Agreement on the Application of Sanitary and Phytosanitary Measures sets out the
basic rules for
a) food safety
b) animal safety
c) plant health standards
d) all of the above

77. Trade Related Investment Measures (TRIMS) doesn’t apply for

a) Measures that affect trade in goods.
b) Measures that lead to restrictions in quantities.
c) Discouraging measures that limit a company’s imports.
d) Discouraging measures that limit a company’s exports.

78. Dumping by a firm can be defined as:

a) A firm selling a product at a price below its cost of production in a foreign market.
b) A firm selling a product in a foreign market at a price lower than the price
charged in its home market.
c) The discharge of waste products into the environment.
d) both a and b

79. Dumping occurs when a firm:

a) Sells too much of a good in a foreign country.
b) Sells in a foreign country at prices that are below true value.
c) Sells in its home market at prices that are below the average price charged by its
competitors.
d) Sells in a foreign market at prices that are below the price charged in the home
market.
80. When the Allied powers met at a conference in 1944, what international organizations
were developed?
a) The International Monetary Fund
b) The International Bank for Reconstruction and Development (World Bank)
c) The World Trade Organization
d) Both a and b

81. GATT was:

a) Part of the International Monetary Fund.
b) Part of the World Bank.
c) Part of the United Nations.
d) The interim committee designed to implement the International Trade
Organization

82. Most favored nation (MFN) status means that a country treats another country:
a) Better than its other trading partners.
b) The same as its other trading partners.
c) Worse than its other trading partners.
d) Any way it chooses since it is the "most favored nation.

83. When using the most favored nation principle in international trade, this means that:
a) We prefer a foreign country's production to domestic production.
b) The lowest MFN negotiated tariff rate would apply to all WTO members
countries.
c) The lowest negotiated tariff rate would apply to some countries.
d) The countries have come close to a free trade agreement.

84. The most favored nation principle of the WTO means that a tariff concession granted by
one member country to another member country will:
a) Be extended to all other countries without exception.
b) Be extended to all other countries that are WTO members.
c) Be extended to all WTO member countries that make a similar concession.
d) Be extended to those WTO member countries that the country making the
concession designates.

85. The current round of multilateral trade negotiations is known as:

a) The Bush Round.
b) The Uruguay Round.
c) The Doha Round.
d) The Tokyo Round.

86. The WTO was established in which round of trade negotiations?

a) The Kennedy Round
b) The Uruguay Round
c) The NAFTA Round
d) The Tokyo Round

87. The General Agreement of Trade in Services is:

a) An agreement among countries on the services that the WTO will offer.
 b) A general agreement among countries that services will be regulated
independently within each country.
c) An agreement among countries that trade in services should be regulatedby
agreed upon rules.
d) A general agreement among countries that eliminates the Multi-Fibre Agreement.

88. Both the WTO and GATT have worked to:

a) reduce the indebtedness of developing countries
b) reduce large fluctuations in exchange rates
c) reduce trade barriers among countries on a bilateral basis
d) reduce trade barriers among countries on a multilateral basis

89. Which organization has procedures for settling international trade disputes?
a) The World Bank
b) The International Monetary Fund
c) The World Court of Appeals
d) The World Trade Organization
90. Which of the following countries is not currently a member of the WTO?
a) France
b) Canada
c) Germany
d) Iraq
91. World War II, tariffs in general have:
a) Increased
b) Decreased
c) remained constant
d) disappeared

92. The concept whereby all trading parties that were contracting parties to GATT or new
members of the WTO are treated the same with respect to tariffs is known as:
a) ITO
b) CIF
c) FOB
d) MFN

93. Which of the following is the term that refers to a situation where a country exports a
good at a lower price than it sells for domestically?
a) Voluntary export restraint
b) International commodity agreements
c) Dumping
d) Autarky
94. In international business the cheaper alternatives to the litigation is/are:
a) Conciliations
b) Arbitrations
c) Negotiations
d) Both (a) & (b)

95. TRIMs stand for:

e) Trade related investment measures
f) Trade review information modules
 g) Tripartite review of investment means
h) Trade related intellectual measures

96. The relation between the General Council and Dispute Settlement Body is
a) dispute Settlement body reports to General Council.
b) both report to Ministerial Conference.
c) both are same, functioning differently.
d) both have Trade Policy Review Body as the appellate body.

97. The final report of the Panel becomes the ruling in a dispute
a) if both the disputing countries agree.
b) if the report is accepted by majority of members.
c) if the report is accepted by all the members.
d) unless the report is rejected by consensus.

98. UNCTAD stands for

a) A. United Nations Council for Technical Development.
b) B. United Nations Conference on Trade and Development.
c) C. United National Census on Trade and Development.
d) D. United Nations Center for Technology and Development

99. GSP stands for

a) Goods Shipment Procedure
b) Generalized System of Payments.
c) Generalized System of Preferences.
d) Generalized Scheme for Payment.
100. MFN is an acronym of
a) Most Favorable Nations
b) Most Favored Nations.
c) Most Fortune Nations
d) Most Fastest Nations.

101.The relation between TRIPS and WIPO conventions is

a.WIPO conventions are more valid.
b. TRIPS agreement excludes subjects covered by WIPO conventions.
c. TRIPS agreement is subordinate to WIPO conventions.
d. TRIPS agreement incorporates substantive provisions of WIPO conventions.

102. Which one of the following is not a part of institutions under Bretton Woods System?
a. IMF.
b. IBRD( World Bank).
c. IFC.
d. BIS.

103. Why is sustainable development a principle of paramount importance in international

law?
 a. Because it promotes world peace
b. Because it is a principle which did not exist before
c. Because it is a principle recognised by the International Court of Justice as well as
bumber of leading international organisations
d. Because non-governmental organisations support this principle

104. The initial guiding principle behind the formation of GATT was
a. Free trade through reduction of tariff worldwide.
b. Free trade through the establishment of regional trading groups.
c. Free trade through the harmonious law in the industrial countries.
d. Free trade through the development of the less industrialized nations.

105. The three foundational principle of the GATT includes

a. Most favoured nations, national treatment principle, principle of transperancy.
b. Most favoured nation, non- discrimination principle, principle of transperancy.
c. National treatment principle, non- discrimination principle, principle of
transperancy.
d. Most favoured nation, non- discrimination principle, principle of transparency.

106. A tariff is
a. a complete ban on trade with a nation.
b. a ban on the importation of certain products from a nation.
c. an import duty.
d. a tax on goods being imported into a country.

107. As a dispute resolution device, mediation refers to the process whereby

a. two parties in a dispute agree to binding arbitration.
b. Two parties in the dispute attempt to find a mutually satisfactory solution through
use of thirdparty.
c. Two parties in a dispute agree to have their case heard by a mutually agreed
court.
d. two parties in a dispute agree to binding understanding.

108. When a foreign company exports and sells below the market price, it is known as
a. subsidies.
b. Countervailing measures.
c. Dumping.
d. Punitive barriers.

109. International trade disputes handled by the WTO under the auspices of the
a. International Court of Justice.
b. Dispute Settlement Body.
c. International Chamber of Commerce Arbitration Panel.
d. World Court.

110. The uniform classification system adopted by most countries to classify goods in
internationaltrade is
a. Harmonised commodity description.
b. Harmonised tariff schedule.
c. Harmonised coding system.
d. Harmonized classification schedule.
111. The General Agreement on Tariff and Trade was replaced by
a. Cross Border Trade Group.
b. North American Free Trade Agreement.
c. Mutlilateral Agreement.
d. World Trade Organisation

112. A tax imposed on certain type of imported goods is

a. a tariff.
b. a surcharge.
c. a severance tax.
d. a subsidy.

113. Foreign exchange transactions involve monetary transactions

a. among residents of the same country.
b. between residents of two countries only.
c. between residents of two or more countries.
d. among residents of at least three countries.

114. Which of the following statements is true?

a. There is no link between foreign trade and foreign exchange.
b. Foreign exchange leads to foreign trade.
c. Foreign trade leads to foreign exchange.
d. No foreign exchange is involved in foreign trade
115. Non-resident Bank Accounts' refer to
a. Nostro account.
b. Vostro account.
c. Accounts opened in offshore centres.
d. Foreign bank account.

116. Non-resident bank accounts are maintained in

a. the permitted currencies.
b. the currency of the country of the bank maintaining the account.
c. the currencies in which FCNR accounts are permitted to be maintained.
d. Indian rupee.

117. According to classification by IMF, the currency system of India falls under
a. managed floating.
b. independently floating.
c. crawling peg.
d. pegged to basket of currencies.

118. Under the original scheme IMF, a member country had to obtain the permission of IMF
for
a. any devaluation of its currency.
b. any devaluation or revaluation of its currency .
c. devaluation of its currency at a time exceeding 10%.
d. devaluation of its currency exceeding cumulatively 10%.
 119. The apex body of the Foreign Trade is
a. The Central Government.
b. The State Government.
c. The Ministry of Commerce.
d. All the above

120. The WTO Agreement related to investment measures is

a. TRIPS.
b. TRIMS.
c. GATS.
d. TCA.

Subjective questions
1. Give a historical background of international trade.
2. Discuss in UNCITRAL
3. Discuss in detail UNCTAD
4. Discuss in detail GATT
5. What is the difference between GATT & WTO
6. How did the GATS came into existence
7. What provisions under GATT deals with the MFN & NT
8. What is WTO? Explain in brief.
9. Define Most Favored Nation. Explain its legal framework
10. Explain the exception to the Most Favored Nation rule
11. What is national treatment provided under the GATT
12. Briefly explain the safeguard measures provided under the Agreement on Safeguard?
13. What do you mean TRIMs.expalin in breif?
14. “Anti dumping duty is recognised as an instrument for ensuring fair trade and is not a
measure of protection per se for the domestic industry”. Explain
15. Why agreement on Technical Barrires to trade came into existence?
16. What do you understand by the Agreement on Sanitary & Physosanitary.
17. What are the international standards provided under Sanitary & Physosanitary
Agreement
18. What is GATS?
19. What are the modes of supplying services under GATS
20. Discuss the GATS in detail?
21. What do you understand by Ongoing Multilateral negotiations
22. Which Article of GATT define the conditions under which violation of the GATT rules
permit contracting parties to seek redress and the means of so doing. Explain?
23. Explain Dispute Settlement under GATT in detail.
24. What are the remedies available to a party under the Dispute Settlement mechanism of
GATT
25. What is IBRD. Explain?
26. Explain the concept of sustainable development in brief?
27. What are the remedies available under dispute settlement mechanism of WTO?
28. What is the purpose of Article XXIII of GATT
29. Discuss in details the modes available under GATS for supplying services
30. Discuss in detail about Regional Development Bank?
31. Define:
a) FII’s
b) The provisions which deals with the Investment by Non-resident Indians (NRIs)
and Overseas corporate bodies (OCBs)