Answer with Explanation

Date 05/05/2018

1 Which of the following are the roles of World Trade Organization

1. Trade Negotiation
2. Dispute Settlement
3. Building Trade Capacity
Choose the correct answer from the following code

(A) Only 1 and 3

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(B) Only 2 and 3
(C) Only 1
(D) All the above

Ans: (D)

Explanation:

The following are the role of WTO

 Trade Negotiation
 Implementation and monitoring
 Dispute Settlement
 Building Trade Capacity
 Outreach
https://www.wto.org/english/thewto_e/whatis_e/what_we_do_e.htm

2 Consider the following statements about World Trade Organization:

1. It is a democratic institution based on principal of one vote one member

2. It is a part of United Nation but act autonomously

Choose the correct answer from the following code:

(A) Only 1
(B) Only 2
(C) Both 1 and 2
(D) None of the above

Ans: (A)

Explanation:

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3 Which of the following pair are correctly matched based on Agreement on
Agriculture of WTO:

Colour of Box Features

1 Green Box I Subsidies for R&D and
Infrastructure
2 Amber Box II Subsidies for direct Payment to
farmers to limit production
3 Blue Box III Subsidies that impact on market
price

Choose the correct answer from the following code:

(A) Only 1
(B) Only 1 and 3
(C) Only 2 and 3
(D) Only 1 and 2

Ans: (A)

Explanation:

Colour of Box Features

1 Green Box I Subsidies for R&D and
Infrastructure

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 2 Amber Box II Subsidies that impact on market
price
3 Blue Box III Subsidies for direct Payment to
farmers to limit production

4 Which of the following Intellectual property right cannot be protected legally?

(A) Patent
(B) Copyright
(C) Trade Secret
(D) Trademarks

Ans : (C)

Explanation:

A trade secret is a formula, process, device, or other business information that companies
keep private to give them a business advantage over their competitors. Examples of trade
secrets include:

 Soda formulas
 Customer lists
 Survey results
 Computer algorithms

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Unlike the other types of intellectual property, you can't obtain protection by
registering your trade secret. Instead, protection lasts only as long as you take the
necessary steps to control disclosure and use of the information.
Businesses use nondisclosure agreements, restricted access to confidential information,
post-employment restrictive covenants, and other security practices to maintain trade
secrets.

5 Consider the following statements:

1. Compulsory licensing allows a government to temporary override a patent.

2. Compulsory licensing is not allowed as per the regulation of TRIPS

Choose the correct answer from the following code:

(A) Only 1
(B) Only 2
(C) Both 1 and 2
(D) None of the above

Ans: (A)

Explanation:

Compulsory licenses are sovereign state authorizations which enable a third party to
make, use, or sell a patented product without the consent of the patent holder. Provisions
pertaining to compulsory licensing are provided for under both the Indian Patent Act,
1970, as well as the international legal agreement between all the member nations of
WTO – the TRIPS. In India, Chapter XVI of the Indian Patent Act, 1970 deals with
compulsory licensing while the conditions which need to be fulfilled for the grant of a
compulsory license are laid down under Sections 84 and 92 of the Act.

6 Consider the following statement:

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 1. Anti-Dumping duty is imposed to offset the price of import when producer or
exporter gets subsidy in their home country.
2. Countervailing duty is imposed when a firm is assessed to have sold its product
below the cost of production or below its market cost in home country to damage
the production in importing country.

Choose the correct answer from the following code:

(A) Only 1
(B) Only 2
(C) Both 1 and 2
(D) None of the above

Ans: (D)

Explanation:

7 Which of the following is correct about special safeguard mechanism

1. It is to protect domestic agriculture production from cheap imports

2. It is applicable to all the members of the WTO

Choose the correct answer from the following code:

(A) Only 1
(B) Only 2
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(C) Both 1 and 2
(D) None of the above

Ans: (A)

Explanation:

8 Which of the following is not a founding member of Mercosur?

1. Argentina
2. Venezuela
3. Brazil
4. Paraguay

Ans: (B)

Explanation:

Mercosur was created in 1991 when Argentina, Brazil, Paraguay, and Uruguay signed
the Treaty of Asuncion, an accord calling for the “free movement of goods, services,
and factors of production between countries.”

9 Arrange the following trade agreements in increasing order of Integration of

economy:

1. Custom Union
2. Free Trade Area
3. Economic and Monetary union
4. Preferential Trade Area

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Choose the correct answer from the following code:

(A) 4<1<3<2
(B) 2<4<1<3
(c) 4<2<1<3
(D) 2<4<3<1

10 Consider the following about Regional Comprehensive Economic Partnership:

1. It is a free trade agreement (FTA) between ASEAN and Six FTA partners of ASEAN
2. RCEP will lead to lowering of tariffs for goods and services between the member
countries.

Choose the correct answer from the following code:

(A) Only 1
(B) Only 2
(C) Both 1 and 2
(D) None of the above

Ans: (C)

Explanation:

RCEP is a proposed FTA between 10 ASEAN countries and their six FTA partners, namely
Australia, China, India, Japan, South Korea and New Zealand.
Trade Relations and groups are based on the principal of lowering of trade barriers.

11 Consider the following statements regarding Alliance of small Island states(AOSIS) :

1. It is an intergovernmental organisation of low lying coastal and small island nations.

1. Purpose of the alliance is to consolidate the voices of Small Island Developing States
(SIDS) to address global warming.
2. India along with Mauritius have recently become members of AOSIS.

Choose the correct answer from the following code:

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(A) 1 and 2 only
(B) 1 and 3 only
(C) 2 and 3 only
(D) 1,2 and 3

Ans: (A)

Explanation:

It is an intergovernmental organisation of low lying coastal and small island nations.

Established in 1990. Purpose of the alliance is to consolidate the voices of Small Island
Developing States (SIDS) to address global warming.
As the existence of many AOSIS states are put at risk by climate change AOSIS has
threatened lawsuits
AOSIS has a membership of 44 states
India is not a member therefore statement 3 is the only incorrect statement .
In Indian ocean 4 states are members:

a. Comoros b. Maldives c. Mauritius d. Seychelles

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12 Which of the following cities is India’s first World Heritage City as declared by
UNESCO ?

(A) Varanasi
(B) Bodh Gaya
(C) Ahmedabad
(D) Delhi

Ans: (C)

Explanation:

More than 600 year old Walled City of Ahmedabad founded by Ahmed Shah has been
declared India’s first World Heritage City, recognising heritage value of the walled city’s
unique heritage. Ahmedabad’s nomination received huge support from around 20
countries, who lauded the peaceful co-existence of dominant Hindu, Islamic and Jain
communities in the Walled City area. Besides it architectural marvels of wooden havelis,
the world community also stressed on the fact that the city was the epicentre of non
violent freedom struggle that led to country’s independence from colonial rulers in 1947.

13 Which of the following pollutants are not considered in National air quality index:

1. Carbon dioxide
2. Arsenic
3. Ammonia
4. Lead

Choose the correct answer from the following code:

(A) 1 and 2 only

(B) 2 and 3 only
(C) 3 and 4 only
(D) 2 and 4 only

Ans: (A)

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Explanation:

National air quality index :

It is published for every month by CPCB along with a numerical value and a colour code
which helps in comparing air pollution levels in cities. The AQI will consider eight
pollutants (PM10, PM2.5, NO2, SO2, CO, O3, NH3, and Pb) for which short-term (up to
24-hourly averaging period) National Ambient Air Quality Standards are prescribed.
Therefore Carbon dioxide and Arsenic are not part of it.

14 India innovation index is released by which of the following:

(A) Quality council of India

(B) NITI Aayog, DIPP, CII
(C) NITI Aayog and MHRD
(D) Institute of economics and peace.

Ans: (B)

Explanation:

To make India an innovation-driven economy, NITI Aayog, Department of Industrial Policy

& Promotion (DIPP) and Confederation of Indian Industry (CII) together launched a mega
initiative “India Innovation Index” that will rank states on Innovations through country’s
first online innovation index portal that will capture data on innovation from all Indian
states on innovation and regularly update it in real time.
The India Innovation Index Framework will be structured based on the best practices
followed in Global Innovation Index (GII) indicators and additionally by adding India-
centric parameters those truly reflect the Indian innovation ecosystem.

15 Consider the following statements related to India state of forests report:

1. The report is prepared by forest survey of India annually

2. It has revealed that tree and forest cover in India has decreased
3. Mangrove states in general have shown an increase in mangrove cover and none
of them show any negative change

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Choose the correct answer from the following code:

(A) 1 and 3 only

(B) 3 only
(C) 1,2 and 3
(D) None of the above

Ans: (B)

Explanation:

Statement 1 is incorrect: FSI has been assessing the forest and tree resources of our
country on a biennial basis since 1987. The results of the assessment are published in its
biennial report titled India state of forest report .

Statement 2 is incorrect: It has revealed that total forest and tree cover in India has
increased of over 8,021 sq km (about 80.20 million hectare) which is one percent
increase from 2015 .

Statement 3 is correct: 7 out of 12 mangrove states have shown an increase in

mangrove cover and none of them show any negative change.

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