International Trade Economics

An embargo is an official ban on trade or other commercial activity with a particular country. It's a political tool used to pressure nations by restricting economic exchanges. The term comes from Spanish/Italian meaning 'to stop, hinder, or restrain'.

A Trading Network is a set of organizations that have agreed to exchange business documents using standardized formats and protocols. Option B is incorrect because it says 'important documents' rather than 'business documents'. Option A incorrectly refers to rules instead of organizations. Option D is nonsensical - documents cannot exchange organizations.

Trade settlement in India follows a T+1 cycle, meaning settlement occurs on the next business day after the trade. India shifted from T+2 to T+1 settlement in 2021 to align with global market standards and reduce counterparty risk.

Correct option is (4).

The biggest or greatest amount of involvement in a foreign market comes through direct investment.

Dumping is the pricing in the international market. It happens when manufacturers export a product to another country at a price either below the price charged in its home market or below its cost of production.

Globalisation refers to the integration of domestic economies with the world economy through increased cross-border trade, investment, and flow of technology and information. It involves removing barriers between national economies and creating a more interconnected global marketplace. Option A correctly defines globalisation as integrating domestic and world economies.

The World Trade Organization (WTO) was established to regulate international trade between nations. It acts as a permanent watchdog by monitoring trade policies, resolving trade disputes, and enforcing trade rules among member countries. The WTO ensures that trade flows smoothly, predictably, and freely. Option C correctly identifies WTO as the international trade watchdog.

After the 1991 economic reforms, India removed quantitative restrictions on most imports except for a few sensitive items like consumer goods and agricultural products. Option A is incorrect as QRs were removed, not imposed. Option C is incorrect as tariff walls were reduced, not raised. Option D is incorrect as foreign investment was encouraged through FDI liberalization.

The term 'international liquidity' connotes the world supply of reserves of gold and currencies which are freely usable internationally, such as dollars and sterling, plus facilities for borrowing these.

Bertil Ohlin (note spelling correction from 'Bertic') developed the Heckscher-Ohlin model of international trade, which explains trade patterns based on factor endowments. The model shows that countries export goods that use their abundant factors of production and import goods that use their scarce factors. This fundamental theory (with Eli Heckscher) earned Ohlin the Nobel Prize in Economics in 1977. Adam Smith proposed absolute advantage theory, while Arthur Okun is known for Okun's Law in macroeconomics.

ASEAN aims include accelerating economic growth, social progress, and sociocultural evolution among its members, alongside protection of regional stability as well as providing a mechanism for member countries to resolve differences peacefully.

Correct answer is (3). 

The Dunkel Draft (1991) was the key WTO proposal that introduced TRIPS (intellectual property rights) and TRIMS (investment measures). It was named after Arthur Dunkel, GATT Director-General. The Chelliah Committee dealt with Indian tax reform. Preston Proposal is unrelated to WTO agreements.

The WTO (World Trade Organization) is the primary international body that governs global trade rules, resolves trade disputes between nations, and ensures trade flows as smoothly, predictably, and freely as possible.