‘Human Capacity’ under Building Trade Capacity as per efforts made by WTO to meet special requirements of developing countries refers to help on which of the following :
Trade Lawyers
Trade lawyers — that is, trained people — option 4.
The distinction being tested. Trade capacity building in the WTO’s usage covers several different kinds of deficiency that hold developing countries back, and the question turns on matching each option to its own category :
| Kind of capacity | What it means | Which option |
|---|---|---|
| Human capacity | Trained people — negotiators, officials, and trade lawyers able to argue a case in a dispute | 4 |
| Physical infrastructure | Roads, ports, warehouses, telecommunications | 1 |
| Institutional capacity | National standards authorities, customs administration, testing and certification bodies | 2 and 3 |
Why lawyers in particular. WTO membership confers rights that are worth nothing unless a country can use them. Its Dispute Settlement Understanding is a legal process: a member must be able to bring a complaint, marshal evidence, argue before a panel and appeal. A developing country with no specialists in trade law cannot do that, and in practice does not litigate at all, however strong its case. The Advisory Centre on WTO Law, established in Geneva in 2001, exists specifically to supply that expertise at subsidised rates.
The WTO’s provisions for developing countries, of which capacity building is one strand :
| Provision | Content |
|---|---|
| Special and Differential Treatment | Longer transition periods, lighter obligations, greater flexibility |
| Technical assistance and training | Courses, seminars, reference centres for officials |
| Aid for Trade | Financing infrastructure and productive capacity so that trade rules can be used |
| Enhanced Integrated Framework | Targeted at the least-developed countries |
The general principle the question illustrates is that market access alone does not produce trade. A country also needs the physical means to move goods, the institutions to certify them, and the people to negotiate and defend its interests — and the third of these is what “human capacity” names.
Hence, the answer is Trade Lawyers.
Which one of the following transactions can be carried on without any restriction or regulation of the RBI under the FEMA?
Which of the following is true :
Foreign exchange quotation when expressed in a manner that reflects the exchange of a specified number of foreign currencies vis-à-vis one unit of local currency is expressed as :
According to which of the following theories of International Business, the pattern of FDI is determined by combination of Core Competency, locational advantage and entry mode ?
‘Horizontal FDI’ means :
Given below are two statements : one is labelled as Assertion (A) and the other is labelled as Reason (R).
Assertion (A) : For exports of goods, the exporter has to apply to the nominated export inspection agency for conducting the pre-shipment and quality control inspection for the export consignment and obtain Export Credit Certificate conforming to the prescribed specifications.
Reason (R) : This inspection certificate would be required for customs clearance of cargo before shipment.
In the light of the above statements, choose the most appropriate answer from the options given below :
Match List - I with List - II.
| List - I (Organizations) | List - II (Management tools and Techniques) |
| A. World Bank | I. Trade Policy Review Mechanism (TPRM) |
| B. WTO | II. International Commodity Agreements (ICAs) |
| C. CFC | III. Global System of Trade Preferences (GSTP) |
| D. UNCTAD | IV. The Logistics Performance Index (LPI) |
Choose the correct answer from the options given below :
A conscious belief that only the host-country managers can ever really understand the culture and behaviour of the host-country market. It refers to which of the following top executives’ values :
If rF and rD are the interest rates of a foreign country and domestic country, respectively, and if SF/D and fF/D are spot exchange rate and forward exchange rate between the countries F and D, the interest rate parity is indicated by :
An Indian company is importing machine at a price of $ 5,00,000, payable after six months. The current exchange rate is ₹ 63 per US $. The forward contract for six months is available @ ₹ 64 per US $. If the rate turns out to be ₹ 64.25 per US $, the net gain to the importer in case he has entered into contract will be :
| List I | List II |
| (i) Absolute Cost Advantage theory | (a) Raymond Xernon |
| (ii) Comparative Cost Advantage theory | (b) Adam Smith |
| (iii) Factor Endowment theory | (c) David Recardo |
| (iv) Product Life cycle theory | (d) Eli Heckscher |