Tobin Tax Focus
The Tobin tax is a specific type of financial transaction tax.
It is designed to be applied directly to transactions in the foreign exchange market, also known as the currency market.
Purpose of Tobin Tax
The main objectives behind implementing a Tobin tax include:
- Reducing excessive short-term speculation in currency trading.
- Stabilizing exchange rates by discouraging rapid capital flows.
- Generating revenue that could potentially fund global public goods or development projects.
The tax targets the buying and selling of different currencies.
Important Questions from International Trade
Consider the following statements about the international financial sources :
I. A Global Depository Receipt (GDR) is a bank certificate issued in more than one country for shares in a foreign country.
II. A GDR is very similar to American Depository Receipt (ADR).
Select the correct option.
Which of the following documents is not required for obtaining export license?
_________ was set up with prime objective of professionalizing the country’s foreign trade management by providing training, research and data dissemination.
Which one of the following does not fall within the ambit of WTO operations ?
The following statements relate to Restrictive Trade Practices (RTP). Choose the correct code for the statements being correct or incorrect.
Statement I: Often the low price is the result of the predatory pricing strategy; prompting selling at prices below cost.
Statement II: This is done with an aim to drive out existing competitors because predatory pricing is a restrictive trade practice.
