PAN AFRICAN E-NETWORK PROJECT

Forex Banking

ASSIGNMENT ‘A'

1. "A sound financial system is the backbone of a developing economy". Do you agree with the statement? Give your arguments by illustrating each of them.

2. The forex markets are different kinds of markets where customers are connected globally. Elaborate.

3. More the risks more are going to be the returns. What types of risk exist in the international foreign exchange markets? Do we have any risk management system as well?

4. How the currency exchange rates are determined? What role is played by the interest rates in determining the exchange rates? Explain by giving an practical example.

5. Assume zero transaction costs:
A: ¥/U$ = 106.50, B: C$/U$ = 1.3215 , C: ¥/C$ = 82.905
a) Determine if triangular arbitrage is feasible.
b) State what you would do to profit from arbitrage.
c) Obtain the percentage profit possible.

ASSIGNMENT ‘B'

1. "Financial markets need to be regulated and controlled". Do you agree with the statement?
a) Elaborate by explaining the types of financial markets and role of central bank in an international scenario
b) Also can you relate the regulation with the recent global financial crisis?

2. What do you mean by term structure of interest rates? Explain three main theories of the term structure that have been proposed.

3. What do you understand by: SLR, CRR, Deposit creation, Repo & Reverse Repo rate. Explain these terms through a balance sheet of a bank?

Case Study

1. The various rates of financial products are:

Gold - $735/Oz; Gold - Rs. 13000/10gms; Re/USD - Rs. 48; Oil - $148

Analyze the rate fluctuation in the price of above products & prepare a report for data between Feb 2008 to 31 march 2009.

2. The following info is available

Incase of a deposit or a loan, the amount is the maturity value which includes interest and the principal. The CHF interest rate is 6% for all maturities and is known to remain at this level with certainty.

You are required to work out a neat forex transaction plan for next one year to ensure smooth receipts and payments by the British company.

ASSIGNMENT ‘C'

1. Which of the following is an example of foreign exchange?
a) Exchange of cash issued by a foreign central bank.
b) Exchange of claims denominated in another currency.
c) Exchange of bank deposits.
d) All of the above.

2. US firms often find that borrowing from foreign markets:
a) is disadvantageous because the exchange rate risk increases the cost of borrowing.
b) is about the same as borrowing domestically.
c) is more expensive.
d) is less expensive.

3. Forex trading is always done in pairs?
a) Yes
b) No

4. The risks of losing money in Forex trading is high, but it is controllable Through
a) Proper education and training
b) SPECULATION
c) Black marketing

5. If Euros are quoted at price $1.2055 in Citibank in New York, this means that:
a) large banks will quote their own rate while small banks will follow the lead of Citibank.
b) every other bank is quoting the same price.
c) this is the price used by the Central Bank.
d) most banks will probably be in that range.

6. Which of the following are usual suppliers of Euros?
a) US foreign investors remitting profits.
b) European direct investors.
c) US exporters.
d) All of the above.

7. The vast majority of large-scale foreign exchange transactions in the US are:

a) done through foreign exchange brokers.
b) done through Morgan-Chase and Deutsche Bank of America.
c) done through Interbank.
d) done through the Chicago Mercantile Exchange

8. If a company contracts today for some future date of actual currency exchange, they will be making use of a:
a) stock rate.
b) variable rate.
c) futures rate.
d) forward rate.

9. Which of the following might affect the cost of a trip to Japan by a resident of Britain?
a) The depreciation of the Euro.
b) The time at which the British resident purchases Yen.
c) The depreciation of the US dollar.
d) All of the above.

10. A company that functions to unite sellers and buyers of foreign currency-denominated bank deposits is called:
a) a broker.
b) an investor.
c) a wholesaler.
d) a bank

11. _____________ contracts are more widely accessible to firms and individuals than ____________ contracts.
a) Futures; forward
b) Forward; futures
c) Forward; arbitrageur
d) Arbitrageur; forward

12. If the euro dollar deposit rate is 3% per year and the euro-euro rate is 6% per year, by how much will the euro be expected to devalue in the coming year?
a) 0.3%
b) 2.0%
c) 2.9%
d) 3.0%

13. According to which theory will differences in nominal interest rates be eliminated in the exchange rate?

a) The PPP.
b) The Fisher effect.
c) The Leontief paradox.
d) The combined equilibrium theory.

14. If inflation goes up in the US relative to other countries, it is expected that the price of the US dollar will:

a) increase.
b) remain the same.
c) fall.
d) may increase or decrease.

15. Which of the following is an exchange risk management technique through which the firm contracts with a third party to pass exchange risk onto that party, via instruments such as forward contracts, futures, and options?

a) Diversification.
b) Risk avoidance.
c) Risk transfer.
d) Risk adaptation.

16. What is the base interest rate paid on deposits among banks in the eurocurrency market called?
a) INEC.
b) EUIN.
c) LIBOR.
d) INEU.

17. A commercial bank estimates that its net income suffers whenever interest rates increase. The bank is looking to use derivatives to reduce its interest rate risk. Which of the following strategies best protects the bank against rising interest rates?

a. Buying inverse floaters.
b. Entering into an interest rate swap where the bank receives a fixed payment stream, and in return agrees to make payments that float with market interest rates.
c. Purchase principal only (PO) strips that decline in value whenever interest rates rise.
d. Enter into a short hedge where the bank agrees to sell interest rate futures.
e. Sell some of the banks floating rate loans and use the proceeds to make fixed rate loans.

18. Company A can issue floating rate debt at LIBOR + 1 percent and can issue fixed rate debt at 9 percent. Company B can issue floating rate debt at LIBOR + 1.4 percent and can issue fixed rate debt at 9.4 percent. Suppose A issues floating rate debt and B issues fixed rate debt. They engage in the following swap: A will make a fixed 7.95 percent payment to B, and B will make a floating rate payment equal to LIBOR to A. What are the resulting net payments of A and B?

a. A pays a fixed rate of 9 percent, B pays LIBOR + 1.5 percent.
b. A pays a fixed rate of 8.95 percent, B pays LIBOR + 1.45 percent.
c. A pays LIBOR plus 1 percent, B pays a fixed rate of 9.4 percent.
d. A pays a fixed rate of 7.95 percent, B pays LIBOR.
e. None of the answers above is correct.

19. Which of the following are not ways in which risk management can increase the value of a company?

a. Risk management can increase debt capacity.
b. Risk management can help a firm maintain its optimal capital budget.
c. Risk management can reduce the expected costs of financial distress.
d. Risk management can help firms minimize taxes.
e. Risk management can allow managers to maximize their bonuses.

20. Which of the following statements is most correct?

a. One advantage of forward contracts is that they are default free.
b. Futures contracts generally trade on an organized exchange and are marked to market daily.
c. Goods are never delivered under forward contracts, but are almost always delivered under futures contracts.
d. Answers a and c are correct.
e. None of the answers above is correct.

21. Multinational financial management requires that

a. The effects of changing currency values be included in financial analyses.
b. Legal and economic differences be considered in financial decisions.
c. Political risk be excluded from multinational corporate financial analyses.
d. All of the above.
e. Only a and b above.
22. . If the inflation rate in the United States is greater than the inflation rate in Sweden, other things held constant, the Swedish currency will

a. Appreciate against the U.S. dollar.
b. Depreciate against the U.S. dollar.
c. Remain unchanged against the U.S. dollar.
d. Appreciate against other major currencies.
e. Appreciate against the dollar and other major currencies.

23. If one Swiss franc can purchase $0.71 U.S. dollars, how many Swiss francs can one U.S. dollar buy?

a. 0.71
b. 1.41
c. 1.00
d. 2.81
e. 0.50

24. If the spot rate of the French franc is 5.51 francs per dollar and the 180-day forward rate is 5.97 francs per dollar, then the forward rate for the French franc is selling at a ________________ to the spot rate.

a. premium of 8%
b. premium of 18%
c. discount of 18%
d. discount of 8%
e. premium of 16%

25. The relationship between the exchange rate and the prices of tradable goods is known as the:

a) Purchasing-power-parity theory
b) Asset-markets theory
c) Monetary theory
d) Balance-of-payments theory

26. If wheat costs $4 per bushel in the United States and 2 pounds per bushel in Great Britain, then in the presence of purchasing-power parity the exchange rate should be:

a) $.50 per pound
b) $1.00 per pound
c) $2.00 per pound
d) $8.00 per pound

27. A primary reason that explains the appreciation in the value of the U.S. dollar in the 1980s is:

a) Large trade surpluses for the United States
b) High inflation rates in the United States
c) Lack of investor confidence in the U.S. monetary policy
d) High interest rates in the United States

28. When the price of foreign currency (i.e., the exchange rate) is above the equilibrium level:

a) An excess supply of that currency exists in the foreign exchange market
b) An excess demand for that currency exists in the foreign exchange market
c) The supply of foreign exchange shifts outward to the right
d) The supply of foreign exchange shifts backward to the left

29. The international exchange value of the U.S. dollar is determined by:
a) The rate of inflation in the United States
b) The number of dollars printed by the U.S. government
c) The international demand and supply for dollars
d) The monetary value of gold held at Fort Knox, Kentucky

30. Which of the following is an example of foreign exchange?
e) Exchange of cash issued by a foreign central bank.
f) Exchange of claims denominated in another currency.
g) Exchange of bank deposits.
h) All of the above.

31. Which of the following are usual suppliers of Euros?
e) US foreign investors remitting profits.
f) European direct investors.
g) US exporters.
h) All of the above.

Write "T" against the statements which are true and "F" against those which are false.

32. Accepting deposits is an essential function of a modern commercial bank.

33. Granting loan to the borrowers is not the main function of a bank.

34. Ancillary services are also known as supplementary functions of a commercial bank.

35. General utility services are called non-banking services.

36. Services rendered by banks to the general public constitute the main function of banks.

37. Bank charges some amount for the services rendered.

38. Bank cannot buy and sell shares and debentures on behalf of customers.

39. Bank stands guarantee against loan raised by its customers from other financial institutions.

40. Is there a central location for the Forex Market?

Global Corporate Social Responsibility and Sustainable Management

Assignment A

Q1: What is social audit and what is its relevance for business organization?

Q2: What do you understand by business ethics and how it is important for the business?

Q3: What do you understand by Sustainable Development? What are its objectives and components?

Q4: Give a brief overview of Dimensions of Social Responsibility.

Q5: Explain the concept of Corporate Governance and show its relation with Social Responsibility of Business.

Assignment B

BHARAT PETROLUEM

Introduction

Bharat Petroleum Corporation Limited (BPCL) is a downstream oil refining and marketing company. The company has its network spread over all the four regions in India and is represented in almost all markets. It caters to different petroleum sectors - Liquefied Petroleum Gas (LPG) and Kerosene for domestic consumption, automotive fuels and lubricants for vehicles, and feedstock and fuels for industrial applications. The company also manufacture petrochemicals like Benzene, Toluene, Linear Alkyl Benzene feedstock etc. With a sales turnover of Rs. 25,650 crore and profits of Rs. 701.30 crore in 1999, BPCL is the 5th largest company by sales in India. Its strength lies in an efficient refinery and strong distribution network, which has given it a 20% market share in petroleum products in India. BPCL has a tie up with Shell Petroleum Co. of Netherlands to manufacture and market Shell lubricants in India. In a major expansion move, BPCL is increasing its refining capacity through 3 joint ventures and also adding on to its distribution strength by laying a similar number of pipelines. BPCL is also planning a foray into petrochemicals through a 1.8 million tonnes (mt) naphtha craker plant in Tamil Nadu for around Rs. 7,000 crore and this project is scheduled to go on stream by 2002.

Ecological Concern

BPCL has been continuously striving towards conservation and improvement of the environment by adopting new technologies. In March 2003, BPCL introduced low lead MS (with 0.15 gm of lead per liter) in the country. From April 1996, HSD with a maximum sulphur content of 0.5% by weight, was introduced in the metro cities and in the Taj Trapezium. From September 1996, HSD, with a maximum sulphur content of 0.25% by weight, was introduced in the Taj Trapezium. To meet the requirement of HSD all over the country with the revised specification of maximum sulphur content of 0.25% by weight, from April 1999, facilities for Diesel Hydro De-sulphurisation are being put up in the refinery. Distribution of other low sulphur fuels (which has maximum sulphur content of 1.8% by weight) was started in the National capital region from October 1996, which ended the use on High Sulphur FO and RFO. BPCL conducted two advertising compaigns of behalf of the industry - the first on the importance of LPG conservation and the second on the introduction of low leaded petrol. On the pollution control front, BPCL has set up a special sophisticated plant to meet the stringent standards set by Minimum National Standards for Effluents from Oil Refineries (MINAS). BPCL's emission standards are far more stringent than the limits laid down by the Pollution Control Board. BPCL had also invested around Rs. 220 crore, in pollution abatement and energy conservation systems.

Safety and Social Commitments.

Safety continued to be accorded the highest priority in BPCL both in refining and marketing operations. In 2002-03, its refinery achieved 3 million man-hours without Lost Time Accident (LTA) on one occasion and one million man-hours without LTA on two occasions. The microprocessor based control system as its refinery monitors the operating conditions for safety hazards and the refinery is divided into three separate areas as high risk, low risk and medium risk. Each employee, irrespective of levels, is given fire-fighting training and mock drills are carried out at quarterly intervals for different range fires. Employees are given training on simulators so that they learn by committing mistakes on simulators and not in real conditions. BPCL's Mumbai refinery has a Mutual Aid agreement along with the neighboring 9 industries for fighting major fires.

As a result of higher exposure to various safety awareness programs, there has been a reduction of injuries in BPCL's refinery by 34% for its own employees, and 43% for contractors' employees, in 1996-97. Moreover the frequency of LTA has come down from 1.5% to 0.6% for its employees and from 5.6% to 1.7% for contractors employees. To enhance safety performance, BPCL introduced ‘safety by walk-around' concept wherein experienced officers were appointed as safety surveyors and safety sampling was done by senior management staff. It also organized a safety symposium at its refinery in which members from the oil industry, government bodies. Oil awareness on LPG safety, BPCL also screened one-minute films on the safe handling of LPG, on popular TV channels.

BPCL sponsors many sporting events like Santosh Trophy, National Football Tournament, and also coaching camps for youngsters. Lifeline Express was contributed to social welfare - a fully equipped train, which look the latest medical technology to remote villages of India. The company has also adopted 11 Scheduled caste/Scheduled tribes villages under the Component and Tribal sub-plan. The facilities provided by the company include community centers, tube/borewells, educational support medical facilities, vocational guidance and training to make villagers self-reliant and improve their standard of living.

Achievements

BPCL was adjudged the winner of the ‘Oil Industry Safety Awards' for its safety performance being the best among all the "LPG Marketing Organization in 1995-96" for the fourth year in succession. BPCL's annual report for 1994-95 was selected by ICAI as the best presented amongst the public sector/joint sector companies for the second year in succession. The South Asian Federation of Accountants also adjudged the same as the second best presented in the non-financial sector in the SAARC region. BPCL received ISO-9002 certification from Bureau Veritas Quality International (BVQI) for 15 out of its 22 bottling plants. BPCL has also received ISO-9002 accreditation for its refinery, aviation service stations at Mumbai, Delhi, Calcutta and Bangalore depots at Miraj and Mysore and lubricants blending plant at Wadilube.

Q1: What are the Social Commitments of Bharat Petroleum?

Q2: What are the Ecological Concerns projected by Bharat Petroleum?

Q3: Has Bharat Petroleum benefitted from showing responsibility towards the environment?

Assignment C

1. Sustainable development is defined as:
a) Development to deplete the natural resources
b) To completely use up the natural resources by the present generation
c) To degrade quality of human life
d) Development, which meets the needs of the present without compromising the ability of future generations to meet their own needs

2. Sustainable activities are those which
a) Use materials in continuous cycles.
b) Use reliable sources of energy continuously.
c) Use the positive and just side of human personality.
d) All of the above

3. Today's environmental problems are largely the consequence of
a) Management of Waste Products
b) Sustainable Consumption of natural resources
c) the unsustainable consumption of natural resources and the mismanagement of waste products
d) Re-use and Recycling of products

4. The HDI is computed from:
a) gross domestic production per capita, adjusted for local purchasing power
b) life expectancy at birth
c) Literacy
d) All of the above

5. The positivist approach was studied in terms of
a) Environment Protection
b) FDI
c) HDI
d) GDP/GNP

6. The goal of sustainable agriculture is to :
a) Degrade Environment
b) Increase Pollution
c) maintain production at levels necessary to meet the increasing aspirations of an expanding world population without degrading the environments.
d) Decrease Productivity

7. Sustainability Indicators include:
a) crop yields,
b) productivity,
c) nutrient status
d) All of the above

8. The major advantage of crop diversification is
a) reduced erosion,
b) reduced soil fertility,
c) maximization of risk, and
d) decreased yield

9. CSR is about how companies :
a) manage the business processes to produce an overall positive impact on society
b) increase profits
c) Harm the environment
d) Have a negative impact on society

10. Companies who are willing to ____ are committed:
a) provide information that is incredible
b) provide information that is ambiguous
c) provide information that is credible
d) provide information that is unverifiable

11. CSR will advance ___ across sectors
a) Profitably
b) Inconsistently
c) Consistently
d) ecologically

12. Assessment of social environment is an integral part of

a) maximization of profits
b) ensuring CSR
c) degrading the environment
d) ensuring political stability

13. The following act deals with welfare of the employees:
a) Factories Act
b) the Employees Statement Insurance Act, 1948.
c) Employees Provident Fund
d) All of the above

14. Social accounting is:
a) the systematic assessment and reporting on those aspects of a company as activities that have a political impact
b) the systematic assessment and reporting on those aspects of a company as activities that have an economic impact
c) the systematic assessment and reporting on those aspects of a company as activities that have a technical impact
d) the systematic assessment and reporting on those aspects of a company as activities that have a social impact

15. The Social Income Statement is divided into:
a) Social Benefits and Costs to Staff
b) Social Benefits and Costs to Community
c) Social Benefits and Costs to General Public
d) All of the above

16. The socio-economic operating statement should be prepared
a) along with the temperature of the place
b) along with the financial statements of the company
c) along with the political statements
d) along with the technical statements

17. Social audit refers to
a) the process involving a retrospective review of the impact or contribution of a company to the recognized political dimensions
b) the process involving a retrospective review of the impact or contribution of a company to the recognized technical dimensions
c) the process involving a review of the impact of a company to the recognized social dimensions
d) the process involving a retrospective review of the impact or contribution of a company to the recognized economic dimensions

18. ITC has set up ____ to fulfill its CSR
a) CFC
b) GHG
c) e choupals
d) All of the above

19. Ethical behavior is:
a) a short term strategy
b) a Long term strategy
c) a short and long term strategy
d) a medium term strategy

20. Morality is the standard
a) which individual or group determine about deciding what is right or wrong and good or evil
b) which individual or group determine about deciding what should be done
c) which individual or group determine about deciding what gives highest profits
d) which individual or group determine about deciding what brings dissatisfaction

21. Business Ethics concentrate on
a) on profitable standards as they apply to business policies, institutions and behaviour
b) on moral standards as they apply to business policies, institutions and behaviour
c) on political standards as they apply to business policies, institutions and behaviour
d) on technical standards as they apply to business policies, institutions and behaviour

22. Free markets are justified from ethical point of view because
a) they allocate resources and distribute commodities in ways that are just
b) they maximize the economic utility of society's members
c) they respect the freedom of choice of both buyers and sellers
d) All of the above

23. Corporate Governance can be defined
a) as a systematic process by which companies are directed and controlled to enhance their wealth generating capacity
b) as a unsystematic process by which companies are directed and controlled to enhance their wealth generating capacity
c) as a systematic process by which companies are directed and controlled to enhance their space
d) as a systematic process by which companies are directed and controlled to enhance their political contacts

24. Cadbury Committee was set up by ___ in ____
a) Tokyo Stock Exchange, 1980
b) Singapore Stock Exchange, 1985
c) London Stock Exchange, 1991
d) None of the above

25. Naresh Committee was a result of
a) Satyam Fiasco
b) Enron Fiasco
c) Arcelor Mittal amalgamation
d) Microsoft emergence

26. To be a public enterprise
a) Government should have no role
b) Government should have 51% ownership of shares
c) it should be set outside the country
d) It should be privately owned

27. Characteristics of a Socially responsible firm are:
a) Stuck to the basics and produced only high quality goods and services for specific market niches
b) Firmly practiced the dual principles of self-management and decentralization
c) Constantly solicited feedback from customers on all subjects from product direction to corporate donations
d) All of the above

28. Social audit is an outcome of (in increasing order)
a) Assessment& Evaluation, Identification, Measurement, Reporting
b) Identification, Assessment& Evaluation, Measurement, Reporting
c) Identification, Measurement, Assessment& Evaluation, Reporting
d) Reporting, Identification, Assessment& Evaluation, Measurement

29. Social Audit covers
a) Ethical Issues
b) Equal Opportunity
c) Quality of Life
d) All of the above

30. Which of the following is an unethical practice?
a) Selling Products less in demand in home countries
b) Selling products of use
c) Blue Marketing
d) Selling products at cost price

31. Counterfeiting refers to
a) printing money
b) stealing money
c) violating the patent and copyright of another firm
d) All of the above

32. Grey marketing refers to
a) selling grey coloured products
b) goods are imported and sold through market distribution channels not authorised by the manufacturer
c) Selling bad quality products
d) Selling same type of products

33. Comprehensive Audit tries to

a) measure, verify and evaluate the total performance of the organization including its profitability activities
b) measure, verify and evaluate the total performance of the organization including its technical activities
c) measure, verify and evaluate the total performance of the organization including its economic activities
d) measure, verify and evaluate the total performance of the organization including its social responsibility activities

34. Crisis Management is
a) the art of making decisions to head off or mitigate the effects of an event, when under stress
b) the art of protecting the environment when under stress
c) the art of increasing profits when under stress
d) the art of moving ahead technologically when under stress

35. Triple Bottom Line includes
a) People
b) Planet
c) Profit
d) All of the above

36. People refers to
a) increasing profits
b) harming the environment
c) fair and beneficial business practices toward labour and the community and region in which a corporation conducts its business
d) All of the above

37. Planet refers to
a) Earth
b) sustainable environmental practices
c) Using non renewable resources
d) Polluting the environment

38. Adding ecotourism or geotourism to an already rich tourism market such as the Dominican Republic- is an example of-
a) Reaching untapped market potential
b) misusing the environment
c) Marketing the place to increase pollution
d) increasing profits

39. Which of the following is a criticism of TBL?
a) Division of Labour
b) effectiveness
c) Nationalism
d) All of the above

40. Purpose of Sustainability Reporting is

a) Benchmarking
b) Demonstrating
c) Comparing
d) All of the above

E-Commerce

SECTION A:

Question 1: Explain B2B E-Commerce using an example of a book distributor who stocks a large number of books, which he distributes via a large network of book sellers. Assume that the distributor has stocks of books of a large number of publishers and book sellers order books as and when their stock is low. Distributors give 1 month's time to booksellers for payment.
Question 2: Explain the system architecture of E-Commerce by looking at it as a set of layers with the physical network at the bottom layer and applications at the top layer.

Question 3: What do you understand by EDI? Is EDI used in B2C or B2B E-Commerce? Why is EDI important in E-Commerce?

Question 4:Why is security important in E-Commerce? What are the security issues to be taken into account while designing a security system for E-Commerce?

Question 5: What types of electronic payment systems are required in E-Commerce? Why are there different types of payment systems? Explain the necessary characteristics of each type of payment system and give an example each of where it is used.

SECTION B:

Question 6: What three forces lead to the WWW's emergence as the single most dynamic force in information technology?
Question 7: Why is it so important to align the electronic commerce strategy with the overall business strategy?

Question 8: Give examples of how the supplier's information system can be used at every link in the value chain by the customer?
Question 9:Define the following terms and discuss the Infrastructure needed for an E-Commerce Environment: (Nov'09)
(i) e-businesses
(ii) e-commerce
(iii) e-cooperation
(iv) e-information
(v) e-procurement
(vi) e-government

SECTION C

10.1 By Electronic Commerce we mean:
a. Commerce of electronic goods
b. Commerce which depends on electronics
c. Commerce which is based on the use of internet
d. Commerce which is based on transactions using computers connected by telecommunication network

10.2 For carrying out B2B e-Commerce the following infrastructure is essential: (i) World Wide Web
(ii) Corporate network
(iii) Electronic Data Interchange standards
(iv) Secure Payment Services
(v)Secure electronic communication link connecting businesses
a. i, ii, iii
b. ii, iii, iv
c. ii, iii, iv, v
d. i, ii, iii, iv, v

10.3 For carrying out B2C e-Commerce the following infrastructure is essential (i) World Wide Web
(ii) Corporate network
(iii) Electronic Data Interchange standards
(iv) Secure Payment Services
(v) Secure electronic communication link connecting businesses
a. i, iv
b. i, iii, iv
c. ii, iii
d. i, ii, iii, iv

10.4 For carrying out C2C e-Commerce the following infrastructure is essential (i) World Wide Web
(ii) Corporate network
(iii) Electronic Data Interchange standards
V. Rajaraman/IISc. Bangalore M13/V1/July 04/1
System Analysis and Design/Electronic Commerce Multiple Choice Questions
(iv) Secure Payment Services
(v)Secure electronic communication link connecting businesses
a. i and ii
b. ii and iv
c. i and iii
d. i and iv

10.5 Advantages of B2C commerce are (i) Business gets a wide reach to customers
(ii) Payment for services easy
(iii)Shop can be open 24 hours a day seven days a week
(iv)Privacy of transaction always maintained
a. i and ii
b. ii and iii
c. i and iii
d. iii and iv

10.6 B2C commerce
a. includes services such as legal advice
b. means only shopping for physical goods
c. means only customers should approach customers to sell
d. means only customers should approach business to buy

10.7 Advantages of B2C commerce to customers are (i)wide variety of goods can be accessed and comparative prices can be found
(ii) shopping can be done at any time
(iii)privacy of transactions can be guaranteed
(iv)security of transactions can be guaranteed
a. i and ii
b. ii and iii
c. iii and iv
d. i and iv

10.8 Disadvantages of e-Commerce in India are (i) internet access is not universally available
(ii) Credit card payment security is not yet guaranteed
(iii) Transactions are de-personalized and human contact is missing
(iv) Cyberlaws are not in place
a. i and ii
b. ii and iii
c. i, ii, iii
d. i, ii, iii, iv

10.9 Electronic Data Interchange is necessary in
a. B2C e-Commerce
b. C2C e-Commerce
c. B2B e-Commerce
d. Commerce using internet

10.10 EDI requires
a. representation of common business documents in computer readable forms
b. data entry operators by receivers
c. special value added networks
d. special hardware at co-operating Business premises

10.11 EDI standards are
a. not universally available
b. essential for B2B commerce
c. not required for B2B commerce
d. still being evolved

10.12 EDIFACT is a standard
a. for representing business forms used in e-Commerce
b. for e-mail transaction for e-Commerce
c. for ftp in e-Commerce
d. protocol used in e-Commerce

10.13 EDIFACT standard was developed by
a. American National Standard Institute
V. Rajaraman/IISc. Bangalore M13/V1/July 04/3
System Analysis and Design/Electronic Commerce Multiple Choice Questions
b. International Standard Institute
c. European Common Market
d. United Nations Economic Commission for Europe

10.14 ANSI X.12 is a standard developed by
a. American National Standard Institute
b. International Standard Institute
c. European Common Market
d. United Nations Economic Commission for Europe

10.15 In B2B e-Commerce
(i) Co-operating Business should give an EDI standard to be used
(ii) Programs must be developed to translate EDI forms to a form accepted by application program
(iii) Method of transmitting/receiving data should be mutually agreed
(iv) It is essential to use internet
a. i, ii
b. i, ii, iii
c. i, ii, iii, iv
d. ii, iii, iv

10.16 EDI use
a. requires an extranet
b. requires value added network
c. can be done on internet
d. requires a corporate intranet

10.17 EDI over internet uses
a. MIME to attach EDI forms to e-mail messages
b. FTP to send business forms
c. HTTP to send business forms
d. SGML to send business forms

10.18 For secure EDI transmission on internet
a. MIME is used
b. S/MIME is used
V. Rajaraman/IISc. Bangalore M13/V1/July 04/4
System Analysis and Design/Electronic Commerce Multiple Choice Questions
c. PGP is used
d. TCP/IP is used

10.19 EDI standard
a. is not easily available
b. defines several hundred transaction sets for various business forms
c. is not popular
d. defines only a transmission protocol

10.20 By security in e-Commerce we mean
(i) Protecting an organization's data resource from unauthorized access
(ii)Preventing disasters from happening
(iii) Authenticating messages received by an organization
(iv) Protecting messages sent on the internet from being read and understood by unauthorized persons/organizations
a. i, ii
b. ii, iii
c. iii, iv
d. i, iii, iv

10.21 A firewall is a
a. wall built to prevent fires from damaging a corporate intranet
b. security device deployed at the boundary of a company to prevent unauthorized physical access
c. security device deployed at the boundary of a corporate intranet to protect it from unauthorized access
d. device to prevent all accesses from the internet to the corporate intranet

10.22 A firewall may be implemented in
a. routers which connect intranet to internet
b. bridges used in an intranet
c. expensive modem
d. user's application programs

10.23 Firewall as part of a router program
a. filters only packets coming from internet
V. Rajaraman/IISc. Bangalore M13/V1/July 04/5
System Analysis and Design/Electronic Commerce Multiple Choice Questions
b. filters only packets going to internet
c. filters packets travelling from and to the intranet from the internet
d. ensures rapid traffic of packets for speedy e-Commerce

10.24 Filtering of packets by firewall based on a router has facilities to
a. i, iii
b. i, ii, iii
c. i, ii, iii, iv
d. ii, iii, iv

10.25 Main function of proxy application gateway firewall is
a. to allow corporate users to use efficiently all internet services
b. to allow intranet users to securely use specified internet services
c. to allow corporate users to use all internet services
d. to prevent corporate users from using internet services

10.26 Proxy application gateway
(i) acts on behalf of all intranet users wanting to access interne securely
(ii)monitors all accesses to internet and allows access to only specified IP addresses
(iii) disallows use of certain protocols with security problems
(iv) disallows all internet users from accessing intranet
a. i, ii
b. i, ii, iii
c. i, ii, iii, iv
d. ii, iii, iv

10.27 A hardened firewall host on an intranet
(i) has a proxy application gateway program running on it
(ii)Allows specified internet users to access specified services in the intranet
(iii) Initiates all internet activities requested by clients and monitors them
(iv) prevents outsiders from accessing IP addresses within the intranet
a. i, ii
b. i, ii, iii
c. i, ii, iii, iv
d. ii, iii, iv

10.28 A hardened firewall host on an Intranet is
a. a software which runs in any of the computers in the intranet
b. a software which runs on a special reserved computer on the intranet
c. a stripped down computer connected to the intranet
d. a mainframe connected to the intranet to ensure security

10.29 By encryption of a text we mean
a. compressing it
b. expanding it
c. scrambling it to preserve its security
d. hashing it
10.30 Encryption is required to
(i) protect business information from eavesdropping when it is transmitted on internet
(ii)efficiently use the bandwidth available in PSTN
(iii) to protect information stored in companies' databases from retrieval
(iv) to preserve secrecy of information stored in databases if an unauthorized person retrieves it
a. i and ii
b. ii and iii
c. iii and iv
d. i and iv

10.31 Encryption can be done
a. only on textual data
b. only on ASCII coded data
c. on any bit string
d. only on mnemonic data

10.32 By applying permutation (31254) and substitution by 5 characters away from current character (A ?? F , B ?? G etc..) the following string ABRACADABRA becomes
a. FGWCAAADRBF
b. RABCAAADRBF
c. WFGHFFFIWGF
d. None of the above

10.33 The following ciphertext was received. The plaintext was permuted using permutation (34152) and substitution. Substitute character by character +3 (A - D, etc). The plain text after decryption is: Cipher text : PDLJDLXHVQC
a. MAIGAIUESNZ
b. IAMAGENIUSZ
c. LDPDJHPLXVZ
d. IAMAGENIUSC

10.34 By symmetric key encryption we mean
a. one private key is used for both encryption and decryption
b. private and public key used are symmetric
c. only public keys are used for encryption
d. only symmetric key is used for encryption

10.35 The acronym DES stands for
a. Digital Evaluation System
b. Digital Encryption Standard
c. Digital Encryption System
d. Double Encryption Standard

10.36 DES works by using
a. permutation and substitution on 64 bit blocks of plain text
b. only permutations on blocks of 128 bits
c. exclusive ORing key bits with 64 bit blocks
d. 4 rounds of substitution on 64 bit blocks with 56 bit keys

10.37 DES
(i) is a symmetric key encryption method
(ii)guarantees absolute security
(iii) is implementable as hardware VLSI chip
(iv) is a public key encryption method
a. i and ii
b. ii and iii
c. i and iii
d. iii and iv

10.38 DES using 56 bit keys
a. Cannot be broken in reasonable time using presently available computers
b. Can be broken only if the algorithm is known using even slow computers.
c. Can be broken with presently available high performance computers.
d. It is impossible to break ever.

10.39 Triple DES uses
a. 168 bit keys on 64-bit blocks of plain text
b. Working on 64-bit blocks of plain text and 56 bit keys by applying DES algorithm for three rounds.
c. Works with 144 bit blocks of plain text and applies DES algorithm once.
d. Uses 128 bit blocks of plain text and 112 bit keys and apply DES algorithm thrice.

10.40 ripple DES
a. Cannot be broken in reasonable time using presently available computers.
b. Can be broken only if the algorithm is known using even slow computer.
c. Can be broken with presently available high performance computers.
d. It is impossible to break ever.

Growth Prospects of Thrust Areas of Indian Exports

Assignment A

1. Describe the composition of India's exports. Discuss India's the key objectives and strategies of India's Foreign Trade Policy 2009-2014?

2. What are the benefits and facilities provided to units located in Special Economic Zone (SEZ)?

3. Describe the avenues and prospects for India's leather and leather goods exports. What are the competitive advantages and disadvantages of leather and leather goods exports?

4. Explain the constraints that are hampering effective export promotion effort in India.

5. What are the various items of agricultural commodities exporting from India? Explain the measures initiated by the government to enhance agricultural exports.

Assignment B

1. Write notes on the following:
a. MDA and MAI Scheme
b. India's export of services

2. Discuss the initiatives taken by the Indian government in promoting India's trade with Latin American Countries?

3. Analyze briefly how India's trade has developed with European Union (EU) during the last decade. What are the likely implications of the expansion of EU on the Indian exports?

Case Study: India's Food Processing Industry

Background

While the Indian economy's growth in the recent years, has been propelled by the growth of the service and manufacturing sectors, agriculture still plays a significant role by contributing 17% of the GDP and providing employment to 60% of the population. With the increasing focus and investments from the large national and international food and retail companies, the sector is bound to grow much faster in the coming years. As this sector has a strong social implication, it has also been accorded a high priority status by the Government, which is facilitating its growth by charting favorable initiatives at different policy levels. The changing consumption dynamics coupled with the growth of modern retail, the processed food industry offers tremendous opportunities for all stakeholders in the areas of production, processing, marketing, supply chain, infrastructure development, technology up gradation and education.

Food Industry Overview

The size of the Indian food industry is estimated at about US$ 236 bn. It is growing at about 5% year on year (YoY) and will reach US$ 314 bn by 2015. The processed food segment's contribution is currently at about 43% i.e. US$ 120 bn, this is expected to grow much faster, and contribute about 50% to the total food market by 2015. The processed food industry is highly fragmented and is dominated by the unorganized sector. The organized food processing segment contributes about 30% of the market; however with the entry of large players both domestic and international, the market is expected to growing at 25% per annum and will account for 40% of the market by the next 5 years. At the moment the Indian food market is still dominated by the staples like wheat, rice and pulses followed by fruits & vegetables and dairy products with minimal value addition before being consumed by the masses. Though India has a strong agricultural production base, the wastage in the sector is very high. The lack of storage & processing facilities leads to significant wastage, especially in categories like fruit and vegetables with an estimated wastage of about 35% (estimated value of US$ 8 bn annually). The level of food processing varies considerably across sub-sectors in the country. In the case of perishables like fruit and vegetables, only 2% of production is processed, it is more than 90% of non perishable products such as cereals and pulses. However, the processing in staples involves very little value addition, and is mostly confined to grading, cleaning, milling, and packing; with negligible use of additives, preservatives, and flavours etc.

Major Initiatives

Government Initiatives

The Ministry of Food Processing Industries (MoFPI) is the nodal agency established by the Government to ensure development of the food processing sector in India. The key objectives of the MoFPI includes improving utilization & value addition of farm produce, minimizing wastage, technology introduction & upgrades, promoting R&D, initiatives for policy development and development of critical infrastructure for supply chain. With an intention to grow the food processing sector, the Government has made a sharp increase in the plan outlay and expenditure in the last couple of years and has approved outlays of over US$ 1 bn in the 11th plan.

Policy Initiatives
To help promote the food processing industry, the Government has over the years taken various policy initiatives. Key policy initiatives include:

- Exemption of most processed food items (except items reserved for SSI & Alcoholic Beverages) from purview of licensing under the Industries (Development & Regulation) Act, 1951

- Food processing industry covered under priority sector bank lending

- Foreign investments of up-to 100% allowed under the automatic route

- Excise & Customs Duty reduction in processed items & plant and machinery

- Income Tax holiday for certain categories of processing industries

- Delegation of licensing powers to regional authorities

Infrastructure Initiatives

One of the major factors hindering the growth of the food processing industry relates to inadequate infrastructure. To meet this challenge of inadequate infrastructure, the MoFPI in its 10th Plan has focused on developing various food related infrastructure that include:

- Food Parks - This initiative of the Government is targeted to provide common infrastructure for the industry. As per the 10th Plan schedule a total of 56 Food Parks were planned. The 11th Plan has a target of establishing 30 mega food parks across the country. The key objectives of this initiative includes providing infrastructure, support value addition of agricultural commodities, establish raw material supply chain, induction of latest technology, integration of complementary resources and improved quality assurance.

- Integrated Cold Chain Facility - This scheme is targeted to improve viability of cold storages and add capacity.

- Packaging Centre - The Government intends to develop packing centers facilities so as to help enhance the shelf life of food products and bring international acceptability.
- Value Added Centre - The value addition centre's are intended to bring about value addition leading to higher realization along with enhancing shelf life.

- Irradiation Facilities - The meet the challenges brought about by infestation, the Government has plans to setup irradiation facilities.

- Modernization of Abattoir - For the 11th Plan, the Government is planning a comprehensive scheme for modern abattoirs across the country.

Growth Drivers

The changes in the consumer preferences and inclinations have had a definite impact on the level and directions of food processing. The reasons for the change in the Indian consumer are:

- Rising Income Levels - In India, the per capita income has almost doubled in the last 7 years and is now about US$ 1000 per annum. The consistent rise in the middle class income has resulted in a consuming class with higher disposable income.

- Changing Food Habits - With growing affluence, the eating out incidences has increased in the urban India. The ‘Young India' is also experimenting with new tastes and preferences and tastes are getting diffused across geographies. Pan-Indian cuisines as well as cuisines from other countries have also found their way into people's kitchen across the country. There is a growing trend towards balanced and health consciousness diet in the new generation of consumers.

- Growing Need for Convenience Food - Increased income levels, urbanization and a greater proportion of urban working women in India is leading to increased convenience-seeking behaviour of Indian consumers. There has been an increasing demand for processed & convenience foods such as in ready-to-eat, ready-to-cook, ready-to-serve and ready-to heat categories.

- Growth in Organized Retailing - The organized retail accounts for about 1.5% of the total food & grocery market in the country, however with growing investments in this sector, it is expected that the organized retail will account for more than 7.5% of the market by 2013. The organized retail with modern supply chain and temperature controlled stocking will lead to increased distribution of imported foods, branded foods and processed foods etc.

Challenges Faced

The Indian food processing industry currently faces a lot of challenges addressing current gaps in the value chain as well as leveraging on various advantages the country provides. Investors in the sector need to be aware of these factors and build required capabilities in their business to ensure success.

- Fragmented Supply Base - Indian agriculture is predominantly a production driven market supply instead of market driven production, leading to inconsistency in quality of produce and supply. With more than 70% of the landholding smaller than 1.5 hectares, the average land holding in India is very small leading to poor economy of scale for the farmers to apply modern techniques in their farms.

- Poor Quality Control - Though Indian growers and exporters have now been able to match up to global standards, meeting these standards with up-scaled production will be big challenge. The challenge becomes much bigger where there are differences in standards and consumer preferences across potential markets. The issues of traceability in fresh produce and poor hygiene generated infections in packaged foods need to be addressed.

- Inadequate Infrastructure and Supply Chain - While India is the leading producer of many of the crops in the world, nearly 25% to 35% of this production is spoiled due to the lack of inadequate supply chain and poor infrastructure. Non-availability of core infrastructure like high-tech controlled production facilities, grading, packaging, cold chains, logistics, warehousing, integrated processing units, inefficient supply chain, poor transportation and erratic power supply are the major concerns in the country. Also, there are very few specialized distribution companies, providing refrigerated transport and warehousing for perishable produce/ processed food products.

- Food Regulations and Taxation Issues - Both the Indian food industry and the processing industry are governed by multiple legislations. Though many initiatives have already been taken by the Government, there is still need and scope for harmonization of taxation norms and systems across the country.

- Limited Market Linkages - The food value chain in India is highly fragmented leading to poor quality, lower price realization and increased wastage of produce at the farm level. Improvement in the marketing infrastructure and also identification of new export markets for their produce, are the two major issues facing the industry.

Key Success Factors

- Growth of Domestic Market - The overall penetration of processed foods in the domestic market is low. This leads to a large untapped market with propensity to consume processed food.

- Appropriate Product Concept - For any successful business, it is important to have the right product concept that meets consumer expectations and the food industry is no exception. Innovative products, leading edge technology, fast hanging consumer needs and preferences, are all aspects that need to be focused.

- Competitive Pricing of Products - Processed food companies need to understand the price sensitivityof the Indian consumer. The market demand is for competitively priced products with multiple pack sizes & price points.

- High Quality Raw Material with Sustainable Supply Chain - This is the first and foremost prerequisite to determining the final quality of a product. In the food industry, the supply chain has to be sustainable so that the right quality product reaches the consumer.

- World Class R&D and Manufacturing Resources - In a global business environment to keep pace with fast changing technology/ innovations, it is essential have a world class R&D and manufacturing facility. This is the key to building capacity.

- A Qualified Manpower Resource - Adequate resource of qualified manpower is another aspect ofcapacity building and is a very important asset for success in business.

- Safe and Healthy Products - Consumption of food products pertain directly to the health of people. Hence, it is of utmost importance to have quality systems like Hazard Analysis & Cuticle Control Points (HACCP) to deliver safe and healthy products to consumers.

- Continuous Investment in Training and Technology Up-Gradation - This is a vital step to capacity building and is applicable to the food industry as well.

- Innovative Packaging - In a highly competitive business environment, innovative packaging is another important facet of capacity building that can provide a leading edge.

- Conducive Regulatory Framework - In addition to the above, proactive support from lawmakers to amend and modify laws that accommodate new innovations Genetically Modified Organism (GMO),concepts (Nutraceuticals) etc is critical for capacity building in the food industry.

Creating Appropriate Market Environment

To be a market leader, it is essential for the industry to create an appropriate market environment for selling products. These are exciting times for the food processing industry in India, and the opportunity to enter the market is huge. The domestic market consumption is changing and the level of processing will increase significantly, and at the same time, India remains disproportionately a small player in the export market compared to its production capability in various raw products. The opportunity is also huge for back-end infrastructural companies, as product and brand companies looking at increasing investments in this sector

Questions:

a) Agriculture sector contributes approximately 17% to the GDP of India. It is hence one of the thrust sectors for promoting exports. Discuss the nature and composition of exports from your respective country?

b) The article above mentions several growth drivers for India's food processing Industry. Briefly describe the factors that are likely to influence the growth of food processing industry in your respective country?

c) Outline the challenges faced by Indian food processing industry?

d) Discuss the initiatives taken by Indian government to promote the growth of food processing industry?

Assignment C

1) The Foreign Trade Policy in India is announced by
A. Ministry of Finance, Government of India
B. Ministry of Commerce, Government of India
C. Ministry of External Affairs, Government of India
D. Director General of Foreign Trade

2) Which of the following is NOT a part of the European Union?
A. France
B. Germany
C. Iceland
D. Slovenia

3) Focus LAC programme lays emphasis on India's major trading partners. The major trading partners include:
A. Brazil, Venezuela, Chile
B. Argentina, Peru, Colombia
C. Bahamas, Trinidad, Ecuador
D. All of the above

4) Export Promotion Capital Goods (EPCG) Scheme is for:
A. Import of Raw Materials by Manufacturers
B. Import of Capital Goods by Manufacturers and Merchant Exporters
C. Export of Capital Goods by Manufacturers only
D. Export and Import of Capital Goods by merchant as well as manufacturers

5) APEDA is associated with:
A. Promotion of agriculture and improving agricultural practices
B. Promotion of exports of packaged products from India
C. Promotion of exports agricultural and processed food products
D. Promotion of exports of organic agricultural products from India

6) Foreign Trade (Development and Regulation) Act, was introduced in:
A. 1991
B. 1992
C. 2002
D. 2004

7) DGCI&S is:
A. Director General of Commercial Intelligence and Statistics
B. Directorate General of Commercial Intelligence and Statistics
C. Director General of Central Improvement and States
D. None of the above

8) The objectives of Foreign Trade Policy 2004-2009 were:
A. To double India's percentage share of global merchandise trade by 2009; and
B. To act as an effective instrument of economic growth by giving a thrust to employment generation, especially in semi-urban and rural areas
C. Both A and B
D. None of the above

9) MDA refers to _______________:
A. Market Development Assistance
B. Market Discovery Assistance
C. Marketing Development Assistance
D. None of the above

10) The objectives of MDA are to:
A. Assist Export Promotion Councils (EPCs) to undertake export promotion activities for their product(s) and commodities
B. Assist Focus export promotion programmes in specific regions abroad like FOCUS (LAC), Focus (Africa), Focus (CIS) and Focus (ASEAN + 2) programmes.
C. Assist approved organizations/trade bodies in undertaking exclusive nonrecurring innovative activities connected with export promotion efforts for their members
D. All of the above

11) Which of these is the eligible activity for assistance provided under MAI scheme?
A. Assist exporters for export promotion activities abroad
B. Residual essential activities connected with marketing promotion efforts abroad.
C. Opening of Showrooms & Warehouses
D. Assist approved organizations in undertaking exclusive nonrecurring innovative activities connected with export promotion efforts

12) Under MAI scheme, financial assistance MAY NOT be provided to:
A. Export Promotion Councils
B. All individual exporters
C. Registered Trade Promotion Organisation
D. Commodity Boards

13) Which of these countries is NOT a part of Focus LAC programme?
A. Barbados
B. Guyana
C. British Virgin Islands
D. Fiji

14) FOCUS LAC programme is to promote India's trade with:
A. Least-developed African countries
B. Latin American Countries
C. Both A and B
D. None of the above

15) Which of these commodities is NOT a principal commodity exported by India:
A. Gems & Jewellery
B. Textiles
C. Pulses
D. Engineering Goods

16) Which of these is a ‘thrust sectors for exports', as identified by the Government of India include:
A. Leather and Leather goods
B. Chemicals
C. Education Services
D. Petroleum products

17) There are 9 Commodity Boards for all EXCEPT one of the following commodities:
A. Coffee
B. Tea
C. Rubber
D. Wheat

18) Which of these is NOT an incentive provided to units in an SEZ?
A. Duty free import/domestic procurement of goods for development, operation and maintenance of units
B. Exemption from export commitments
C. Exemption from Central Sales Tax
D. Exemption from Service Tax

19) Which of these is the correct combination for minimum area requirements for setting up a SEZ?

A. 1A; 2B; 3C; 4D
B. 1D; 2A; 3B; 4C
C. 1C; 2A; 3D; 4B
D. 1A; 2D; 3B; 4C

20) Export Credit Guarantee Corporation (ECGC) provides the following types of cover to the exporters?
A. Standard policies
B. Special policies
C. Financial guarantees
D. All of the above
21) The functions of India Trade Promotion Organisation (ITPO) include:
A. Providing information and market intelligence to the business community
B. Issuing insurance policies to exporters
C. Financing India's imports and exports
D. Providing financial guarantees to banks against the risks involved in providing credit to exporters

22) Indian Institute of Foreign Trade (IIFT) is located in?
A. New Delhi
B. Kolkata
C. New Delhi and Kolkata
D. None of the above

23) The products covered by APEDA include all, EXCEPT:
A. Meat and meat products
B. Seafood and marine products
C. Poultry and poultry products
D. Dairy products

24) There are 19 Export Promotion Councils. The products which are not covered by Export Promotion Councils are?
A. Basic Chemicals, Pharmaceuticals and Cosmetics
B. Gems and Jewellery, Leather and Leather goods
C. Coffee, Tea, Spices
D. Electronics & Computer software Engineering

25) The objectives of the Export Promotion Council for EOUs and SEZs (EPCES) are:
- To promote exports from India and to earn more foreign exchange for the country.
- To facilitate interaction between the exporting community and government both at the Central and State level
- To canalize financial assistance rendered by the Central Government to members for assisting their export market development efforts.
- All of the above
- None of the above

26) Asia's first Export Processing Zone (EPZ) was set up in:
A. Mumbai in 1965
B. Kandla in 1965
C. Chennai in 1965
D. Kolkata in 1965

27) Which of these are the purposes of setting up EOU's/ SEZs:
A. Promotion of investment - from domestic and foreign sources
B. Creating employment opportunities
C. Developing infrastructure facilities
D. All of the above
E. None of the above

28) Exports and Imports come under the purview of:
A. Ministry of Finance
B. Ministry of Commerce
C. Ministry of External Affairs
D. Ministry of International Affairs

29) Which one of the following is not a cause but a consequence of Globalisation?
A. Deregulation abroad
B. Integration of Markets
C. Greater institutionalization abroad
D. Greater Risk Exposure

30) An OBU set up in SEZ by a bank in India is subject to:
A. CRR/SLR stipulation of RBI
B. No Capital Adequacy Norms
C. No CRR/SLR stipulation of RBI
D. No restrictions from Government of India.

31) If a country is having more exports than imports in value terms, it can be said that the country is having:
A. BOP crisis
B. Deficit under BOT
C. Surplus under BOT
D. Surplus under BOP

32) An appreciation of the Rupee relative to the US Dollar would be expected to have which of the following effects?
A. Increase US exports to India
B. Increase US imports from India
C. Raise the cost to Americans for Indian imports
D. Create Balance of Payments surplus for India

33) India is among the 15 leading exporters of agricultural products in the world. It had a share of ____ per cent in world trade in agriculture in 2008.
A. 1.2
B. 0.76
C. 1.6
D. 1.8

34) The largest importer of agricultural products in 2008 was ____________?
A. European Union (27)
B. United States
C. Japan
D. China

35) The largest exporter of agricultural products in 2008 was ____________?
A. European Union (27)
B. United States
C. Brazil
D. Canada

36) Consumer food industry does not include:
A. packaged foods
B. packaged drinking water
C. alcoholic beverages
D. fresh fruits and vegetables

37) Challenges faced by India's gems and jewellery sector are:
A. Unorganized sector
B. Low level of R&D and product development
C. Possible Threats from China and from Other Countries Producing Diamonds
D. All of the above

38) Which of these is the strength of Indian Leather and Leather goods sector?
A. World-class institutional support for Design & Product Development, HRD and R & D
B. Presence of support industries like leather chemicals and finishing auxiliaries
C. Presence in major markets
D. All of the above

39) Which of these is NOT a focus product group for enhancing India‘s exports to the Latin American region:
A. Textiles including ready-made garments, carpets and handicrafts
B. Engineering products and computer software
C. Chemical products including drugs/pharmaceuticals
D. Gems and jewellery
E. All of the above

40) The state with the major share in production of leather and leather products is_________?
A. Tamil Nadu
B. Kerala
C. Manipur
D. Assam