International Business - International Business Practice Questions

41:  
Assertion (A). GATT was created to promote free trade.
Reason (R). Free trade always increases national welfare.
Code:
A.
If both A and R are true and R is the correct explanation of A
B.
If both A and R are true but R is Not the correct explanation of A
C.

If A is true but R is false

D.

If A is false but R is true

 
 

Option: C

Explanation :

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42:  

Assertion (A). IMP introduced adjustable peg system.

Reason JR). IMF tried to prevent uncontrolled fluctuation of foreign exchange
Codes:

 

 

 

 

 

A.
If both A and R are true and R is the correct explanation of A.
B.
If both A and R are true but R is Not the correct explanation of A
C.

If A is true but R is false

D.

If A is false but R is true

 
 

Option: A

Explanation :

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43:  
Assertion (A). India exports garments.
Reason (R). India has abundant labour and garments is a labour intensive product.
Codes:
A.
If both A and R are true and R is the correct explanation of A.
B.
If both A and R are true bu t R is Not the correct explanation of A
C.

If A is true but R is false

D.

If A is false but R is true

 
 

Option: B

Explanation :

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44:  
Asser tion (A). Free exchange rate in creases risk of exports
Reason (R). Speculation can reduce the risk of exporters.
Codes:
A.
If both A and R are true and R is the correct explanation of A.
B.
If both A and R are true but R is Not the correct explanation of A
C.

If A is true but R is false

D.

If A is false but R is true

 
 

Option: C

Explanation :

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45:  
Assertion (A). Adjustable peg allows flilctuation of 4.5%.
Reason (R). Crawling peg allows fluctuationof2%.
Codes:
A.
If both A and R are true and R is the correct explanation of A.
B.
Ifboth A and R are true but R is Not the correct explanation of A
C.

If A is true but R is false

D.

If A is false but R is true

 
 

Option: B

Explanation :

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