DAY – 47 (InstaTest-47): Insta 75 Days Revision Plan-2022: Topic – Economy, Tests 32, July 2021 CA – INSIGHTSIAS

Correct

Solution: A

The General Council convenes as the Dispute Settlement Body (DSB) to deal with disputes between WTO members. Such disputes may arise with respect to any agreement contained in the Final Act of the Uruguay Round that is subject to the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU). The DSB has authority to establish dispute settlement panels, refer matters to arbitration, adopt panel, Appellate Body and arbitration reports, maintain surveillance over the implementation of recommendations and rulings contained in such reports, and authorize suspension of concessions in the event of non-compliance with those recommendations and rulings.

The DSB is made up of all member governments, usually represented by ambassadors or equivalent. The current chair is Ambassador Dacio CASTILLO (Honduras).

 

Appellate Body

The Appellate Body was established in 1995 under Article 17 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU). It is a standing body of seven persons that hears appeals from reports issued by panels in disputes brought by WTO Members. The Appellate Body can uphold, modify or reverse the legal findings and conclusions of a panel, and Appellate Body Reports, once adopted by the Dispute Settlement Body (DSB), must be accepted by the parties to the dispute. The Appellate Body has its seat in Geneva, Switzerland.

Appellate Body Members and Secretariat 

The Appellate Body is composed of seven Members who are appointed by the DSB to serve for four-year terms, with the possibility of being reappointed once.

The Appellate Body membership shall be broadly representative of membership in the WTO. The Appellate Body receives administrative and legal support from the Appellate Body Secretariat.

Correct

Solution: C

An anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value.

What Are Countervailing Duties?

Countervailing Duties (CVDs) are tariffs levied on imported goods to offset subsidies made to producers of these goods in the exporting country.

CVDs are meant to level the playing field between domestic producers of a product and foreign producers of the same product who can afford to sell it at a lower price because of the subsidy they receive from their government.

 

The duty nullifies and eliminates the price advantage (low price) enjoyed by an imported product when it is given subsidies or exempted from domestic taxes in the country where they are manufactured.

 

The duty raises the price of the imported product, bringing it closer to its true market price. In this way, the government is able to provide a level playing field for domestic products.

 

The World Trade Organization (WTO) permits the imposition of countervailing duty by its member countries.

In India, the CVD is imposed as an additional duty besides customs on imported products when such products are given tax concession in the country of their origin.

 

Who imposes countervailing measures in India?

 

The countervailing measures in India are administered by the Directorate General of Anti-dumping and Allied Duties (DGAD), in the commerce and industry ministry’s department of commerce. While the department of commerce recommends anti-dumping duty, provisional or final, it is the department of revenue in the finance ministry that acts upon the recommendation within three months and imposes such duties.

Correct

Solution: A

World Bank

International Monetary Fund (IMF) releases World Economic Outlook.

Correct

Solution: B

What is a PMI?

PMI or a Purchasing Managers’ Index (PMI) is an indicator of business activity — both in the manufacturing and services sectors.

It is a survey-based measures that asks the respondents about changes in their perception of some key business variables from the month before. It is calculated separately for the manufacturing and services sectors and then a composite index is constructed.

Correct

Solution: B

Green Charcoal Hackathon:

• Launched by NVVN (NTPC Vidyut Vyapar Nigam), a wholly-owned subsidiary company of NTPC Ltd. Hence, statement 1 is incorrect.
• It is a technology challenge with an aim to fast-track technology developments conducted by NVVN in partnership with EESL (Energy Efficiency Services Ltd).

To fast-track the technology development, NVVN, in partnership with EESL organises technology challenge aptly named as Green Charcoal Hackathon. The purpose of the event is to leverage the innovative Indian mind to bridge the technology gap, with the prime objective to clean the air by eliminating farm fire, producing renewable energy out of the agro residue, to promote local entrepreneurship, and to increase the income of the farmers.

Correct

Solution: C

An increase in CAD as a ratio to GDP worsens the BoP by drawing down on forex reserves or building the potential to worsen it by increasing the external debt burden.

Correct

Solution: A

Trade Infrastructure for Export Scheme (TIES): The Government of India has launched a scheme namely, Trade Infrastructure for Export Scheme (TIES), from FY 2017-18 with the objective to assist Central and State Government Agencies for creation of appropriate infrastructure for growth of exports from the States. The Scheme provides financial assistance in the form of grant-in-aid to Central/State Government owned agencies for setting up or for up-gradation of export infrastructure as per the guidelines of the Scheme. Establishment of facility for the identification of origin and authenticity at Export Inspection Agency, Mumbai and Construction of office-cum-lab complex of EIA Chennai SO Visakhapatnam are two projects, approved under TIES.

 

The scheme can be availed by the States through their Implementing Agencies, for infrastructure projects with overwhelming export linkages like the Border Haats, Land customs stations, quality testing and certification labs, cold chains, trade promotion centres, dry ports, export warehousing and packaging, SEZs and ports/airports cargo terminuses.

Correct

Solution: D

About BTIA:

In June 2007, India and the EU began negotiations on a broad-based Bilateral Trade and Investment Agreement (BTIA) in Brussels, Belgium.

These negotiations are pursuant to the commitment made by political leaders at the 7th India-EU Summit held in Helsinki on 13th October 2006 to move towards negotiations for a broad-based trade and investment agreement on the basis of the report of India-EU High Level Technical Group.

 Significance:

India and the EU expect to promote bilateral trade by removing barriers to trade in goods and services and investment across all sectors of the economy.

Both parties believe that a comprehensive and ambitious agreement that is consistent with WTO rules and principles would open new markets and would expand opportunities for Indian and EU businesses.

 The negotiations cover:

Trade in Goods, Trade in Services, Investment, Sanitary and Phytosanitary Measures, Technical Barriers to Trade, Trade Remedies, Rules of Origin, Customs and Trade Facilitation, Competition, Trade Defence, Government Procurement, Dispute Settlement, Intellectual Property Rights & Geographical Indications, Sustainable Development.

Correct

Solution: A

Index of Industrial Production (IIP)

The IIP is a measure of industrial performance. It assigns a weight of 77.6 per cent to manufacturing followed by 14.4 per cent to mining and 8.0 per cent to electricity.

 

The Index of Industrial Production (IIP) is an index which shows the growth rates in different industry groups of the economy in a stipulated period of time. The IIP index is computed and published by the Central Statistical Organisation (CSO) on a monthly basis.

Correct

Solution: C

 

The Singapore Convention on Mediation came into force on Saturday and will provide a more effective way for enforcing mediated settlements of corporate disputes involving businesses in India and other countries that are signatories to the Convention.

Also known as the United Nations Convention on International Settlement Agreements Resulting from Mediation, this is also the first UN treaty to be named after Singapore.

Correct

Solution: D

New Industrial Policy, 1991

It was the industrial policies of past which had shaped the nature and structure of the Indian economy. The need of the hour was to change the nature and structure of the economy by early 1990s. The Government of India decided to change the very nature of the industrial policy which will automatically lead to change in the nature and scope of the economy. And here came the New Industrial Policy of 1991.

 

The major highlights of the policy are as follows:

 

1. De-reservation of the Industries

The industries which were reserved for the Central Government by the IPR, 1956, were cut down to only eight. In coming years many other industries were also opened for private sector investment.

 

At present there are only two industries which are fully or partially reserved for the Central Government:

(i) Atomic energy and nuclear research and other related activities

(ii) Railways

2. De-licencing of the Industries

The number of industries put under the compulsory provision of licencing (belonging to Schedules B and C as per the IPR, 1956) were cut down to only 18. Reforms regarding the area were further followed and presently there are only five industries.

 

3. Abolition of the MRTP Limit

The MRTP limit was Rs. 100 crore so that the mergers, acquisitions and takeovers of the industries could become possible. In 2002, a competition Act was passed which has replaced the MRTP Act. In place of the MRTP commission, the Competition Commission has started functioning (though there are still some hitches regarding the compositional form of the latter and its real functions and jurisdictions).

 

4. Promotion to Foreign Investment

Functioning as a typical closed economy, the Indian economy had never shown any good faith towards foreign capital. The new industrial policy was a pathbreaking step in this regard. Not only the draconian FERA was committed to be diluted, but the government went to encourage foreign investment (FI) in both its forms—direct and indirect.

 

6. Compulsion of Phased Production Abolished

With the compulsion of phased production abolished, now the private firms could go for producing as many goods and models simultaneously. Now the capacity and capital of industries could be utilised to their optimum level.

Correct

Solution: C

• Global Financial Development Report is released by World Bank
• Global Financial Stability Report is released by International Monetary Fund (IMF)
• Global Financial System Report is released by Bank for International Settlements (BIS).
• Global Information Technology Report is released by World Economic Forum (WEF)

Correct

Solution: D

India is the largest provider of generic drugs globally. Indian pharmaceutical sector supplies over 50% of global demand for various vaccines, 40% of generic demand in the US and 25% of all medicine in the UK.

India enjoys an important position in the global pharmaceuticals sector. The country also has a large pool of scientists and engineers with a potential to steer the industry ahead to greater heights. Presently, over 80% of the antiretroviral drugs used globally to combat AIDS (Acquired Immune Deficiency Syndrome) are supplied by Indian pharmaceutical firms.

Correct

Solution: D

Capital Account Convertibility

Definition:

The RBI appointed in 1997 the Committee on Capital Account Convertibility with Mr. S. S. Tarapore as its Chairperson. The Tarapore Committee defined CAC as “the freedom to convert local financial assets into foreign financial assets and vice versa at market-determined rates of exchange.” CAC would permit anyone to move freely from local currency into foreign cur­rency and back.

The potential benefits from the scheme are:

1. Availability of large funds to supplement domestic resources and thereby promote faster economic growth.
2. Improved access to international financial markets and reduction of the cost of capital.
3. Incentive for Indians to acquire and hold international securities and assets.
4. Improvement (strengthening) of the financial system in the context of global competition.

Correct

Solution: D

Hot currency

Hot currency is a term of the forex market and is a temporary name for any hard currency. Due to certain reasons, if a hard currency is exiting an economy at a fast pace for the time, the hard currency is known to be hot. As in the case of the SE Asian crisis, the US dollar had become hot.

 

Heated currency

A term used in the forex market to denote the domestic currency which is under enough pressure (heat) of depreciation due to a hard currency’s high tendency of exiting the economy (since it has become hot). It is also known as currency under heat or under hammering.

 

Cheap currency

A term first used by the economist J. M. Keynes (1930s). If a government starts re-purchasing its bonds before their maturities (at full-maturity prices) the money which flows into the economy is known as the cheap currency, also called cheap money.

 

In the banking industry, it means a period of comparatively lower/softer interest rates regime.

 

Dear currency

This term was popularized by economists in early 1930s to show the opposite of the cheap currency. when a government issues bonds, the money which flows from the public to the government or the money in the economy in general is called dear currency, also called as dear money. In the banking industry, it means a period of comparatively higher/costlier interest rates regime.

Correct

Solution: A

Solution:

• The Indian Navy participated in the U.S. Navy-led Southeast Asia Cooperation and Training (SEACAT) military exercise in Singapore, to demonstrate its maritime manoeuvres. The main objective of SEACAT 2021 was to enhance the interoperability and shared maritime security concerns and preserve rules-based international order. The exercise comprised approximately 400 personnel and 10 ships.

 

• The 20th edition of the exercise was organised by the U.S. Navy, in Hybrid format, and included 20 other partner nations from the Indo-Pacific region, including India.

 

• SEACAT was held for the first time in 2002. The exercise aims to foster enhanced cooperation between Southeast Asian countries by incorporating standardized training, tactics and procedures when faced with crises, contingencies or illegal activities in the maritime domain.

Correct

Solution: D

Solution:

Union Minister of Women & Child Development, Smt. Smriti Irani addressed the First ever G20 Ministerial Conference on Women’s Empowerment which was held at Santa Margherita Ligure, Italy in a hybrid format yesterday. The Union Minister reaffirmed India’s commitment towards addressing gender and women centric issues through mutual cooperation.

Correct

Solution: B

Solution:

• Recently, Forum for Decarbonizing Transport was jointly launched by NITI Aayog and World Resources Institute (WRI), India.

 

• Nationally Determined Contributions (NDC)-Transport Initiative for Asia (NDC-TIA) project, which focuses on developing a coherent strategy of effective policies and the formation of a multi-stakeholder platform for decarbonising transport in the region. NDC-TIA is a joint programme of seven organisations that will engage China, India, and Vietnam in promoting a comprehensive approach to decarbonising transport in their respective countries. The project is part of the International Climate Initiative (IKI).

 

• To Bring down the peak level of GreenHouse Gas emissions (transport sector) in Asia (in line with a well below 2-degree pathway), resulting in problems like congestion and air pollution.

Correct

Solution: A

Solution:

• US-based renewable energy company Ohmium International, through its Indian subsidiary, started India’s first green hydrogen electrolyser manufacturing unit at Bengaluru, Karnataka.

Correct

Solution: C

Solution:

• Union Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman today unveiled the fourth edition of the Public Sector Bank (PSB) Reforms Agenda ‘EASE 4.0’ for 2021-22 – tech-enabled, simplified, and collaborative banking. She unveiled the annual report for the PSB Reforms Agenda EASE 3.0 for 2020-21 and participated in the awards ceremony to felicitate best performing banks on EASE 3.0 Banking Reforms Index.

Correct

Solution : A

Solution :The first reports of cyberattacks in Ukraine appeared on 14 January and this took the form of website defacements of government agencies and the destruction of data using wiper software Called WhisperGate by Microsoft researchers.

Correct

Solution : B

Solution : India–US Logistics Exchange Memorandum of Agreement (LEMOA)

India–Japan Acquisition and Cross-Servicing Agreement (ACSA) 

India–Australia Mutual Logistics Support Agreement (MLSA)

Correct

Solution : B

 

Solution: WEF with  Rocky Mountain Institute and the Energy Transitions Commission has launched an Initiative called The Clean Skies for Tomorrow.  

The Clean Skies for Tomorrow initiative provides a crucial global mechanism for top executives and public leaders to align on a transition to sustainable aviation fuels as part of a meaningful and proactive pathway for the industry to achieve carbon-neutral flying. 

Correct

Solution : B

Solution: It has been proposed by The International Monetary Fund (IMF) for establishment of an international carbon price floor (ICPF). 

It is a minimum price paid on CO2  and other GHG emissions 

“Big six” emitters – China, United States, India, the EU, Canada, and the UK – 

Correct

Solution : C

Solution : The Green Economy Coalition is a global, multi stakeholder alliance on a mission to accelerate the transition to green and fair economies.  

Building Back Greener report has been commissioned by the United Nations Environment Programme (UNEP). 

Green recovery means measures that combat the social, economic and environmental impacts of the coronavirus crisis.

Correct

Answer  : B

 

Explanation:

Type – Simple Arrangement (Swap Coding) Positions of T and E and L and N are swapped. Also, positions of second E and P and H and A are swapped.

Therefore, for CROCODILE the code after swapping in the same pattern is ELOCIDRC.

Correct

Ans : C

 

Explanation:

2 Women can occupy 2 chairs out of the first four chairs in 4P2 ways. 3 men can be arranged in the remaining 6 chairs in 6P3 ways. Hence, total no. of ways = 4P2 × 6P3 = 1440

 

Correct

Answer : C

Answer Justification :

Part filled by pipe A in 1 min = 1/10 Part empty by pipe B in 1 min = 1/15 Total tank filled in minutes =

1/10 – 1/15 = 1/30

Hence, the tank will be filled in 30 min.

Correct

Answer: A

Explanation:

Let number of girls = x

The number of boys = y

45 games in which both the players were girls xC2 = 45

x! / 2!(x-2)! = x(x-1) = 90

Therefore, x = 10.

190 games, where both the players were boys.

yC2 = 190 = y(y – 1) = 380

y = 20

Total Marks : 200 Mark Scored : 0

Hence the total number of games in which one player was a boy and the other was a girl = 10 × 20 = 200

Correct

Answer  : A

Assumption is an argument or imaginary claim that can be surely based on the claims given in the passage. The passage informs us various positive consequences of having minimum wages i.e. wages that are fair and adequate,

1. It will increase income of workers—so low wages means welfare of workers is hit
2. High wage means high consumption and so high demand—so low wage affects demand

Statement 1 is therefore correct

There is no mentioning of link between high wages and unemployment. While it is a normal perception, it is not given in the passage, hence it cannot be assumed. 2 is wrong.

This is not a premise based on the passage. Hence, 1 only or A is the answer.