INDIAN INSTITUTE OF MATERIALS MANAGEMENT
INDIAN INSTITUTE OF MATERIALS MANAGEMENT
Post Graduate Diploma in Materials Management
Graduate Diploma in Materials Management
PAPER No. 7
International Trade
Date: 13.06.2016 Max. Marks: 100
Time: 10.00 a.m. to 1.00 p.m. Duration: 3 Hrs.
Instructions:
1. From Part A answer all questions (compulsory). Each sub questions carries 1 mark. Total: 32 Marks
2. From Part B Answer any 3 questions out of 5 questions. Each sub-question carries 16 marks. Total 48 Marks
3. Part C is a case study (compulsory) with questions. Read the case study carefully and answer the questions. Total: 20 Marks
4. Please read the instructions given in the answer sheet.
Part A 32 Marks
(Attempt all questions Each sub questions carries 1 mark.)
Q1. Select the correct option: 8 marks
a.. Which of the following is not a type of quota?
i. Tarif quota
ii. Unilatéral quota
iii. Ad Valorem quota
iv. Reservation quota
.
b. Which of the following is NOT a reason why nations export?
i. Some nations produce more goods or services than can be consumed at home.
ii. Some nations are able to sell goods or services to other nations at higher prices than they
can obtain domestically.
iii. For some nations, especially developing countries, export can serve the purpose of earning
foreign currency with which they can buy essential imports.
iv. For some nations, export can halt the fluctuation of the national currency.
c. Which of the following document is not attached with
i. Invoice
ii. B/L
iii. Insurance
iv. Tender Enquiry
June 2016
d. Customs Clearance Act was introduced in the year
i. 1947
ii. 1962
iii. 1988
iv. 1991
State True or False:
e. BoT is the difference between the monetary values of exports and imports in an economy over a
certain period of time
f. Port formalities are not part of customs clearance procedure.
g. When the exchange rate is taken into consideration, prices do not vary among countries.
h. Governments have traditionally tried to manage trade flows by encouraging exports and
restricting imports.
Q2. Match the following: 8 marks
Column "A" Column "B"
a. Balance of trade i. Mandatory code for import export
b. Capital Goods ii. Insurance credit
c. IEC iii. Trade Block
d. ECGC iv. Type of custom duty
e. G 7 v. Plants and heavy equipment
f. BCD vi. difference between a country's total imports and exports
g. Intellectual property vii. Special right on the goods produced
h. GBP viii. Currency
Q3. Fill in the blanks: 8 marks
a. Countries or services if essential goods or services are not naturally available or
cannot be produced at home.
b. is necessary for the custom clearance of imported goods.
c. New Incoterms have been introduced by ICC in the
d. General Agreement on Trade and Tariff was signed in the
e. is an Export Promotion Scheme..
f. IEC is issued by
g. When a country's total annual imports total annual exports, it is said to have trade
deficit.
h. . required to be paid to Airport Authorities, when custom clearance of imported air
consignments is delayed.
Q4. Give the full forms: 8 marks
1. BTN
2. TRIPS
3. CCP
4. LERMS
5. ICD
6. DDU
7. SAARC
8 ICC
PART-B
Write any three of the following questions 16 marks each (48 Marks)
Q5.What are incoterms? What is the usefulness of each term?
Q6. What are the general procedures for import and export of goods? Explain.
Q7. Define the term International Trade. What are economic benefits of
International Trade?
Q8. a. Why are trade deficits and foreign investments politically sensitive issues and perceived to be by some
individuals an economic problem?
b. Summarize and critically analyze the pros and cons of free trade.
Q9.Write short notes on ANY TWO of the following:
a. FERA and FEMA
b. Foreign Direct Investment
c. Balance of Payment
d. Global Marketing Domestic Marketing
PART- C 20 marks
(Compulsory)
Q 10The Project Cell of Suzlon Limited, Waghodia has received an offer for import of Turbine Shaft for a
steam turbine of power plant and now the import manager has to work out following values
CIF Price in INR
Basic Customs Duty in INR
CVD in INR
SAD in INR
Landed Cost in INR
Use following data for calculation purpose:
Price of M/s Linde AG, Germany Euro 395 FOB
Landing Charges of CIF Value
Assessable Value CIF price landing charges
ii) Exch Rate: 1 Euro Rs 62.41
iii) BCD 7.5% on Assessable Value, CVD 8.24% on Assessable Value BCD,SAD on
Assessable Value BCD CVD
iv) Marine Insurance of C&F
Ocean Freight of FOB
You may assume any data, if required.