TN Board 12th Economics Important Questions Chapter 8 International Economic Organisations

Students get through the TN Board 12th Economics Important Questions Chapter 8 International Economic Organisations which is useful for their exam preparation.

TN State Board 12th Economics Important Questions Chapter 8 International Economic Organisations

Very short answer questions

Question 1.
Write a note in TRIMs.
Answer:
Trade-related investment measures are related to conditions or restrictions in respect of Foreign investment in the country. It introduces equal treatment for Foreign companies on par with National Companies.

Question 2.
What is MFA?
Answer:
The Multi Fibre Agreement Governed by the World Trade in textile and garments since 1974.

Question 3.
Why was the SDR created?
Answer:

1. To be the World Reserve Currency.
2. To create Global liquidity.

Question 4.
How is SDR Valued?
Answer:
The value of SDR was initially defined as equivalent to 0.888671 grams of fine gold – which at the time was also equivalent to one US Dollar.

Question 5.
What is World Bank’s lending procedure?
Answer:
The bank advances loans to members in three ways.

1. Loans out of its own fund
2. Loans out of borrowed capital and
3. Loans through Bank’s guarantee

Question 6.
What are the development activities of the World Bank in rural areas?
Answer:

1. Spread of education among rural people.
2. Development of roads in rural areas.
3. Electrification of the villages.

Question 7.
Write a note on WTC. (WORLD TRADE CENTRE).
Answer:
WTC Headquarters located in New York, USA. Landmark is Twin Towers. It brings together businesses involved in International Trade from around the Globe.

Question 8.
Write a note on TRIPs – Trade-Related Intellectual Property Rights.
Answer:
TRIPs was established in 1995. It changes the face of International Intellectual property (IP) Law and Policymaking. The TRIPs agreement helps ease trade tensions about IP issues.

Question 9.
Write a note on (CRA).
Answer:
Contingent Reserve Arrangement has further defended and consolidated the partnership of its members in the Economic – Financial area.

Question 10.
Write a short note on BRICS.
Answer:
BRICS is the acronym for an association of five major emerging National Economics. Like Brazil, Russia, India, China, and South Africa. It was coined in 2001. BRICS members are known for their significant influence on Regional Affairs.

Short answer questions

Question 1.
How are the IMF functions grouped?
Answer:

1. Financial: Assistance to correct the short and medium-term deficit in BOP
2. Regulatory: Code of conduct
3. Consultative: Counseling and technical consultancy.

Question 2.
What are the objectives of the world bank?
Answer:

1. Reconstruction and Development
2. Encouragement to Capital Investment
3. Encouragement to International Trade
4. Establishment of Peace – Time Economy
5. Environmental Protection.

Question 3.
What are the major functions of WTO?
Answer:

1. Administering WTO Trade Agreements.
2. Forum for Trade Negotiations.
3. Handling trade disputes.
4. Monitoring National Trade Policies.
5. Technical Assistance and Training for Developing Countries.
6. Co-operation with other International Organizations.

Question 4.
What are the facts about BRICS?
Answer:
BRICS countries make up 21% of Global GDP. They have increased the share of global GDP threefold in the past 15 years. BRICS are home to 43% of the World’s population. The countries have combined foreign reserves of an estimated $4.4 trillion.

Question 5.
How did India benefit from WTO?
Answer:
By reducing tariff rates on raw materials components and capital goods it was able to import more for meeting her developmental requirements. It also gets market access in several countries without any bilateral agreement.

Long answer questions

Question 1.
Explain the achievements of the IMF.
Answer:

1. Establishment of monetary reserve fund: It achieved sizeable stock of National Currencies of different countries. To meet the foreign exchange requirements of the member nations. IMF uses its stock to help the member nations to meet foreign exchange requirements.
2. Monetary discipline and co-operation: The IMF has shown keen interest in maintaining monetary discipline and cooperation among the member countries. To achieve this objective, it has provided assistance only to those countries which make sincere efforts to solve their problems.
3. Special interest in the problems of UDCs: The notable success is the maintenance of special interest in the acute problems of developing countries. The fund has provided Financial Assistance to solve the Balance of Payment problem of UDCs and the developed countries have achieved Substantial Growth.

Question 2.
Explain the achievements of the World Bank.
Answer:
It has achieved the primary objectives of reconstructions and the development of war-ravaged nations.

1. IBRD has 189 member countries now.
2. World Bank grants medium and long-term loans for re-construction and development purposes for its member countries.
3. Now World Bank loans mainly directed towards poor masses of the developing countries.
4. The World Bank grants loans to member countries only for productive purposes, particularly for agriculture, irrigation, power, and transport.
5. The International Development Association IDA – Provides loans to UDCs at a very low rate of interest.

Question 3.
Explain India and World Bank.
Answer:
The IBRD was first suggested by India to the drafting committee. From that time they have developed a close relationship with each other framing policies of economic development in India. The World Bank has given large financial assistance to India for Economic Development. Especially for the development of infrastructure like Electric power, Transport, etc.
The World Bank has assisted a number of projects in India. The IFC has identified five priority areas namely capital market development, direct Foreign investments in new and expanding companies, and infrastructure. The World Bank has also assisted India in poverty alleviation programs and Economic development.

Activity

Question 1.
The students are asked to go through the World map thoroughly to understand the location of Countries and their Capital.
Answer:
Practice and identification of map and location of places in the World Map.

1. Develops map marking skills of the student.
2. Helps to know the location of different countries of the world.
3. Helps to develop tourism among students.
4. Helps to create knowledge globally.
5. Helps to enhance their worldly knowledge.

Question 2.
The students may go to relevant websites to understand the international economic organizations and their events.
Answer:

1. Helps to have knowledge of computer applications.
2. Helps to know about world affairs.
3. Encourages to know the day-to-day happenings around the world.
4. Helps to understand clearly that economics is much a part of human life.

Multiple choice questions

1. The GATT was transformed into WTO on:
(a) 1995
(b) 1996
(c) 1997
(d) 1998
Answer:
(a) 1995

2. The IMF headquarters are in:
(a) Geneva
(b) Hong kong
(c) the USA
(d) Washington DC
Answer:
(d) Washington DC

3. The Bretton wood conference proposed, IMP World Bank and ITO in:
(a) 1934
(b) 1944
(c) 1954
(d) 1964
Answer:
(b) 1944

4. At present the IMF have ………… members.
(a) 189
(b) 179
(c) 159
(d) 149
Answer:
(a) 189

5. A member can borrow from IMF fund in a year equal to ………… % of its quota.
(a) 50
(b) 75
(c) 100
(d) 25
Answer:
(d) 25

6. The buffer stock financing facility was started in:
(a) 1949
(b) 1959
(c) 1969
(d) 1979
Answer:
(c) 1969

7. The IMF established SAF to provide:
(a) Loans
(b) Cheques in total
(c) Additional BOT
(d) Additional BOP
Answer:
(d) Additional BOP

8. IBRD is otherwise called as:
(a) IMF
(b) RBI
(c) World bank
(d) Central bank
Answer:
(c) World bank

9. The WTO was established in:
(a) 1995
(b) 1935
(c) 1925
(d) 1965
Answer:
(a) 1995

10. The first SAARC summit was held at:
(a) China
(b) Nepal
(c) Pakistan
(d) Dhaka
Answer:
(d) Dhaka

11. SAARC meets once in ……… years.
(a) 4
(b) 3
(c) 2
(d) 1
Answer:
(c) 2

12. In 2018 ………… SAARC summit was hosted.
(a) 5
(b) 20
(c) 15
(d) 10
Answer:
(b) 20

Pick the odd one out.

1. The Nation of BRICS is:
(a) Brazil
(b) Russia
(c) Israel
(d) China
Answer:
(c) Israel

2. World Bank group:
(a) IBRD
(b) IFC
(c) RBI
(d) IDA
Answer:
(c) RBI

3. WTO conference held in:
(a) Geneva
(b) Hong kong
(c) Doha
(d) Arabia
Answer:
(d) Arabia

4 are the member countries of ASEAN.
(a) Indonesia
(b) Singapore
(c) the Philippines
(d) Bangkok
Answer:
(d) Bangkok

5. The Financial Institutions are:
(a) IMF
(b) IBRD
(c) BOP
(d) IFC
Answer:
(c) BOP

6. The IFC has identified priority areas as:
(a) Capital market
(b) FDI
(c) Access to foreign market
(d) Profit and loss account
Answer:
(d) Profit and loss account

7. Intellectual property rights include:
(a) Copyright
(b) Trademarks
(c) Patents
(d) Advertisements
Answer:
(d) Advertisements

8. BENELVX is:
(a) Belgium
(b) Netherland
(c) Libia
(d) Luxembourg
Answer:
(c) Libia

9. SAARC was established in 1985 for:
(a) Social Development
(b) Economic Development
(c) Cultural Development
(d) Production Development
Answer:
(d) Production Development

10. ASEAN dialogue partners are:
(a) China
(b) Tamil Nadu
(c) Japan
(d) Australia
Answer:
(b) Tamil Nadu