UNIT - II INTERNATIONAL TRADE AND INVESTMENT

Promotion of global business – the role of GATT/WTO – multilateral trade negotiation

and agreements – VIII & IX, round discussions and agreements –Challenges for global
business – global trade and investment – theories of international trade and theories of
international investment – Need for global competitiveness – Regional trade block –
Types – Advantages and disadvantages – RTBs across the globe – brief history.
PART - A
Q.No Questions BT Level Competence

1 Define the term International trade Level 1 Remem bering

2 What is meant by international investment? Level 2 Understanding
3 Outline the need for international trade and Level 3 Applying
Investment
Can you list out the factors affecting
4 Level 4 Analysing
international trade and Investment
5 State the theories of international trade & Level 5 Evaluating
investment?
What are the features of “Free Trade
6 Area(Regime)”? Level 6 Creating
7 What is meant by Competitive Advantage? Level 1 Remem bering
8 What can you say about Internationalization? Level 2 Understanding
How new trade theory is different from product
9 Level 3 Applying
life cycle Theory?
10 Why do you think FDI International Level 4 Analysing
Entrepreneurship is essential?
Write any three articles important articles of
11 GATT. Level 5 Evaluating
12 Write short note on promotional strategies? Level 6 Creating
13 Define Regional Trade Block. Level 1 Remem bering

4
 14 What is meant by GATT? Level 2 Understanding
15 How would your understanding of multilateral Level 3 Applying
Settlements?
Can you list out the purpose of multilateral
16 Level 4 Analysing
agreements?
17 Define WTO. Level 1 Remem bering
18 Can you explain any two principles of WTO? Level 2 Understanding
19 Define global competitiveness. Level 1 Remem bering
20 Define NAFTA Level 1 Remem bering

Q.No Questions BT Level Competence

How would you describe the global promotional

1 strategies along with the challenged faced during Level 1 Remem bering
promotion of global business?
Explain the role of WTO in multinational trade
2 Level 2 Understanding
negotiations?
Give an account on the round discussions of GATT
3 Level 3 Applying
trade negotiations
4 State the difference between GATT & WTO? Level 4 Analysing
5 Discuss the WTO agreements in context to trade Level 5 Evaluating
without discrimination
What would result if a company enters into
6 international level in the present global business Level 6 Creating
challenges?
Explain the Objectives and Functions of World Trade
7 Organization. Level 1 Remem bering
a) Can you recall the different theories of
International Trade?
b) Write in details the purchasing power parity
8 theory. Level 2 Understanding
Will you state the theories of international
9 Level 3 Applying
Investment?
A). What is the need for global competitiveness in
International business?
10 Level 4 Analysing
B). How is the competitive advantage related to
Countries development?
11 Level 1 Remem bering
a) What are the different types of RTB’s?
b) What are their merits and demerits?
a) Explain the bases of International PLC
b) Explain the Porter’s Competitive Advantage
12 theories of International Trade. Level 2 Understanding
Elaborate the various levels of Regional Trade
13 Agreements with Examples. Level 4 Analysing
Briefly discuss the various Trade Barriers and Non-
14 Trade Barriers. Level 1 Remembering
S.NO QUESTIONS
Explain the different forms of protection and its impact on welfare and how far the WTO
1 play key role in protecting the free trade.
“Global trade is more difficult and risky, however, than domestic trade because of
2 financing”. Discuss with share of India in global trade.

“Competitive is defined as the ability of a national economy to achieve sustained high

3 rates of economic growth on the basis of suitable policies institutions and other economic
characteristics’. Elaborate this statement

“Despite the realization of NAFTA, the share of intra-regional trade has not increased
4 significantly”. State the reasons behind it.