In 1998, China’s share in World trade, compared to that of India, was higher by approx

Directions: Read the following passage carefully to answer the given question. 

In 1971, China contributed US $ 2.78 billion to world trade (exports), which was 0.82 percent of world trade. Since then, its contribution to world trade consistently increased: US $ 183.59 billion (3.37 percent) in 1998; and US $ 250 billion (over 4 percent) in 2001. India's contribution in 1971 was US $ 2.04 billion (0.60 percent of world trade) and US $ 33.44 billion in 1998. In 2001, we achieved exports of US $ 44.5 billion (0.70 percent of world trade). The export figures between India and China showed a big difference in 2001 though it was marginal in 1971.

The key factors influencing world trade are: External trade and foreign investment; relocation of global manufacturing basis; and rapid technological developments. External trade & foreign investment: Capital flows in the form of foreign direct investment (FDI's) and foreign invested enterprises (FIE's). Cross border acquisitions and mergers constituted a major percentage of FDI flows. FDI flow to developing countries increased by six fold from 1990 to 1998. During 1995-98, FDI flow increased to US $ 1886 billion. Of this, China alone attracted US $ 164 billion while India's share was only US $ 11 billion. The impact of FDI to a host country's economy is widely recognised. The foreign-funded firms contributed to nearly 45 per cent of China's export during 1999.

Relocation of global manufacturing basis: Large-scale shift in global manufacturing basis to Asian countries has occurred through the 1990's, with factor costs, especially wages increased in developed countries. The other factor which determined the choice of shifting was the labour laws and work related rules and regulations. China which was associated with rigid labour laws and other economy related rules and regulations came out with a concept of special export zones which are a foreign enclave in the country where no labour laws and other economy related rules are made applicable. In fact, China soon realised that it may not be possible to change labour laws and other economy related rules in the country so soon. However, having realised their importance for attracting FDI and to the growth of their economy, it accepted the idea of creating these foreign enclaves such as Shenzen and attracted foreign capital and technology. That is the reason why approximately 45 per cent of China's exports come from such zones.

Rapid technological developments: Rapid technological developments have led to a steep decline in transportation and telecommunication costs. These in turn have vastly reduced the impact of physical distance for global commerce. Though China had a distinct disadvantage of the lack of knowledge of English, it has come out with Chinese as computer compatible language. It has declared that Chinese will be the world's no.1 computer language soon. The flow of FDI capital has also brought with it the technology from the West including the USA. The cultural ties with Taiwan have helped China to a great extent in achieving access to technology and export.

China has achieved the number one position in world trade in regard to toys and stuffed toys. China captured, in 1999, business to the tune of US $ 52 billion out of global US $ 300 billion in textile and clothing. China achieved more than US $ 20 billion in world trade of US $ 850 billion in electronics and computers in 1999-2000. China's next target is gem and jewellery which is low cost capital but highly labour oriented industry of approximately US $ 40 billion. China is equally exploring organic and inorganic chemicals which had a world trade of US $ 574 billion last year.

Destination wise analysis will show that in the USA's import of top 100 items, China figures among top exporters in respect of 61 items while India appears in only 15 items. Similar is the position in regard to the European Union. In the top 100 items of import by Japan, China appears at 76 items. China has foreign reserves of more than US $ 250 billion but the share of FDI's in it is a question mark.

Should India be afraid of China or should prepare for competing with China in international trade. This writer is of the opinion that where we cannot compete we should co-operate with China and bring some success to our industry by importing semi finished products both for domestic and international trade. India should learn lesson from the next door neighbour and modify its economic policies, including the Exim policy with the sole motive of converting human factor from liability to an asset.

We can conclude from the passage that

Directions: Read the following passage carefully to answer the given question. 

In 1971, China contributed US $ 2.78 billion to world trade (exports), which was 0.82 percent of world trade. Since then, its contribution to world trade consistently increased: US $ 183.59 billion (3.37 percent) in 1998; and US $ 250 billion (over 4 percent) in 2001. India's contribution in 1971 was US $ 2.04 billion (0.60 percent of world trade) and US $ 33.44 billion in 1998. In 2001, we achieved exports of US $ 44.5 billion (0.70 percent of world trade). The export figures between India and China showed a big difference in 2001 though it was marginal in 1971.

The key factors influencing world trade are: External trade and foreign investment; relocation of global manufacturing basis; and rapid technological developments. External trade & foreign investment: Capital flows in the form of foreign direct investment (FDI's) and foreign invested enterprises (FIE's). Cross border acquisitions and mergers constituted a major percentage of FDI flows. FDI flow to developing countries increased by six fold from 1990 to 1998. During 1995-98, FDI flow increased to US $ 1886 billion. Of this, China alone attracted US $ 164 billion while India's share was only US $ 11 billion. The impact of FDI to a host country's economy is widely recognised. The foreign-funded firms contributed to nearly 45 per cent of China's export during 1999.

Relocation of global manufacturing basis: Large-scale shift in global manufacturing basis to Asian countries has occurred through the 1990's, with factor costs, especially wages increased in developed countries. The other factor which determined the choice of shifting was the labour laws and work related rules and regulations. China which was associated with rigid labour laws and other economy related rules and regulations came out with a concept of special export zones which are a foreign enclave in the country where no labour laws and other economy related rules are made applicable. In fact, China soon realised that it may not be possible to change labour laws and other economy related rules in the country so soon. However, having realised their importance for attracting FDI and to the growth of their economy, it accepted the idea of creating these foreign enclaves such as Shenzen and attracted foreign capital and technology. That is the reason why approximately 45 per cent of China's exports come from such zones.

Rapid technological developments: Rapid technological developments have led to a steep decline in transportation and telecommunication costs. These in turn have vastly reduced the impact of physical distance for global commerce. Though China had a distinct disadvantage of the lack of knowledge of English, it has come out with Chinese as computer compatible language. It has declared that Chinese will be the world's no.1 computer language soon. The flow of FDI capital has also brought with it the technology from the West including the USA. The cultural ties with Taiwan have helped China to a great extent in achieving access to technology and export.

China has achieved the number one position in world trade in regard to toys and stuffed toys. China captured, in 1999, business to the tune of US $ 52 billion out of global US $ 300 billion in textile and clothing. China achieved more than US $ 20 billion in world trade of US $ 850 billion in electronics and computers in 1999-2000. China's next target is gem and jewellery which is low cost capital but highly labour oriented industry of approximately US $ 40 billion. China is equally exploring organic and inorganic chemicals which had a world trade of US $ 574 billion last year.

Destination wise analysis will show that in the USA's import of top 100 items, China figures among top exporters in respect of 61 items while India appears in only 15 items. Similar is the position in regard to the European Union. In the top 100 items of import by Japan, China appears at 76 items. China has foreign reserves of more than US $ 250 billion but the share of FDI's in it is a question mark.

Should India be afraid of China or should prepare for competing with China in international trade. This writer is of the opinion that where we cannot compete we should co-operate with China and bring some success to our industry by importing semi finished products both for domestic and international trade. India should learn lesson from the next door neighbour and modify its economic policies, including the Exim policy with the sole motive of converting human factor from liability to an asset.

What does the author feel about the fact that some NGOs are crooks?

Directions: Read the following passage carefully to answer the given question. Some words/phrases are printed in bold to help you locate them while answer the question.

Bangladesh, a country numbering almost 140 million, whose population is 90 percent Muslim, is a prime example of a nation under siege from a deluge of NGOs. Since 1981, foreign NGOs have created an indigenous mercenary army and set up a parallel government of their own in the country. Given handsome salaries, bribes, awards, vehicles, machinery and huge funds, the nouveau riche mercenaries pretending to be writers, lawyers, teachers, artists and human–right activists, among others, have set up factories, printing presses, and publishing houses.

Bangladesh is probably the world leader in non–governmental organizations, NGOs, perhaps because economically it is near the bottom of the heap. The 20,000 or so NGOs there operate mainly in the country's 86,000 villages, providing education, health, small loans and agricultural development far more efficiently than the corrupt and inefficient government. Yet, while outsiders have lavished praise on the NGOs, Bangladeshis themselves are ambivalent. Some fear the organizations are becoming a parallel State, financed by foreigners and accountable to nobody.

Most of the foreign money (around $ 250m a year) goes to a handful of famous NGOs such as the Grameen Bank, the Bangladesh Rural Advancement Committee (BRAC), Proshika and the Association for Social Advancement. These are among the biggest rural–development organizations in the world, and they have an awesome reach.

BRAC alone has 1900 full–time employees, 34,000 part–time teachers, and 2.3m members (96% female) in 66,000 villages. Its schools admit only those who do not attend or have dropped out of government schools, and at least 70% of these must be girls. It hires teachers from each village, of whom 96% are women without teaching qualifications. They run schools in rented thatched huts, set neither exams nor homework, and have flexible school hours that enable children to work in the fields with their parents, reducing the incentive to drop out. Teachers are paid 600 taka ($ 12) a month and reach children that government teachers (paid six times as much) cannot.

The Grameen Bank has pioneered small loans to the poor. Commercial banks say it is too risky to make loans of around $100 to people without assets. But Grameen organizes borrowers into groups which guarantee a loan to any member (exerting peer pressure for repayment). Its repayment rate is over 95%. Other NGOs have followed this route, and now more than poor people (almost all women) have obtained small loans for shops, sewing machines, chicken farming and the like.

Micro–credit is one reason for the fall in poverty in Bangladesh, from 59% of the population in 1991–92 to 53% in 1995–96. A more important reason is the attention to women that NGOs have given. By directing education, jobs and credit at women, the NGOs have created a social revolution in a conservative Muslim society. This is mainly why the fertility rate in Bangladesh has crashed from 6.1 births per woman in 1960 to 3.4 births today. It is expected to decline to 2.5 births by 2010. The mullahs hate NGOs for eroding the traditional male–dominated structure, and occasionally attack their offices.

Resentment also comes from politicians, bureaucrats and leftists, all of whose shortcomings have been exposed by the success of NGOs. Leftwing critics accuse NGOs of exploitative rates of interest: BRAC charges 15%, Grameen up to 22%. Yet the high rate of repayment is the best evidence of affordability. In fact, in labour–intensive work, interest charges are a small proportion of total costs.

Grameen Bank has a policy of only giving its loans to women. This has led to calls that its effects are weakening the institution of the family. It is interested in pursuing a policy that will lead Bangladesh to a situation to that we see in the West where the institution of marriage is on the retreat (marriage break down is at an all time high). When one examines who the patrons of the Grameen Bank are things become much clearer. The World Bank, ADB together with the UN, sets the whole agenda of the Grameen Bank. The World Bank is of course the best example of an NGO, whose abject failures at alleviating poverty are all too well documented.

Politicians complain that NGOs have money and power without accountability, embezzle foreign funds and cook their books. The NGOs reply that their accounts are audited, and sometimes not just in Bangladesh but also, to satisfy donors, by auditors abroad. They say they are accountable both to donors and the villagers they serve. The easy availability of donor funds has encouraged some crooks to set themselves up as NGOs. But corruption among NGOs is a trickle compared to the rivers in government.

“Exim” policy most likely refers to

Directions: Read the following passage carefully to answer the given question. 

In 1971, China contributed US $ 2.78 billion to world trade (exports), which was 0.82 percent of world trade. Since then, its contribution to world trade consistently increased: US $ 183.59 billion (3.37 percent) in 1998; and US $ 250 billion (over 4 percent) in 2001. India's contribution in 1971 was US $ 2.04 billion (0.60 percent of world trade) and US $ 33.44 billion in 1998. In 2001, we achieved exports of US $ 44.5 billion (0.70 percent of world trade). The export figures between India and China showed a big difference in 2001 though it was marginal in 1971.

The key factors influencing world trade are: External trade and foreign investment; relocation of global manufacturing basis; and rapid technological developments. External trade & foreign investment: Capital flows in the form of foreign direct investment (FDI's) and foreign invested enterprises (FIE's). Cross border acquisitions and mergers constituted a major percentage of FDI flows. FDI flow to developing countries increased by six fold from 1990 to 1998. During 1995-98, FDI flow increased to US $ 1886 billion. Of this, China alone attracted US $ 164 billion while India's share was only US $ 11 billion. The impact of FDI to a host country's economy is widely recognised. The foreign-funded firms contributed to nearly 45 per cent of China's export during 1999.

Relocation of global manufacturing basis: Large-scale shift in global manufacturing basis to Asian countries has occurred through the 1990's, with factor costs, especially wages increased in developed countries. The other factor which determined the choice of shifting was the labour laws and work related rules and regulations. China which was associated with rigid labour laws and other economy related rules and regulations came out with a concept of special export zones which are a foreign enclave in the country where no labour laws and other economy related rules are made applicable. In fact, China soon realised that it may not be possible to change labour laws and other economy related rules in the country so soon. However, having realised their importance for attracting FDI and to the growth of their economy, it accepted the idea of creating these foreign enclaves such as Shenzen and attracted foreign capital and technology. That is the reason why approximately 45 per cent of China's exports come from such zones.

Rapid technological developments: Rapid technological developments have led to a steep decline in transportation and telecommunication costs. These in turn have vastly reduced the impact of physical distance for global commerce. Though China had a distinct disadvantage of the lack of knowledge of English, it has come out with Chinese as computer compatible language. It has declared that Chinese will be the world's no.1 computer language soon. The flow of FDI capital has also brought with it the technology from the West including the USA. The cultural ties with Taiwan have helped China to a great extent in achieving access to technology and export.

China has achieved the number one position in world trade in regard to toys and stuffed toys. China captured, in 1999, business to the tune of US $ 52 billion out of global US $ 300 billion in textile and clothing. China achieved more than US $ 20 billion in world trade of US $ 850 billion in electronics and computers in 1999-2000. China's next target is gem and jewellery which is low cost capital but highly labour oriented industry of approximately US $ 40 billion. China is equally exploring organic and inorganic chemicals which had a world trade of US $ 574 billion last year.

Destination wise analysis will show that in the USA's import of top 100 items, China figures among top exporters in respect of 61 items while India appears in only 15 items. Similar is the position in regard to the European Union. In the top 100 items of import by Japan, China appears at 76 items. China has foreign reserves of more than US $ 250 billion but the share of FDI's in it is a question mark.

Should India be afraid of China or should prepare for competing with China in international trade. This writer is of the opinion that where we cannot compete we should co-operate with China and bring some success to our industry by importing semi finished products both for domestic and international trade. India should learn lesson from the next door neighbour and modify its economic policies, including the Exim policy with the sole motive of converting human factor from liability to an asset.

Since NGOs charge 15-22% rate of interest, we can say they

Directions: Read the following passage carefully to answer the given question. Some words/phrases are printed in bold to help you locate them while answer the question.

Bangladesh, a country numbering almost 140 million, whose population is 90 percent Muslim, is a prime example of a nation under siege from a deluge of NGOs. Since 1981, foreign NGOs have created an indigenous mercenary army and set up a parallel government of their own in the country. Given handsome salaries, bribes, awards, vehicles, machinery and huge funds, the nouveau riche mercenaries pretending to be writers, lawyers, teachers, artists and human–right activists, among others, have set up factories, printing presses, and publishing houses.

Bangladesh is probably the world leader in non–governmental organizations, NGOs, perhaps because economically it is near the bottom of the heap. The 20,000 or so NGOs there operate mainly in the country's 86,000 villages, providing education, health, small loans and agricultural development far more efficiently than the corrupt and inefficient government. Yet, while outsiders have lavished praise on the NGOs, Bangladeshis themselves are ambivalent. Some fear the organizations are becoming a parallel State, financed by foreigners and accountable to nobody.

Most of the foreign money (around $ 250m a year) goes to a handful of famous NGOs such as the Grameen Bank, the Bangladesh Rural Advancement Committee (BRAC), Proshika and the Association for Social Advancement. These are among the biggest rural–development organizations in the world, and they have an awesome reach.

BRAC alone has 1900 full–time employees, 34,000 part–time teachers, and 2.3m members (96% female) in 66,000 villages. Its schools admit only those who do not attend or have dropped out of government schools, and at least 70% of these must be girls. It hires teachers from each village, of whom 96% are women without teaching qualifications. They run schools in rented thatched huts, set neither exams nor homework, and have flexible school hours that enable children to work in the fields with their parents, reducing the incentive to drop out. Teachers are paid 600 taka ($ 12) a month and reach children that government teachers (paid six times as much) cannot.

The Grameen Bank has pioneered small loans to the poor. Commercial banks say it is too risky to make loans of around $100 to people without assets. But Grameen organizes borrowers into groups which guarantee a loan to any member (exerting peer pressure for repayment). Its repayment rate is over 95%. Other NGOs have followed this route, and now more than poor people (almost all women) have obtained small loans for shops, sewing machines, chicken farming and the like.

Micro–credit is one reason for the fall in poverty in Bangladesh, from 59% of the population in 1991–92 to 53% in 1995–96. A more important reason is the attention to women that NGOs have given. By directing education, jobs and credit at women, the NGOs have created a social revolution in a conservative Muslim society. This is mainly why the fertility rate in Bangladesh has crashed from 6.1 births per woman in 1960 to 3.4 births today. It is expected to decline to 2.5 births by 2010. The mullahs hate NGOs for eroding the traditional male–dominated structure, and occasionally attack their offices.

Resentment also comes from politicians, bureaucrats and leftists, all of whose shortcomings have been exposed by the success of NGOs. Leftwing critics accuse NGOs of exploitative rates of interest: BRAC charges 15%, Grameen up to 22%. Yet the high rate of repayment is the best evidence of affordability. In fact, in labour–intensive work, interest charges are a small proportion of total costs.

Grameen Bank has a policy of only giving its loans to women. This has led to calls that its effects are weakening the institution of the family. It is interested in pursuing a policy that will lead Bangladesh to a situation to that we see in the West where the institution of marriage is on the retreat (marriage break down is at an all time high). When one examines who the patrons of the Grameen Bank are things become much clearer. The World Bank, ADB together with the UN, sets the whole agenda of the Grameen Bank. The World Bank is of course the best example of an NGO, whose abject failures at alleviating poverty are all too well documented.

Politicians complain that NGOs have money and power without accountability, embezzle foreign funds and cook their books. The NGOs reply that their accounts are audited, and sometimes not just in Bangladesh but also, to satisfy donors, by auditors abroad. They say they are accountable both to donors and the villagers they serve. The easy availability of donor funds has encouraged some crooks to set themselves up as NGOs. But corruption among NGOs is a trickle compared to the rivers in government.

FDI, as per the passage includes

Directions: Read the following passage carefully to answer the given question. 

In 1971, China contributed US $ 2.78 billion to world trade (exports), which was 0.82 percent of world trade. Since then, its contribution to world trade consistently increased: US $ 183.59 billion (3.37 percent) in 1998; and US $ 250 billion (over 4 percent) in 2001. India's contribution in 1971 was US $ 2.04 billion (0.60 percent of world trade) and US $ 33.44 billion in 1998. In 2001, we achieved exports of US $ 44.5 billion (0.70 percent of world trade). The export figures between India and China showed a big difference in 2001 though it was marginal in 1971.

The key factors influencing world trade are: External trade and foreign investment; relocation of global manufacturing basis; and rapid technological developments. External trade & foreign investment: Capital flows in the form of foreign direct investment (FDI's) and foreign invested enterprises (FIE's). Cross border acquisitions and mergers constituted a major percentage of FDI flows. FDI flow to developing countries increased by six fold from 1990 to 1998. During 1995-98, FDI flow increased to US $ 1886 billion. Of this, China alone attracted US $ 164 billion while India's share was only US $ 11 billion. The impact of FDI to a host country's economy is widely recognised. The foreign-funded firms contributed to nearly 45 per cent of China's export during 1999.

Relocation of global manufacturing basis: Large-scale shift in global manufacturing basis to Asian countries has occurred through the 1990's, with factor costs, especially wages increased in developed countries. The other factor which determined the choice of shifting was the labour laws and work related rules and regulations. China which was associated with rigid labour laws and other economy related rules and regulations came out with a concept of special export zones which are a foreign enclave in the country where no labour laws and other economy related rules are made applicable. In fact, China soon realised that it may not be possible to change labour laws and other economy related rules in the country so soon. However, having realised their importance for attracting FDI and to the growth of their economy, it accepted the idea of creating these foreign enclaves such as Shenzen and attracted foreign capital and technology. That is the reason why approximately 45 per cent of China's exports come from such zones.

Rapid technological developments: Rapid technological developments have led to a steep decline in transportation and telecommunication costs. These in turn have vastly reduced the impact of physical distance for global commerce. Though China had a distinct disadvantage of the lack of knowledge of English, it has come out with Chinese as computer compatible language. It has declared that Chinese will be the world's no.1 computer language soon. The flow of FDI capital has also brought with it the technology from the West including the USA. The cultural ties with Taiwan have helped China to a great extent in achieving access to technology and export.

China has achieved the number one position in world trade in regard to toys and stuffed toys. China captured, in 1999, business to the tune of US $ 52 billion out of global US $ 300 billion in textile and clothing. China achieved more than US $ 20 billion in world trade of US $ 850 billion in electronics and computers in 1999-2000. China's next target is gem and jewellery which is low cost capital but highly labour oriented industry of approximately US $ 40 billion. China is equally exploring organic and inorganic chemicals which had a world trade of US $ 574 billion last year.

Destination wise analysis will show that in the USA's import of top 100 items, China figures among top exporters in respect of 61 items while India appears in only 15 items. Similar is the position in regard to the European Union. In the top 100 items of import by Japan, China appears at 76 items. China has foreign reserves of more than US $ 250 billion but the share of FDI's in it is a question mark.

Should India be afraid of China or should prepare for competing with China in international trade. This writer is of the opinion that where we cannot compete we should co-operate with China and bring some success to our industry by importing semi finished products both for domestic and international trade. India should learn lesson from the next door neighbour and modify its economic policies, including the Exim policy with the sole motive of converting human factor from liability to an asset.

Choose the word most similar in meaning to the word ‘acquisitions’, as used in the passage.

Directions: Read the following passage carefully to answer the given question. 

In 1971, China contributed US $ 2.78 billion to world trade (exports), which was 0.82 percent of world trade. Since then, its contribution to world trade consistently increased: US $ 183.59 billion (3.37 percent) in 1998; and US $ 250 billion (over 4 percent) in 2001. India's contribution in 1971 was US $ 2.04 billion (0.60 percent of world trade) and US $ 33.44 billion in 1998. In 2001, we achieved exports of US $ 44.5 billion (0.70 percent of world trade). The export figures between India and China showed a big difference in 2001 though it was marginal in 1971.

The key factors influencing world trade are: External trade and foreign investment; relocation of global manufacturing basis; and rapid technological developments. External trade & foreign investment: Capital flows in the form of foreign direct investment (FDI's) and foreign invested enterprises (FIE's). Cross border acquisitions and mergers constituted a major percentage of FDI flows. FDI flow to developing countries increased by six fold from 1990 to 1998. During 1995-98, FDI flow increased to US $ 1886 billion. Of this, China alone attracted US $ 164 billion while India's share was only US $ 11 billion. The impact of FDI to a host country's economy is widely recognised. The foreign-funded firms contributed to nearly 45 per cent of China's export during 1999.

Relocation of global manufacturing basis: Large-scale shift in global manufacturing basis to Asian countries has occurred through the 1990's, with factor costs, especially wages increased in developed countries. The other factor which determined the choice of shifting was the labour laws and work related rules and regulations. China which was associated with rigid labour laws and other economy related rules and regulations came out with a concept of special export zones which are a foreign enclave in the country where no labour laws and other economy related rules are made applicable. In fact, China soon realised that it may not be possible to change labour laws and other economy related rules in the country so soon. However, having realised their importance for attracting FDI and to the growth of their economy, it accepted the idea of creating these foreign enclaves such as Shenzen and attracted foreign capital and technology. That is the reason why approximately 45 per cent of China's exports come from such zones.

Rapid technological developments: Rapid technological developments have led to a steep decline in transportation and telecommunication costs. These in turn have vastly reduced the impact of physical distance for global commerce. Though China had a distinct disadvantage of the lack of knowledge of English, it has come out with Chinese as computer compatible language. It has declared that Chinese will be the world's no.1 computer language soon. The flow of FDI capital has also brought with it the technology from the West including the USA. The cultural ties with Taiwan have helped China to a great extent in achieving access to technology and export.

China has achieved the number one position in world trade in regard to toys and stuffed toys. China captured, in 1999, business to the tune of US $ 52 billion out of global US $ 300 billion in textile and clothing. China achieved more than US $ 20 billion in world trade of US $ 850 billion in electronics and computers in 1999-2000. China's next target is gem and jewellery which is low cost capital but highly labour oriented industry of approximately US $ 40 billion. China is equally exploring organic and inorganic chemicals which had a world trade of US $ 574 billion last year.

Destination wise analysis will show that in the USA's import of top 100 items, China figures among top exporters in respect of 61 items while India appears in only 15 items. Similar is the position in regard to the European Union. In the top 100 items of import by Japan, China appears at 76 items. China has foreign reserves of more than US $ 250 billion but the share of FDI's in it is a question mark.

Should India be afraid of China or should prepare for competing with China in international trade. This writer is of the opinion that where we cannot compete we should co-operate with China and bring some success to our industry by importing semi finished products both for domestic and international trade. India should learn lesson from the next door neighbour and modify its economic policies, including the Exim policy with the sole motive of converting human factor from liability to an asset.

In 1999, China’s share in the World market in textile and clothing was

Directions: Read the following passage carefully to answer the given question. 

In 1971, China contributed US $ 2.78 billion to world trade (exports), which was 0.82 percent of world trade. Since then, its contribution to world trade consistently increased: US $ 183.59 billion (3.37 percent) in 1998; and US $ 250 billion (over 4 percent) in 2001. India's contribution in 1971 was US $ 2.04 billion (0.60 percent of world trade) and US $ 33.44 billion in 1998. In 2001, we achieved exports of US $ 44.5 billion (0.70 percent of world trade). The export figures between India and China showed a big difference in 2001 though it was marginal in 1971.

The key factors influencing world trade are: External trade and foreign investment; relocation of global manufacturing basis; and rapid technological developments. External trade & foreign investment: Capital flows in the form of foreign direct investment (FDI's) and foreign invested enterprises (FIE's). Cross border acquisitions and mergers constituted a major percentage of FDI flows. FDI flow to developing countries increased by six fold from 1990 to 1998. During 1995-98, FDI flow increased to US $ 1886 billion. Of this, China alone attracted US $ 164 billion while India's share was only US $ 11 billion. The impact of FDI to a host country's economy is widely recognised. The foreign-funded firms contributed to nearly 45 per cent of China's export during 1999.

Relocation of global manufacturing basis: Large-scale shift in global manufacturing basis to Asian countries has occurred through the 1990's, with factor costs, especially wages increased in developed countries. The other factor which determined the choice of shifting was the labour laws and work related rules and regulations. China which was associated with rigid labour laws and other economy related rules and regulations came out with a concept of special export zones which are a foreign enclave in the country where no labour laws and other economy related rules are made applicable. In fact, China soon realised that it may not be possible to change labour laws and other economy related rules in the country so soon. However, having realised their importance for attracting FDI and to the growth of their economy, it accepted the idea of creating these foreign enclaves such as Shenzen and attracted foreign capital and technology. That is the reason why approximately 45 per cent of China's exports come from such zones.

Rapid technological developments: Rapid technological developments have led to a steep decline in transportation and telecommunication costs. These in turn have vastly reduced the impact of physical distance for global commerce. Though China had a distinct disadvantage of the lack of knowledge of English, it has come out with Chinese as computer compatible language. It has declared that Chinese will be the world's no.1 computer language soon. The flow of FDI capital has also brought with it the technology from the West including the USA. The cultural ties with Taiwan have helped China to a great extent in achieving access to technology and export.

China has achieved the number one position in world trade in regard to toys and stuffed toys. China captured, in 1999, business to the tune of US $ 52 billion out of global US $ 300 billion in textile and clothing. China achieved more than US $ 20 billion in world trade of US $ 850 billion in electronics and computers in 1999-2000. China's next target is gem and jewellery which is low cost capital but highly labour oriented industry of approximately US $ 40 billion. China is equally exploring organic and inorganic chemicals which had a world trade of US $ 574 billion last year.

Destination wise analysis will show that in the USA's import of top 100 items, China figures among top exporters in respect of 61 items while India appears in only 15 items. Similar is the position in regard to the European Union. In the top 100 items of import by Japan, China appears at 76 items. China has foreign reserves of more than US $ 250 billion but the share of FDI's in it is a question mark.

Should India be afraid of China or should prepare for competing with China in international trade. This writer is of the opinion that where we cannot compete we should co-operate with China and bring some success to our industry by importing semi finished products both for domestic and international trade. India should learn lesson from the next door neighbour and modify its economic policies, including the Exim policy with the sole motive of converting human factor from liability to an asset.

Why is Bangladesh probably the world leader in NGOs?

Directions: Read the following passage carefully to answer the given question. Some words/phrases are printed in bold to help you locate them while answer the question.

Bangladesh, a country numbering almost 140 million, whose population is 90 percent Muslim, is a prime example of a nation under siege from a deluge of NGOs. Since 1981, foreign NGOs have created an indigenous mercenary army and set up a parallel government of their own in the country. Given handsome salaries, bribes, awards, vehicles, machinery and huge funds, the nouveau riche mercenaries pretending to be writers, lawyers, teachers, artists and human–right activists, among others, have set up factories, printing presses, and publishing houses.

Bangladesh is probably the world leader in non–governmental organizations, NGOs, perhaps because economically it is near the bottom of the heap. The 20,000 or so NGOs there operate mainly in the country's 86,000 villages, providing education, health, small loans and agricultural development far more efficiently than the corrupt and inefficient government. Yet, while outsiders have lavished praise on the NGOs, Bangladeshis themselves are ambivalent. Some fear the organizations are becoming a parallel State, financed by foreigners and accountable to nobody.

Most of the foreign money (around $ 250m a year) goes to a handful of famous NGOs such as the Grameen Bank, the Bangladesh Rural Advancement Committee (BRAC), Proshika and the Association for Social Advancement. These are among the biggest rural–development organizations in the world, and they have an awesome reach.

BRAC alone has 1900 full–time employees, 34,000 part–time teachers, and 2.3m members (96% female) in 66,000 villages. Its schools admit only those who do not attend or have dropped out of government schools, and at least 70% of these must be girls. It hires teachers from each village, of whom 96% are women without teaching qualifications. They run schools in rented thatched huts, set neither exams nor homework, and have flexible school hours that enable children to work in the fields with their parents, reducing the incentive to drop out. Teachers are paid 600 taka ($ 12) a month and reach children that government teachers (paid six times as much) cannot.

The Grameen Bank has pioneered small loans to the poor. Commercial banks say it is too risky to make loans of around $100 to people without assets. But Grameen organizes borrowers into groups which guarantee a loan to any member (exerting peer pressure for repayment). Its repayment rate is over 95%. Other NGOs have followed this route, and now more than poor people (almost all women) have obtained small loans for shops, sewing machines, chicken farming and the like.

Micro–credit is one reason for the fall in poverty in Bangladesh, from 59% of the population in 1991–92 to 53% in 1995–96. A more important reason is the attention to women that NGOs have given. By directing education, jobs and credit at women, the NGOs have created a social revolution in a conservative Muslim society. This is mainly why the fertility rate in Bangladesh has crashed from 6.1 births per woman in 1960 to 3.4 births today. It is expected to decline to 2.5 births by 2010. The mullahs hate NGOs for eroding the traditional male–dominated structure, and occasionally attack their offices.

Resentment also comes from politicians, bureaucrats and leftists, all of whose shortcomings have been exposed by the success of NGOs. Leftwing critics accuse NGOs of exploitative rates of interest: BRAC charges 15%, Grameen up to 22%. Yet the high rate of repayment is the best evidence of affordability. In fact, in labour–intensive work, interest charges are a small proportion of total costs.

Grameen Bank has a policy of only giving its loans to women. This has led to calls that its effects are weakening the institution of the family. It is interested in pursuing a policy that will lead Bangladesh to a situation to that we see in the West where the institution of marriage is on the retreat (marriage break down is at an all time high). When one examines who the patrons of the Grameen Bank are things become much clearer. The World Bank, ADB together with the UN, sets the whole agenda of the Grameen Bank. The World Bank is of course the best example of an NGO, whose abject failures at alleviating poverty are all too well documented.

Politicians complain that NGOs have money and power without accountability, embezzle foreign funds and cook their books. The NGOs reply that their accounts are audited, and sometimes not just in Bangladesh but also, to satisfy donors, by auditors abroad. They say they are accountable both to donors and the villagers they serve. The easy availability of donor funds has encouraged some crooks to set themselves up as NGOs. But corruption among NGOs is a trickle compared to the rivers in government.

Choose the word most similar in meaning to the word 'awesome', as used in the passage.

Directions: Read the following passage carefully to answer the given question. Some words/phrases are printed in bold to help you locate them while answer the question.

Bangladesh, a country numbering almost 140 million, whose population is 90 percent Muslim, is a prime example of a nation under siege from a deluge of NGOs. Since 1981, foreign NGOs have created an indigenous mercenary army and set up a parallel government of their own in the country. Given handsome salaries, bribes, awards, vehicles, machinery and huge funds, the nouveau riche mercenaries pretending to be writers, lawyers, teachers, artists and human–right activists, among others, have set up factories, printing presses, and publishing houses.

Bangladesh is probably the world leader in non–governmental organizations, NGOs, perhaps because economically it is near the bottom of the heap. The 20,000 or so NGOs there operate mainly in the country's 86,000 villages, providing education, health, small loans and agricultural development far more efficiently than the corrupt and inefficient government. Yet, while outsiders have lavished praise on the NGOs, Bangladeshis themselves are ambivalent. Some fear the organizations are becoming a parallel State, financed by foreigners and accountable to nobody.

Most of the foreign money (around $ 250m a year) goes to a handful of famous NGOs such as the Grameen Bank, the Bangladesh Rural Advancement Committee (BRAC), Proshika and the Association for Social Advancement. These are among the biggest rural–development organizations in the world, and they have an awesome reach.

BRAC alone has 1900 full–time employees, 34,000 part–time teachers, and 2.3m members (96% female) in 66,000 villages. Its schools admit only those who do not attend or have dropped out of government schools, and at least 70% of these must be girls. It hires teachers from each village, of whom 96% are women without teaching qualifications. They run schools in rented thatched huts, set neither exams nor homework, and have flexible school hours that enable children to work in the fields with their parents, reducing the incentive to drop out. Teachers are paid 600 taka ($ 12) a month and reach children that government teachers (paid six times as much) cannot.

The Grameen Bank has pioneered small loans to the poor. Commercial banks say it is too risky to make loans of around $100 to people without assets. But Grameen organizes borrowers into groups which guarantee a loan to any member (exerting peer pressure for repayment). Its repayment rate is over 95%. Other NGOs have followed this route, and now more than poor people (almost all women) have obtained small loans for shops, sewing machines, chicken farming and the like.

Micro–credit is one reason for the fall in poverty in Bangladesh, from 59% of the population in 1991–92 to 53% in 1995–96. A more important reason is the attention to women that NGOs have given. By directing education, jobs and credit at women, the NGOs have created a social revolution in a conservative Muslim society. This is mainly why the fertility rate in Bangladesh has crashed from 6.1 births per woman in 1960 to 3.4 births today. It is expected to decline to 2.5 births by 2010. The mullahs hate NGOs for eroding the traditional male–dominated structure, and occasionally attack their offices.

Resentment also comes from politicians, bureaucrats and leftists, all of whose shortcomings have been exposed by the success of NGOs. Leftwing critics accuse NGOs of exploitative rates of interest: BRAC charges 15%, Grameen up to 22%. Yet the high rate of repayment is the best evidence of affordability. In fact, in labour–intensive work, interest charges are a small proportion of total costs.

Grameen Bank has a policy of only giving its loans to women. This has led to calls that its effects are weakening the institution of the family. It is interested in pursuing a policy that will lead Bangladesh to a situation to that we see in the West where the institution of marriage is on the retreat (marriage break down is at an all time high). When one examines who the patrons of the Grameen Bank are things become much clearer. The World Bank, ADB together with the UN, sets the whole agenda of the Grameen Bank. The World Bank is of course the best example of an NGO, whose abject failures at alleviating poverty are all too well documented.

Politicians complain that NGOs have money and power without accountability, embezzle foreign funds and cook their books. The NGOs reply that their accounts are audited, and sometimes not just in Bangladesh but also, to satisfy donors, by auditors abroad. They say they are accountable both to donors and the villagers they serve. The easy availability of donor funds has encouraged some crooks to set themselves up as NGOs. But corruption among NGOs is a trickle compared to the rivers in government.

Choose the word most opposite in meaning to the word ‘Realised’, as used in the passage.

Directions: Read the following passage carefully to answer the given question. 

In 1971, China contributed US $ 2.78 billion to world trade (exports), which was 0.82 percent of world trade. Since then, its contribution to world trade consistently increased: US $ 183.59 billion (3.37 percent) in 1998; and US $ 250 billion (over 4 percent) in 2001. India's contribution in 1971 was US $ 2.04 billion (0.60 percent of world trade) and US $ 33.44 billion in 1998. In 2001, we achieved exports of US $ 44.5 billion (0.70 percent of world trade). The export figures between India and China showed a big difference in 2001 though it was marginal in 1971.

The key factors influencing world trade are: External trade and foreign investment; relocation of global manufacturing basis; and rapid technological developments. External trade & foreign investment: Capital flows in the form of foreign direct investment (FDI's) and foreign invested enterprises (FIE's). Cross border acquisitions and mergers constituted a major percentage of FDI flows. FDI flow to developing countries increased by six fold from 1990 to 1998. During 1995-98, FDI flow increased to US $ 1886 billion. Of this, China alone attracted US $ 164 billion while India's share was only US $ 11 billion. The impact of FDI to a host country's economy is widely recognised. The foreign-funded firms contributed to nearly 45 per cent of China's export during 1999.

Relocation of global manufacturing basis: Large-scale shift in global manufacturing basis to Asian countries has occurred through the 1990's, with factor costs, especially wages increased in developed countries. The other factor which determined the choice of shifting was the labour laws and work related rules and regulations. China which was associated with rigid labour laws and other economy related rules and regulations came out with a concept of special export zones which are a foreign enclave in the country where no labour laws and other economy related rules are made applicable. In fact, China soon realised that it may not be possible to change labour laws and other economy related rules in the country so soon. However, having realised their importance for attracting FDI and to the growth of their economy, it accepted the idea of creating these foreign enclaves such as Shenzen and attracted foreign capital and technology. That is the reason why approximately 45 per cent of China's exports come from such zones.

Rapid technological developments: Rapid technological developments have led to a steep decline in transportation and telecommunication costs. These in turn have vastly reduced the impact of physical distance for global commerce. Though China had a distinct disadvantage of the lack of knowledge of English, it has come out with Chinese as computer compatible language. It has declared that Chinese will be the world's no.1 computer language soon. The flow of FDI capital has also brought with it the technology from the West including the USA. The cultural ties with Taiwan have helped China to a great extent in achieving access to technology and export.

China has achieved the number one position in world trade in regard to toys and stuffed toys. China captured, in 1999, business to the tune of US $ 52 billion out of global US $ 300 billion in textile and clothing. China achieved more than US $ 20 billion in world trade of US $ 850 billion in electronics and computers in 1999-2000. China's next target is gem and jewellery which is low cost capital but highly labour oriented industry of approximately US $ 40 billion. China is equally exploring organic and inorganic chemicals which had a world trade of US $ 574 billion last year.

Destination wise analysis will show that in the USA's import of top 100 items, China figures among top exporters in respect of 61 items while India appears in only 15 items. Similar is the position in regard to the European Union. In the top 100 items of import by Japan, China appears at 76 items. China has foreign reserves of more than US $ 250 billion but the share of FDI's in it is a question mark.

Should India be afraid of China or should prepare for competing with China in international trade. This writer is of the opinion that where we cannot compete we should co-operate with China and bring some success to our industry by importing semi finished products both for domestic and international trade. India should learn lesson from the next door neighbour and modify its economic policies, including the Exim policy with the sole motive of converting human factor from liability to an asset.

Choose the word most similar in meaning to the word ‘enclave’, as used in the passage.

Directions: Read the following passage carefully to answer the given question. 

In 1971, China contributed US $ 2.78 billion to world trade (exports), which was 0.82 percent of world trade. Since then, its contribution to world trade consistently increased: US $ 183.59 billion (3.37 percent) in 1998; and US $ 250 billion (over 4 percent) in 2001. India's contribution in 1971 was US $ 2.04 billion (0.60 percent of world trade) and US $ 33.44 billion in 1998. In 2001, we achieved exports of US $ 44.5 billion (0.70 percent of world trade). The export figures between India and China showed a big difference in 2001 though it was marginal in 1971.

The key factors influencing world trade are: External trade and foreign investment; relocation of global manufacturing basis; and rapid technological developments. External trade & foreign investment: Capital flows in the form of foreign direct investment (FDI's) and foreign invested enterprises (FIE's). Cross border acquisitions and mergers constituted a major percentage of FDI flows. FDI flow to developing countries increased by six fold from 1990 to 1998. During 1995-98, FDI flow increased to US $ 1886 billion. Of this, China alone attracted US $ 164 billion while India's share was only US $ 11 billion. The impact of FDI to a host country's economy is widely recognised. The foreign-funded firms contributed to nearly 45 per cent of China's export during 1999.

Relocation of global manufacturing basis: Large-scale shift in global manufacturing basis to Asian countries has occurred through the 1990's, with factor costs, especially wages increased in developed countries. The other factor which determined the choice of shifting was the labour laws and work related rules and regulations. China which was associated with rigid labour laws and other economy related rules and regulations came out with a concept of special export zones which are a foreign enclave in the country where no labour laws and other economy related rules are made applicable. In fact, China soon realised that it may not be possible to change labour laws and other economy related rules in the country so soon. However, having realised their importance for attracting FDI and to the growth of their economy, it accepted the idea of creating these foreign enclaves such as Shenzen and attracted foreign capital and technology. That is the reason why approximately 45 per cent of China's exports come from such zones.

Rapid technological developments: Rapid technological developments have led to a steep decline in transportation and telecommunication costs. These in turn have vastly reduced the impact of physical distance for global commerce. Though China had a distinct disadvantage of the lack of knowledge of English, it has come out with Chinese as computer compatible language. It has declared that Chinese will be the world's no.1 computer language soon. The flow of FDI capital has also brought with it the technology from the West including the USA. The cultural ties with Taiwan have helped China to a great extent in achieving access to technology and export.

China has achieved the number one position in world trade in regard to toys and stuffed toys. China captured, in 1999, business to the tune of US $ 52 billion out of global US $ 300 billion in textile and clothing. China achieved more than US $ 20 billion in world trade of US $ 850 billion in electronics and computers in 1999-2000. China's next target is gem and jewellery which is low cost capital but highly labour oriented industry of approximately US $ 40 billion. China is equally exploring organic and inorganic chemicals which had a world trade of US $ 574 billion last year.

Destination wise analysis will show that in the USA's import of top 100 items, China figures among top exporters in respect of 61 items while India appears in only 15 items. Similar is the position in regard to the European Union. In the top 100 items of import by Japan, China appears at 76 items. China has foreign reserves of more than US $ 250 billion but the share of FDI's in it is a question mark.

Should India be afraid of China or should prepare for competing with China in international trade. This writer is of the opinion that where we cannot compete we should co-operate with China and bring some success to our industry by importing semi finished products both for domestic and international trade. India should learn lesson from the next door neighbour and modify its economic policies, including the Exim policy with the sole motive of converting human factor from liability to an asset.

Choose the word most opposite in meaning to the word 'retreat', as used in the passage.

Directions: Read the following passage carefully to answer the given question. Some words/phrases are printed in bold to help you locate them while answer the question.

Bangladesh, a country numbering almost 140 million, whose population is 90 percent Muslim, is a prime example of a nation under siege from a deluge of NGOs. Since 1981, foreign NGOs have created an indigenous mercenary army and set up a parallel government of their own in the country. Given handsome salaries, bribes, awards, vehicles, machinery and huge funds, the nouveau riche mercenaries pretending to be writers, lawyers, teachers, artists and human–right activists, among others, have set up factories, printing presses, and publishing houses.

Bangladesh is probably the world leader in non–governmental organizations, NGOs, perhaps because economically it is near the bottom of the heap. The 20,000 or so NGOs there operate mainly in the country's 86,000 villages, providing education, health, small loans and agricultural development far more efficiently than the corrupt and inefficient government. Yet, while outsiders have lavished praise on the NGOs, Bangladeshis themselves are ambivalent. Some fear the organizations are becoming a parallel State, financed by foreigners and accountable to nobody.

Most of the foreign money (around $ 250m a year) goes to a handful of famous NGOs such as the Grameen Bank, the Bangladesh Rural Advancement Committee (BRAC), Proshika and the Association for Social Advancement. These are among the biggest rural–development organizations in the world, and they have an awesome reach.

BRAC alone has 1900 full–time employees, 34,000 part–time teachers, and 2.3m members (96% female) in 66,000 villages. Its schools admit only those who do not attend or have dropped out of government schools, and at least 70% of these must be girls. It hires teachers from each village, of whom 96% are women without teaching qualifications. They run schools in rented thatched huts, set neither exams nor homework, and have flexible school hours that enable children to work in the fields with their parents, reducing the incentive to drop out. Teachers are paid 600 taka ($ 12) a month and reach children that government teachers (paid six times as much) cannot.

The Grameen Bank has pioneered small loans to the poor. Commercial banks say it is too risky to make loans of around $100 to people without assets. But Grameen organizes borrowers into groups which guarantee a loan to any member (exerting peer pressure for repayment). Its repayment rate is over 95%. Other NGOs have followed this route, and now more than poor people (almost all women) have obtained small loans for shops, sewing machines, chicken farming and the like.

Micro–credit is one reason for the fall in poverty in Bangladesh, from 59% of the population in 1991–92 to 53% in 1995–96. A more important reason is the attention to women that NGOs have given. By directing education, jobs and credit at women, the NGOs have created a social revolution in a conservative Muslim society. This is mainly why the fertility rate in Bangladesh has crashed from 6.1 births per woman in 1960 to 3.4 births today. It is expected to decline to 2.5 births by 2010. The mullahs hate NGOs for eroding the traditional male–dominated structure, and occasionally attack their offices.

Resentment also comes from politicians, bureaucrats and leftists, all of whose shortcomings have been exposed by the success of NGOs. Leftwing critics accuse NGOs of exploitative rates of interest: BRAC charges 15%, Grameen up to 22%. Yet the high rate of repayment is the best evidence of affordability. In fact, in labour–intensive work, interest charges are a small proportion of total costs.

Grameen Bank has a policy of only giving its loans to women. This has led to calls that its effects are weakening the institution of the family. It is interested in pursuing a policy that will lead Bangladesh to a situation to that we see in the West where the institution of marriage is on the retreat (marriage break down is at an all time high). When one examines who the patrons of the Grameen Bank are things become much clearer. The World Bank, ADB together with the UN, sets the whole agenda of the Grameen Bank. The World Bank is of course the best example of an NGO, whose abject failures at alleviating poverty are all too well documented.

Politicians complain that NGOs have money and power without accountability, embezzle foreign funds and cook their books. The NGOs reply that their accounts are audited, and sometimes not just in Bangladesh but also, to satisfy donors, by auditors abroad. They say they are accountable both to donors and the villagers they serve. The easy availability of donor funds has encouraged some crooks to set themselves up as NGOs. But corruption among NGOs is a trickle compared to the rivers in government.

Choose the word most opposite in meaning to the word 'Recognised', as used in the passage.

Directions: Read the following passage carefully to answer the given question. 

In 1971, China contributed US $ 2.78 billion to world trade (exports), which was 0.82 percent of world trade. Since then, its contribution to world trade consistently increased: US $ 183.59 billion (3.37 percent) in 1998; and US $ 250 billion (over 4 percent) in 2001. India's contribution in 1971 was US $ 2.04 billion (0.60 percent of world trade) and US $ 33.44 billion in 1998. In 2001, we achieved exports of US $ 44.5 billion (0.70 percent of world trade). The export figures between India and China showed a big difference in 2001 though it was marginal in 1971.

The key factors influencing world trade are: External trade and foreign investment; relocation of global manufacturing basis; and rapid technological developments. External trade & foreign investment: Capital flows in the form of foreign direct investment (FDI's) and foreign invested enterprises (FIE's). Cross border acquisitions and mergers constituted a major percentage of FDI flows. FDI flow to developing countries increased by six fold from 1990 to 1998. During 1995-98, FDI flow increased to US $ 1886 billion. Of this, China alone attracted US $ 164 billion while India's share was only US $ 11 billion. The impact of FDI to a host country's economy is widely recognised. The foreign-funded firms contributed to nearly 45 per cent of China's export during 1999.

Relocation of global manufacturing basis: Large-scale shift in global manufacturing basis to Asian countries has occurred through the 1990's, with factor costs, especially wages increased in developed countries. The other factor which determined the choice of shifting was the labour laws and work related rules and regulations. China which was associated with rigid labour laws and other economy related rules and regulations came out with a concept of special export zones which are a foreign enclave in the country where no labour laws and other economy related rules are made applicable. In fact, China soon realised that it may not be possible to change labour laws and other economy related rules in the country so soon. However, having realised their importance for attracting FDI and to the growth of their economy, it accepted the idea of creating these foreign enclaves such as Shenzen and attracted foreign capital and technology. That is the reason why approximately 45 per cent of China's exports come from such zones.

Rapid technological developments: Rapid technological developments have led to a steep decline in transportation and telecommunication costs. These in turn have vastly reduced the impact of physical distance for global commerce. Though China had a distinct disadvantage of the lack of knowledge of English, it has come out with Chinese as computer compatible language. It has declared that Chinese will be the world's no.1 computer language soon. The flow of FDI capital has also brought with it the technology from the West including the USA. The cultural ties with Taiwan have helped China to a great extent in achieving access to technology and export.

China has achieved the number one position in world trade in regard to toys and stuffed toys. China captured, in 1999, business to the tune of US $ 52 billion out of global US $ 300 billion in textile and clothing. China achieved more than US $ 20 billion in world trade of US $ 850 billion in electronics and computers in 1999-2000. China's next target is gem and jewellery which is low cost capital but highly labour oriented industry of approximately US $ 40 billion. China is equally exploring organic and inorganic chemicals which had a world trade of US $ 574 billion last year.

Destination wise analysis will show that in the USA's import of top 100 items, China figures among top exporters in respect of 61 items while India appears in only 15 items. Similar is the position in regard to the European Union. In the top 100 items of import by Japan, China appears at 76 items. China has foreign reserves of more than US $ 250 billion but the share of FDI's in it is a question mark.

Should India be afraid of China or should prepare for competing with China in international trade. This writer is of the opinion that where we cannot compete we should co-operate with China and bring some success to our industry by importing semi finished products both for domestic and international trade. India should learn lesson from the next door neighbour and modify its economic policies, including the Exim policy with the sole motive of converting human factor from liability to an asset.

China circumvented its labour laws through

Directions: Read the following passage carefully to answer the given question. 

In 1971, China contributed US $ 2.78 billion to world trade (exports), which was 0.82 percent of world trade. Since then, its contribution to world trade consistently increased: US $ 183.59 billion (3.37 percent) in 1998; and US $ 250 billion (over 4 percent) in 2001. India's contribution in 1971 was US $ 2.04 billion (0.60 percent of world trade) and US $ 33.44 billion in 1998. In 2001, we achieved exports of US $ 44.5 billion (0.70 percent of world trade). The export figures between India and China showed a big difference in 2001 though it was marginal in 1971.

The key factors influencing world trade are: External trade and foreign investment; relocation of global manufacturing basis; and rapid technological developments. External trade & foreign investment: Capital flows in the form of foreign direct investment (FDI's) and foreign invested enterprises (FIE's). Cross border acquisitions and mergers constituted a major percentage of FDI flows. FDI flow to developing countries increased by six fold from 1990 to 1998. During 1995-98, FDI flow increased to US $ 1886 billion. Of this, China alone attracted US $ 164 billion while India's share was only US $ 11 billion. The impact of FDI to a host country's economy is widely recognised. The foreign-funded firms contributed to nearly 45 per cent of China's export during 1999.

Relocation of global manufacturing basis: Large-scale shift in global manufacturing basis to Asian countries has occurred through the 1990's, with factor costs, especially wages increased in developed countries. The other factor which determined the choice of shifting was the labour laws and work related rules and regulations. China which was associated with rigid labour laws and other economy related rules and regulations came out with a concept of special export zones which are a foreign enclave in the country where no labour laws and other economy related rules are made applicable. In fact, China soon realised that it may not be possible to change labour laws and other economy related rules in the country so soon. However, having realised their importance for attracting FDI and to the growth of their economy, it accepted the idea of creating these foreign enclaves such as Shenzen and attracted foreign capital and technology. That is the reason why approximately 45 per cent of China's exports come from such zones.

Rapid technological developments: Rapid technological developments have led to a steep decline in transportation and telecommunication costs. These in turn have vastly reduced the impact of physical distance for global commerce. Though China had a distinct disadvantage of the lack of knowledge of English, it has come out with Chinese as computer compatible language. It has declared that Chinese will be the world's no.1 computer language soon. The flow of FDI capital has also brought with it the technology from the West including the USA. The cultural ties with Taiwan have helped China to a great extent in achieving access to technology and export.

China has achieved the number one position in world trade in regard to toys and stuffed toys. China captured, in 1999, business to the tune of US $ 52 billion out of global US $ 300 billion in textile and clothing. China achieved more than US $ 20 billion in world trade of US $ 850 billion in electronics and computers in 1999-2000. China's next target is gem and jewellery which is low cost capital but highly labour oriented industry of approximately US $ 40 billion. China is equally exploring organic and inorganic chemicals which had a world trade of US $ 574 billion last year.

Destination wise analysis will show that in the USA's import of top 100 items, China figures among top exporters in respect of 61 items while India appears in only 15 items. Similar is the position in regard to the European Union. In the top 100 items of import by Japan, China appears at 76 items. China has foreign reserves of more than US $ 250 billion but the share of FDI's in it is a question mark.

Should India be afraid of China or should prepare for competing with China in international trade. This writer is of the opinion that where we cannot compete we should co-operate with China and bring some success to our industry by importing semi finished products both for domestic and international trade. India should learn lesson from the next door neighbour and modify its economic policies, including the Exim policy with the sole motive of converting human factor from liability to an asset.

One of the reasons for rapid technological development of China was

Directions: Read the following passage carefully to answer the given question. 

In 1971, China contributed US $ 2.78 billion to world trade (exports), which was 0.82 percent of world trade. Since then, its contribution to world trade consistently increased: US $ 183.59 billion (3.37 percent) in 1998; and US $ 250 billion (over 4 percent) in 2001. India's contribution in 1971 was US $ 2.04 billion (0.60 percent of world trade) and US $ 33.44 billion in 1998. In 2001, we achieved exports of US $ 44.5 billion (0.70 percent of world trade). The export figures between India and China showed a big difference in 2001 though it was marginal in 1971.

The key factors influencing world trade are: External trade and foreign investment; relocation of global manufacturing basis; and rapid technological developments. External trade & foreign investment: Capital flows in the form of foreign direct investment (FDI's) and foreign invested enterprises (FIE's). Cross border acquisitions and mergers constituted a major percentage of FDI flows. FDI flow to developing countries increased by six fold from 1990 to 1998. During 1995-98, FDI flow increased to US $ 1886 billion. Of this, China alone attracted US $ 164 billion while India's share was only US $ 11 billion. The impact of FDI to a host country's economy is widely recognised. The foreign-funded firms contributed to nearly 45 per cent of China's export during 1999.

Relocation of global manufacturing basis: Large-scale shift in global manufacturing basis to Asian countries has occurred through the 1990's, with factor costs, especially wages increased in developed countries. The other factor which determined the choice of shifting was the labour laws and work related rules and regulations. China which was associated with rigid labour laws and other economy related rules and regulations came out with a concept of special export zones which are a foreign enclave in the country where no labour laws and other economy related rules are made applicable. In fact, China soon realised that it may not be possible to change labour laws and other economy related rules in the country so soon. However, having realised their importance for attracting FDI and to the growth of their economy, it accepted the idea of creating these foreign enclaves such as Shenzen and attracted foreign capital and technology. That is the reason why approximately 45 per cent of China's exports come from such zones.

Rapid technological developments: Rapid technological developments have led to a steep decline in transportation and telecommunication costs. These in turn have vastly reduced the impact of physical distance for global commerce. Though China had a distinct disadvantage of the lack of knowledge of English, it has come out with Chinese as computer compatible language. It has declared that Chinese will be the world's no.1 computer language soon. The flow of FDI capital has also brought with it the technology from the West including the USA. The cultural ties with Taiwan have helped China to a great extent in achieving access to technology and export.

China has achieved the number one position in world trade in regard to toys and stuffed toys. China captured, in 1999, business to the tune of US $ 52 billion out of global US $ 300 billion in textile and clothing. China achieved more than US $ 20 billion in world trade of US $ 850 billion in electronics and computers in 1999-2000. China's next target is gem and jewellery which is low cost capital but highly labour oriented industry of approximately US $ 40 billion. China is equally exploring organic and inorganic chemicals which had a world trade of US $ 574 billion last year.

Destination wise analysis will show that in the USA's import of top 100 items, China figures among top exporters in respect of 61 items while India appears in only 15 items. Similar is the position in regard to the European Union. In the top 100 items of import by Japan, China appears at 76 items. China has foreign reserves of more than US $ 250 billion but the share of FDI's in it is a question mark.

Should India be afraid of China or should prepare for competing with China in international trade. This writer is of the opinion that where we cannot compete we should co-operate with China and bring some success to our industry by importing semi finished products both for domestic and international trade. India should learn lesson from the next door neighbour and modify its economic policies, including the Exim policy with the sole motive of converting human factor from liability to an asset.

The point about payment of wages is given

Directions: Read the following passage carefully to answer the given question. Some words/phrases are printed in bold to help you locate them while answer the question.

Bangladesh, a country numbering almost 140 million, whose population is 90 percent Muslim, is a prime example of a nation under siege from a deluge of NGOs. Since 1981, foreign NGOs have created an indigenous mercenary army and set up a parallel government of their own in the country. Given handsome salaries, bribes, awards, vehicles, machinery and huge funds, the nouveau riche mercenaries pretending to be writers, lawyers, teachers, artists and human–right activists, among others, have set up factories, printing presses, and publishing houses.

Bangladesh is probably the world leader in non–governmental organizations, NGOs, perhaps because economically it is near the bottom of the heap. The 20,000 or so NGOs there operate mainly in the country's 86,000 villages, providing education, health, small loans and agricultural development far more efficiently than the corrupt and inefficient government. Yet, while outsiders have lavished praise on the NGOs, Bangladeshis themselves are ambivalent. Some fear the organizations are becoming a parallel State, financed by foreigners and accountable to nobody.

Most of the foreign money (around $ 250m a year) goes to a handful of famous NGOs such as the Grameen Bank, the Bangladesh Rural Advancement Committee (BRAC), Proshika and the Association for Social Advancement. These are among the biggest rural–development organizations in the world, and they have an awesome reach.

BRAC alone has 1900 full–time employees, 34,000 part–time teachers, and 2.3m members (96% female) in 66,000 villages. Its schools admit only those who do not attend or have dropped out of government schools, and at least 70% of these must be girls. It hires teachers from each village, of whom 96% are women without teaching qualifications. They run schools in rented thatched huts, set neither exams nor homework, and have flexible school hours that enable children to work in the fields with their parents, reducing the incentive to drop out. Teachers are paid 600 taka ($ 12) a month and reach children that government teachers (paid six times as much) cannot.

The Grameen Bank has pioneered small loans to the poor. Commercial banks say it is too risky to make loans of around $100 to people without assets. But Grameen organizes borrowers into groups which guarantee a loan to any member (exerting peer pressure for repayment). Its repayment rate is over 95%. Other NGOs have followed this route, and now more than poor people (almost all women) have obtained small loans for shops, sewing machines, chicken farming and the like.

Micro–credit is one reason for the fall in poverty in Bangladesh, from 59% of the population in 1991–92 to 53% in 1995–96. A more important reason is the attention to women that NGOs have given. By directing education, jobs and credit at women, the NGOs have created a social revolution in a conservative Muslim society. This is mainly why the fertility rate in Bangladesh has crashed from 6.1 births per woman in 1960 to 3.4 births today. It is expected to decline to 2.5 births by 2010. The mullahs hate NGOs for eroding the traditional male–dominated structure, and occasionally attack their offices.

Resentment also comes from politicians, bureaucrats and leftists, all of whose shortcomings have been exposed by the success of NGOs. Leftwing critics accuse NGOs of exploitative rates of interest: BRAC charges 15%, Grameen up to 22%. Yet the high rate of repayment is the best evidence of affordability. In fact, in labour–intensive work, interest charges are a small proportion of total costs.

Grameen Bank has a policy of only giving its loans to women. This has led to calls that its effects are weakening the institution of the family. It is interested in pursuing a policy that will lead Bangladesh to a situation to that we see in the West where the institution of marriage is on the retreat (marriage break down is at an all time high). When one examines who the patrons of the Grameen Bank are things become much clearer. The World Bank, ADB together with the UN, sets the whole agenda of the Grameen Bank. The World Bank is of course the best example of an NGO, whose abject failures at alleviating poverty are all too well documented.

Politicians complain that NGOs have money and power without accountability, embezzle foreign funds and cook their books. The NGOs reply that their accounts are audited, and sometimes not just in Bangladesh but also, to satisfy donors, by auditors abroad. They say they are accountable both to donors and the villagers they serve. The easy availability of donor funds has encouraged some crooks to set themselves up as NGOs. But corruption among NGOs is a trickle compared to the rivers in government.

The success of BRAC can be attributed to the fact that

Directions: Read the following passage carefully to answer the given question. Some words/phrases are printed in bold to help you locate them while answer the question.

Bangladesh, a country numbering almost 140 million, whose population is 90 percent Muslim, is a prime example of a nation under siege from a deluge of NGOs. Since 1981, foreign NGOs have created an indigenous mercenary army and set up a parallel government of their own in the country. Given handsome salaries, bribes, awards, vehicles, machinery and huge funds, the nouveau riche mercenaries pretending to be writers, lawyers, teachers, artists and human–right activists, among others, have set up factories, printing presses, and publishing houses.

Bangladesh is probably the world leader in non–governmental organizations, NGOs, perhaps because economically it is near the bottom of the heap. The 20,000 or so NGOs there operate mainly in the country's 86,000 villages, providing education, health, small loans and agricultural development far more efficiently than the corrupt and inefficient government. Yet, while outsiders have lavished praise on the NGOs, Bangladeshis themselves are ambivalent. Some fear the organizations are becoming a parallel State, financed by foreigners and accountable to nobody.

Most of the foreign money (around $ 250m a year) goes to a handful of famous NGOs such as the Grameen Bank, the Bangladesh Rural Advancement Committee (BRAC), Proshika and the Association for Social Advancement. These are among the biggest rural–development organizations in the world, and they have an awesome reach.

BRAC alone has 1900 full–time employees, 34,000 part–time teachers, and 2.3m members (96% female) in 66,000 villages. Its schools admit only those who do not attend or have dropped out of government schools, and at least 70% of these must be girls. It hires teachers from each village, of whom 96% are women without teaching qualifications. They run schools in rented thatched huts, set neither exams nor homework, and have flexible school hours that enable children to work in the fields with their parents, reducing the incentive to drop out. Teachers are paid 600 taka ($ 12) a month and reach children that government teachers (paid six times as much) cannot.

The Grameen Bank has pioneered small loans to the poor. Commercial banks say it is too risky to make loans of around $100 to people without assets. But Grameen organizes borrowers into groups which guarantee a loan to any member (exerting peer pressure for repayment). Its repayment rate is over 95%. Other NGOs have followed this route, and now more than poor people (almost all women) have obtained small loans for shops, sewing machines, chicken farming and the like.

Micro–credit is one reason for the fall in poverty in Bangladesh, from 59% of the population in 1991–92 to 53% in 1995–96. A more important reason is the attention to women that NGOs have given. By directing education, jobs and credit at women, the NGOs have created a social revolution in a conservative Muslim society. This is mainly why the fertility rate in Bangladesh has crashed from 6.1 births per woman in 1960 to 3.4 births today. It is expected to decline to 2.5 births by 2010. The mullahs hate NGOs for eroding the traditional male–dominated structure, and occasionally attack their offices.

Resentment also comes from politicians, bureaucrats and leftists, all of whose shortcomings have been exposed by the success of NGOs. Leftwing critics accuse NGOs of exploitative rates of interest: BRAC charges 15%, Grameen up to 22%. Yet the high rate of repayment is the best evidence of affordability. In fact, in labour–intensive work, interest charges are a small proportion of total costs.

Grameen Bank has a policy of only giving its loans to women. This has led to calls that its effects are weakening the institution of the family. It is interested in pursuing a policy that will lead Bangladesh to a situation to that we see in the West where the institution of marriage is on the retreat (marriage break down is at an all time high). When one examines who the patrons of the Grameen Bank are things become much clearer. The World Bank, ADB together with the UN, sets the whole agenda of the Grameen Bank. The World Bank is of course the best example of an NGO, whose abject failures at alleviating poverty are all too well documented.

Politicians complain that NGOs have money and power without accountability, embezzle foreign funds and cook their books. The NGOs reply that their accounts are audited, and sometimes not just in Bangladesh but also, to satisfy donors, by auditors abroad. They say they are accountable both to donors and the villagers they serve. The easy availability of donor funds has encouraged some crooks to set themselves up as NGOs. But corruption among NGOs is a trickle compared to the rivers in government.

The passage is

Directions: Read the following passage carefully to answer the given question. Some words/phrases are printed in bold to help you locate them while answer the question.

Bangladesh, a country numbering almost 140 million, whose population is 90 percent Muslim, is a prime example of a nation under siege from a deluge of NGOs. Since 1981, foreign NGOs have created an indigenous mercenary army and set up a parallel government of their own in the country. Given handsome salaries, bribes, awards, vehicles, machinery and huge funds, the nouveau riche mercenaries pretending to be writers, lawyers, teachers, artists and human–right activists, among others, have set up factories, printing presses, and publishing houses.

Bangladesh is probably the world leader in non–governmental organizations, NGOs, perhaps because economically it is near the bottom of the heap. The 20,000 or so NGOs there operate mainly in the country's 86,000 villages, providing education, health, small loans and agricultural development far more efficiently than the corrupt and inefficient government. Yet, while outsiders have lavished praise on the NGOs, Bangladeshis themselves are ambivalent. Some fear the organizations are becoming a parallel State, financed by foreigners and accountable to nobody.

Most of the foreign money (around $ 250m a year) goes to a handful of famous NGOs such as the Grameen Bank, the Bangladesh Rural Advancement Committee (BRAC), Proshika and the Association for Social Advancement. These are among the biggest rural–development organizations in the world, and they have an awesome reach.

BRAC alone has 1900 full–time employees, 34,000 part–time teachers, and 2.3m members (96% female) in 66,000 villages. Its schools admit only those who do not attend or have dropped out of government schools, and at least 70% of these must be girls. It hires teachers from each village, of whom 96% are women without teaching qualifications. They run schools in rented thatched huts, set neither exams nor homework, and have flexible school hours that enable children to work in the fields with their parents, reducing the incentive to drop out. Teachers are paid 600 taka ($ 12) a month and reach children that government teachers (paid six times as much) cannot.

The Grameen Bank has pioneered small loans to the poor. Commercial banks say it is too risky to make loans of around $100 to people without assets. But Grameen organizes borrowers into groups which guarantee a loan to any member (exerting peer pressure for repayment). Its repayment rate is over 95%. Other NGOs have followed this route, and now more than poor people (almost all women) have obtained small loans for shops, sewing machines, chicken farming and the like.

Micro–credit is one reason for the fall in poverty in Bangladesh, from 59% of the population in 1991–92 to 53% in 1995–96. A more important reason is the attention to women that NGOs have given. By directing education, jobs and credit at women, the NGOs have created a social revolution in a conservative Muslim society. This is mainly why the fertility rate in Bangladesh has crashed from 6.1 births per woman in 1960 to 3.4 births today. It is expected to decline to 2.5 births by 2010. The mullahs hate NGOs for eroding the traditional male–dominated structure, and occasionally attack their offices.

Resentment also comes from politicians, bureaucrats and leftists, all of whose shortcomings have been exposed by the success of NGOs. Leftwing critics accuse NGOs of exploitative rates of interest: BRAC charges 15%, Grameen up to 22%. Yet the high rate of repayment is the best evidence of affordability. In fact, in labour–intensive work, interest charges are a small proportion of total costs.

Grameen Bank has a policy of only giving its loans to women. This has led to calls that its effects are weakening the institution of the family. It is interested in pursuing a policy that will lead Bangladesh to a situation to that we see in the West where the institution of marriage is on the retreat (marriage break down is at an all time high). When one examines who the patrons of the Grameen Bank are things become much clearer. The World Bank, ADB together with the UN, sets the whole agenda of the Grameen Bank. The World Bank is of course the best example of an NGO, whose abject failures at alleviating poverty are all too well documented.

Politicians complain that NGOs have money and power without accountability, embezzle foreign funds and cook their books. The NGOs reply that their accounts are audited, and sometimes not just in Bangladesh but also, to satisfy donors, by auditors abroad. They say they are accountable both to donors and the villagers they serve. The easy availability of donor funds has encouraged some crooks to set themselves up as NGOs. But corruption among NGOs is a trickle compared to the rivers in government.

The shift in global manufacturing to Asian countries took place during the

Directions: Read the following passage carefully to answer the given question. 

In 1971, China contributed US $ 2.78 billion to world trade (exports), which was 0.82 percent of world trade. Since then, its contribution to world trade consistently increased: US $ 183.59 billion (3.37 percent) in 1998; and US $ 250 billion (over 4 percent) in 2001. India's contribution in 1971 was US $ 2.04 billion (0.60 percent of world trade) and US $ 33.44 billion in 1998. In 2001, we achieved exports of US $ 44.5 billion (0.70 percent of world trade). The export figures between India and China showed a big difference in 2001 though it was marginal in 1971.

The key factors influencing world trade are: External trade and foreign investment; relocation of global manufacturing basis; and rapid technological developments. External trade & foreign investment: Capital flows in the form of foreign direct investment (FDI's) and foreign invested enterprises (FIE's). Cross border acquisitions and mergers constituted a major percentage of FDI flows. FDI flow to developing countries increased by six fold from 1990 to 1998. During 1995-98, FDI flow increased to US $ 1886 billion. Of this, China alone attracted US $ 164 billion while India's share was only US $ 11 billion. The impact of FDI to a host country's economy is widely recognised. The foreign-funded firms contributed to nearly 45 per cent of China's export during 1999.

Relocation of global manufacturing basis: Large-scale shift in global manufacturing basis to Asian countries has occurred through the 1990's, with factor costs, especially wages increased in developed countries. The other factor which determined the choice of shifting was the labour laws and work related rules and regulations. China which was associated with rigid labour laws and other economy related rules and regulations came out with a concept of special export zones which are a foreign enclave in the country where no labour laws and other economy related rules are made applicable. In fact, China soon realised that it may not be possible to change labour laws and other economy related rules in the country so soon. However, having realised their importance for attracting FDI and to the growth of their economy, it accepted the idea of creating these foreign enclaves such as Shenzen and attracted foreign capital and technology. That is the reason why approximately 45 per cent of China's exports come from such zones.

Rapid technological developments: Rapid technological developments have led to a steep decline in transportation and telecommunication costs. These in turn have vastly reduced the impact of physical distance for global commerce. Though China had a distinct disadvantage of the lack of knowledge of English, it has come out with Chinese as computer compatible language. It has declared that Chinese will be the world's no.1 computer language soon. The flow of FDI capital has also brought with it the technology from the West including the USA. The cultural ties with Taiwan have helped China to a great extent in achieving access to technology and export.

China has achieved the number one position in world trade in regard to toys and stuffed toys. China captured, in 1999, business to the tune of US $ 52 billion out of global US $ 300 billion in textile and clothing. China achieved more than US $ 20 billion in world trade of US $ 850 billion in electronics and computers in 1999-2000. China's next target is gem and jewellery which is low cost capital but highly labour oriented industry of approximately US $ 40 billion. China is equally exploring organic and inorganic chemicals which had a world trade of US $ 574 billion last year.

Destination wise analysis will show that in the USA's import of top 100 items, China figures among top exporters in respect of 61 items while India appears in only 15 items. Similar is the position in regard to the European Union. In the top 100 items of import by Japan, China appears at 76 items. China has foreign reserves of more than US $ 250 billion but the share of FDI's in it is a question mark.

Should India be afraid of China or should prepare for competing with China in international trade. This writer is of the opinion that where we cannot compete we should co-operate with China and bring some success to our industry by importing semi finished products both for domestic and international trade. India should learn lesson from the next door neighbour and modify its economic policies, including the Exim policy with the sole motive of converting human factor from liability to an asset.

The phrase “low cost capital but highly labour oriented” means

Directions: Read the following passage carefully to answer the given question. 

In 1971, China contributed US $ 2.78 billion to world trade (exports), which was 0.82 percent of world trade. Since then, its contribution to world trade consistently increased: US $ 183.59 billion (3.37 percent) in 1998; and US $ 250 billion (over 4 percent) in 2001. India's contribution in 1971 was US $ 2.04 billion (0.60 percent of world trade) and US $ 33.44 billion in 1998. In 2001, we achieved exports of US $ 44.5 billion (0.70 percent of world trade). The export figures between India and China showed a big difference in 2001 though it was marginal in 1971.

The key factors influencing world trade are: External trade and foreign investment; relocation of global manufacturing basis; and rapid technological developments. External trade & foreign investment: Capital flows in the form of foreign direct investment (FDI's) and foreign invested enterprises (FIE's). Cross border acquisitions and mergers constituted a major percentage of FDI flows. FDI flow to developing countries increased by six fold from 1990 to 1998. During 1995-98, FDI flow increased to US $ 1886 billion. Of this, China alone attracted US $ 164 billion while India's share was only US $ 11 billion. The impact of FDI to a host country's economy is widely recognised. The foreign-funded firms contributed to nearly 45 per cent of China's export during 1999.

Relocation of global manufacturing basis: Large-scale shift in global manufacturing basis to Asian countries has occurred through the 1990's, with factor costs, especially wages increased in developed countries. The other factor which determined the choice of shifting was the labour laws and work related rules and regulations. China which was associated with rigid labour laws and other economy related rules and regulations came out with a concept of special export zones which are a foreign enclave in the country where no labour laws and other economy related rules are made applicable. In fact, China soon realised that it may not be possible to change labour laws and other economy related rules in the country so soon. However, having realised their importance for attracting FDI and to the growth of their economy, it accepted the idea of creating these foreign enclaves such as Shenzen and attracted foreign capital and technology. That is the reason why approximately 45 per cent of China's exports come from such zones.

Rapid technological developments: Rapid technological developments have led to a steep decline in transportation and telecommunication costs. These in turn have vastly reduced the impact of physical distance for global commerce. Though China had a distinct disadvantage of the lack of knowledge of English, it has come out with Chinese as computer compatible language. It has declared that Chinese will be the world's no.1 computer language soon. The flow of FDI capital has also brought with it the technology from the West including the USA. The cultural ties with Taiwan have helped China to a great extent in achieving access to technology and export.

China has achieved the number one position in world trade in regard to toys and stuffed toys. China captured, in 1999, business to the tune of US $ 52 billion out of global US $ 300 billion in textile and clothing. China achieved more than US $ 20 billion in world trade of US $ 850 billion in electronics and computers in 1999-2000. China's next target is gem and jewellery which is low cost capital but highly labour oriented industry of approximately US $ 40 billion. China is equally exploring organic and inorganic chemicals which had a world trade of US $ 574 billion last year.

Destination wise analysis will show that in the USA's import of top 100 items, China figures among top exporters in respect of 61 items while India appears in only 15 items. Similar is the position in regard to the European Union. In the top 100 items of import by Japan, China appears at 76 items. China has foreign reserves of more than US $ 250 billion but the share of FDI's in it is a question mark.

Should India be afraid of China or should prepare for competing with China in international trade. This writer is of the opinion that where we cannot compete we should co-operate with China and bring some success to our industry by importing semi finished products both for domestic and international trade. India should learn lesson from the next door neighbour and modify its economic policies, including the Exim policy with the sole motive of converting human factor from liability to an asset.

Like China, India should

Directions: Read the following passage carefully to answer the given question. 

In 1971, China contributed US $ 2.78 billion to world trade (exports), which was 0.82 percent of world trade. Since then, its contribution to world trade consistently increased: US $ 183.59 billion (3.37 percent) in 1998; and US $ 250 billion (over 4 percent) in 2001. India's contribution in 1971 was US $ 2.04 billion (0.60 percent of world trade) and US $ 33.44 billion in 1998. In 2001, we achieved exports of US $ 44.5 billion (0.70 percent of world trade). The export figures between India and China showed a big difference in 2001 though it was marginal in 1971.

The key factors influencing world trade are: External trade and foreign investment; relocation of global manufacturing basis; and rapid technological developments. External trade & foreign investment: Capital flows in the form of foreign direct investment (FDI's) and foreign invested enterprises (FIE's). Cross border acquisitions and mergers constituted a major percentage of FDI flows. FDI flow to developing countries increased by six fold from 1990 to 1998. During 1995-98, FDI flow increased to US $ 1886 billion. Of this, China alone attracted US $ 164 billion while India's share was only US $ 11 billion. The impact of FDI to a host country's economy is widely recognised. The foreign-funded firms contributed to nearly 45 per cent of China's export during 1999.

Relocation of global manufacturing basis: Large-scale shift in global manufacturing basis to Asian countries has occurred through the 1990's, with factor costs, especially wages increased in developed countries. The other factor which determined the choice of shifting was the labour laws and work related rules and regulations. China which was associated with rigid labour laws and other economy related rules and regulations came out with a concept of special export zones which are a foreign enclave in the country where no labour laws and other economy related rules are made applicable. In fact, China soon realised that it may not be possible to change labour laws and other economy related rules in the country so soon. However, having realised their importance for attracting FDI and to the growth of their economy, it accepted the idea of creating these foreign enclaves such as Shenzen and attracted foreign capital and technology. That is the reason why approximately 45 per cent of China's exports come from such zones.

Rapid technological developments: Rapid technological developments have led to a steep decline in transportation and telecommunication costs. These in turn have vastly reduced the impact of physical distance for global commerce. Though China had a distinct disadvantage of the lack of knowledge of English, it has come out with Chinese as computer compatible language. It has declared that Chinese will be the world's no.1 computer language soon. The flow of FDI capital has also brought with it the technology from the West including the USA. The cultural ties with Taiwan have helped China to a great extent in achieving access to technology and export.

China has achieved the number one position in world trade in regard to toys and stuffed toys. China captured, in 1999, business to the tune of US $ 52 billion out of global US $ 300 billion in textile and clothing. China achieved more than US $ 20 billion in world trade of US $ 850 billion in electronics and computers in 1999-2000. China's next target is gem and jewellery which is low cost capital but highly labour oriented industry of approximately US $ 40 billion. China is equally exploring organic and inorganic chemicals which had a world trade of US $ 574 billion last year.

Destination wise analysis will show that in the USA's import of top 100 items, China figures among top exporters in respect of 61 items while India appears in only 15 items. Similar is the position in regard to the European Union. In the top 100 items of import by Japan, China appears at 76 items. China has foreign reserves of more than US $ 250 billion but the share of FDI's in it is a question mark.

Should India be afraid of China or should prepare for competing with China in international trade. This writer is of the opinion that where we cannot compete we should co-operate with China and bring some success to our industry by importing semi finished products both for domestic and international trade. India should learn lesson from the next door neighbour and modify its economic policies, including the Exim policy with the sole motive of converting human factor from liability to an asset.

The NGOs are not involved in

Directions: Read the following passage carefully to answer the given question. Some words/phrases are printed in bold to help you locate them while answer the question.

Bangladesh, a country numbering almost 140 million, whose population is 90 percent Muslim, is a prime example of a nation under siege from a deluge of NGOs. Since 1981, foreign NGOs have created an indigenous mercenary army and set up a parallel government of their own in the country. Given handsome salaries, bribes, awards, vehicles, machinery and huge funds, the nouveau riche mercenaries pretending to be writers, lawyers, teachers, artists and human–right activists, among others, have set up factories, printing presses, and publishing houses.

Bangladesh is probably the world leader in non–governmental organizations, NGOs, perhaps because economically it is near the bottom of the heap. The 20,000 or so NGOs there operate mainly in the country's 86,000 villages, providing education, health, small loans and agricultural development far more efficiently than the corrupt and inefficient government. Yet, while outsiders have lavished praise on the NGOs, Bangladeshis themselves are ambivalent. Some fear the organizations are becoming a parallel State, financed by foreigners and accountable to nobody.

Most of the foreign money (around $ 250m a year) goes to a handful of famous NGOs such as the Grameen Bank, the Bangladesh Rural Advancement Committee (BRAC), Proshika and the Association for Social Advancement. These are among the biggest rural–development organizations in the world, and they have an awesome reach.

BRAC alone has 1900 full–time employees, 34,000 part–time teachers, and 2.3m members (96% female) in 66,000 villages. Its schools admit only those who do not attend or have dropped out of government schools, and at least 70% of these must be girls. It hires teachers from each village, of whom 96% are women without teaching qualifications. They run schools in rented thatched huts, set neither exams nor homework, and have flexible school hours that enable children to work in the fields with their parents, reducing the incentive to drop out. Teachers are paid 600 taka ($ 12) a month and reach children that government teachers (paid six times as much) cannot.

The Grameen Bank has pioneered small loans to the poor. Commercial banks say it is too risky to make loans of around $100 to people without assets. But Grameen organizes borrowers into groups which guarantee a loan to any member (exerting peer pressure for repayment). Its repayment rate is over 95%. Other NGOs have followed this route, and now more than poor people (almost all women) have obtained small loans for shops, sewing machines, chicken farming and the like.

Micro–credit is one reason for the fall in poverty in Bangladesh, from 59% of the population in 1991–92 to 53% in 1995–96. A more important reason is the attention to women that NGOs have given. By directing education, jobs and credit at women, the NGOs have created a social revolution in a conservative Muslim society. This is mainly why the fertility rate in Bangladesh has crashed from 6.1 births per woman in 1960 to 3.4 births today. It is expected to decline to 2.5 births by 2010. The mullahs hate NGOs for eroding the traditional male–dominated structure, and occasionally attack their offices.

Resentment also comes from politicians, bureaucrats and leftists, all of whose shortcomings have been exposed by the success of NGOs. Leftwing critics accuse NGOs of exploitative rates of interest: BRAC charges 15%, Grameen up to 22%. Yet the high rate of repayment is the best evidence of affordability. In fact, in labour–intensive work, interest charges are a small proportion of total costs.

Grameen Bank has a policy of only giving its loans to women. This has led to calls that its effects are weakening the institution of the family. It is interested in pursuing a policy that will lead Bangladesh to a situation to that we see in the West where the institution of marriage is on the retreat (marriage break down is at an all time high). When one examines who the patrons of the Grameen Bank are things become much clearer. The World Bank, ADB together with the UN, sets the whole agenda of the Grameen Bank. The World Bank is of course the best example of an NGO, whose abject failures at alleviating poverty are all too well documented.

Politicians complain that NGOs have money and power without accountability, embezzle foreign funds and cook their books. The NGOs reply that their accounts are audited, and sometimes not just in Bangladesh but also, to satisfy donors, by auditors abroad. They say they are accountable both to donors and the villagers they serve. The easy availability of donor funds has encouraged some crooks to set themselves up as NGOs. But corruption among NGOs is a trickle compared to the rivers in government.

Choose the phrase most similar in meaning to the phrase 'parallel State', as used in the passage

Directions: Read the following passage carefully to answer the given question. Some words/phrases are printed in bold to help you locate them while answer the question.

Bangladesh, a country numbering almost 140 million, whose population is 90 percent Muslim, is a prime example of a nation under siege from a deluge of NGOs. Since 1981, foreign NGOs have created an indigenous mercenary army and set up a parallel government of their own in the country. Given handsome salaries, bribes, awards, vehicles, machinery and huge funds, the nouveau riche mercenaries pretending to be writers, lawyers, teachers, artists and human–right activists, among others, have set up factories, printing presses, and publishing houses.

Bangladesh is probably the world leader in non–governmental organizations, NGOs, perhaps because economically it is near the bottom of the heap. The 20,000 or so NGOs there operate mainly in the country's 86,000 villages, providing education, health, small loans and agricultural development far more efficiently than the corrupt and inefficient government. Yet, while outsiders have lavished praise on the NGOs, Bangladeshis themselves are ambivalent. Some fear the organizations are becoming a parallel State, financed by foreigners and accountable to nobody.

Most of the foreign money (around $ 250m a year) goes to a handful of famous NGOs such as the Grameen Bank, the Bangladesh Rural Advancement Committee (BRAC), Proshika and the Association for Social Advancement. These are among the biggest rural–development organizations in the world, and they have an awesome reach.

BRAC alone has 1900 full–time employees, 34,000 part–time teachers, and 2.3m members (96% female) in 66,000 villages. Its schools admit only those who do not attend or have dropped out of government schools, and at least 70% of these must be girls. It hires teachers from each village, of whom 96% are women without teaching qualifications. They run schools in rented thatched huts, set neither exams nor homework, and have flexible school hours that enable children to work in the fields with their parents, reducing the incentive to drop out. Teachers are paid 600 taka ($ 12) a month and reach children that government teachers (paid six times as much) cannot.

The Grameen Bank has pioneered small loans to the poor. Commercial banks say it is too risky to make loans of around $100 to people without assets. But Grameen organizes borrowers into groups which guarantee a loan to any member (exerting peer pressure for repayment). Its repayment rate is over 95%. Other NGOs have followed this route, and now more than poor people (almost all women) have obtained small loans for shops, sewing machines, chicken farming and the like.

Micro–credit is one reason for the fall in poverty in Bangladesh, from 59% of the population in 1991–92 to 53% in 1995–96. A more important reason is the attention to women that NGOs have given. By directing education, jobs and credit at women, the NGOs have created a social revolution in a conservative Muslim society. This is mainly why the fertility rate in Bangladesh has crashed from 6.1 births per woman in 1960 to 3.4 births today. It is expected to decline to 2.5 births by 2010. The mullahs hate NGOs for eroding the traditional male–dominated structure, and occasionally attack their offices.

Resentment also comes from politicians, bureaucrats and leftists, all of whose shortcomings have been exposed by the success of NGOs. Leftwing critics accuse NGOs of exploitative rates of interest: BRAC charges 15%, Grameen up to 22%. Yet the high rate of repayment is the best evidence of affordability. In fact, in labour–intensive work, interest charges are a small proportion of total costs.

Grameen Bank has a policy of only giving its loans to women. This has led to calls that its effects are weakening the institution of the family. It is interested in pursuing a policy that will lead Bangladesh to a situation to that we see in the West where the institution of marriage is on the retreat (marriage break down is at an all time high). When one examines who the patrons of the Grameen Bank are things become much clearer. The World Bank, ADB together with the UN, sets the whole agenda of the Grameen Bank. The World Bank is of course the best example of an NGO, whose abject failures at alleviating poverty are all too well documented.

Politicians complain that NGOs have money and power without accountability, embezzle foreign funds and cook their books. The NGOs reply that their accounts are audited, and sometimes not just in Bangladesh but also, to satisfy donors, by auditors abroad. They say they are accountable both to donors and the villagers they serve. The easy availability of donor funds has encouraged some crooks to set themselves up as NGOs. But corruption among NGOs is a trickle compared to the rivers in government.

The Grameen Bank has been successful because

Directions: Read the following passage carefully to answer the given question. Some words/phrases are printed in bold to help you locate them while answer the question.

Bangladesh, a country numbering almost 140 million, whose population is 90 percent Muslim, is a prime example of a nation under siege from a deluge of NGOs. Since 1981, foreign NGOs have created an indigenous mercenary army and set up a parallel government of their own in the country. Given handsome salaries, bribes, awards, vehicles, machinery and huge funds, the nouveau riche mercenaries pretending to be writers, lawyers, teachers, artists and human–right activists, among others, have set up factories, printing presses, and publishing houses.

Bangladesh is probably the world leader in non–governmental organizations, NGOs, perhaps because economically it is near the bottom of the heap. The 20,000 or so NGOs there operate mainly in the country's 86,000 villages, providing education, health, small loans and agricultural development far more efficiently than the corrupt and inefficient government. Yet, while outsiders have lavished praise on the NGOs, Bangladeshis themselves are ambivalent. Some fear the organizations are becoming a parallel State, financed by foreigners and accountable to nobody.

Most of the foreign money (around $ 250m a year) goes to a handful of famous NGOs such as the Grameen Bank, the Bangladesh Rural Advancement Committee (BRAC), Proshika and the Association for Social Advancement. These are among the biggest rural–development organizations in the world, and they have an awesome reach.

BRAC alone has 1900 full–time employees, 34,000 part–time teachers, and 2.3m members (96% female) in 66,000 villages. Its schools admit only those who do not attend or have dropped out of government schools, and at least 70% of these must be girls. It hires teachers from each village, of whom 96% are women without teaching qualifications. They run schools in rented thatched huts, set neither exams nor homework, and have flexible school hours that enable children to work in the fields with their parents, reducing the incentive to drop out. Teachers are paid 600 taka ($ 12) a month and reach children that government teachers (paid six times as much) cannot.

The Grameen Bank has pioneered small loans to the poor. Commercial banks say it is too risky to make loans of around $100 to people without assets. But Grameen organizes borrowers into groups which guarantee a loan to any member (exerting peer pressure for repayment). Its repayment rate is over 95%. Other NGOs have followed this route, and now more than poor people (almost all women) have obtained small loans for shops, sewing machines, chicken farming and the like.

Micro–credit is one reason for the fall in poverty in Bangladesh, from 59% of the population in 1991–92 to 53% in 1995–96. A more important reason is the attention to women that NGOs have given. By directing education, jobs and credit at women, the NGOs have created a social revolution in a conservative Muslim society. This is mainly why the fertility rate in Bangladesh has crashed from 6.1 births per woman in 1960 to 3.4 births today. It is expected to decline to 2.5 births by 2010. The mullahs hate NGOs for eroding the traditional male–dominated structure, and occasionally attack their offices.

Resentment also comes from politicians, bureaucrats and leftists, all of whose shortcomings have been exposed by the success of NGOs. Leftwing critics accuse NGOs of exploitative rates of interest: BRAC charges 15%, Grameen up to 22%. Yet the high rate of repayment is the best evidence of affordability. In fact, in labour–intensive work, interest charges are a small proportion of total costs.

Grameen Bank has a policy of only giving its loans to women. This has led to calls that its effects are weakening the institution of the family. It is interested in pursuing a policy that will lead Bangladesh to a situation to that we see in the West where the institution of marriage is on the retreat (marriage break down is at an all time high). When one examines who the patrons of the Grameen Bank are things become much clearer. The World Bank, ADB together with the UN, sets the whole agenda of the Grameen Bank. The World Bank is of course the best example of an NGO, whose abject failures at alleviating poverty are all too well documented.

Politicians complain that NGOs have money and power without accountability, embezzle foreign funds and cook their books. The NGOs reply that their accounts are audited, and sometimes not just in Bangladesh but also, to satisfy donors, by auditors abroad. They say they are accountable both to donors and the villagers they serve. The easy availability of donor funds has encouraged some crooks to set themselves up as NGOs. But corruption among NGOs is a trickle compared to the rivers in government.