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The India-ASEAN Free Trade Agreement (FTA): Evaluating Its Benefits and Challenges

Description: The India-ASEAN Free Trade Agreement (FTA) is a comprehensive economic agreement between India and the Association of Southeast Asian Nations (ASEAN). It was signed in 2009 and came into effect in 2010. The FTA aims to promote trade and investment between India and ASEAN countries, and to create a single market for goods and services.
Number of Questions: 10
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Tags: economics international trade free trade agreements
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What is the main objective of the India-ASEAN Free Trade Agreement (FTA)?

  1. To promote trade and investment between India and ASEAN countries

  2. To create a single market for goods and services

  3. To reduce tariffs and other trade barriers

  4. All of the above


Correct Option: D
Explanation:

The main objective of the India-ASEAN FTA is to promote trade and investment between India and ASEAN countries, to create a single market for goods and services, and to reduce tariffs and other trade barriers.

Which countries are members of ASEAN?

  1. Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam

  2. Bangladesh, Bhutan, India, Nepal, Pakistan, Sri Lanka

  3. China, Japan, South Korea, Taiwan

  4. Australia, New Zealand, Papua New Guinea, Solomon Islands


Correct Option: A
Explanation:

ASEAN member countries are Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.

What is the total population of ASEAN countries?

  1. 650 million

  2. 750 million

  3. 850 million

  4. 950 million


Correct Option: A
Explanation:

The total population of ASEAN countries is approximately 650 million.

What is the total GDP of ASEAN countries?

  1. $2.5 trillion

  2. $3.5 trillion

  3. $4.5 trillion

  4. $5.5 trillion


Correct Option: B
Explanation:

The total GDP of ASEAN countries is approximately $3.5 trillion.

What are the main exports of India to ASEAN countries?

  1. Petroleum products, chemicals, machinery, vehicles

  2. Textiles, garments, leather goods, footwear

  3. Rice, wheat, sugar, tea

  4. All of the above


Correct Option: D
Explanation:

India's main exports to ASEAN countries include petroleum products, chemicals, machinery, vehicles, textiles, garments, leather goods, footwear, rice, wheat, sugar, and tea.

What are the main imports of India from ASEAN countries?

  1. Crude oil, natural gas, coal

  2. Electronic goods, machinery, chemicals

  3. Palm oil, rubber, timber

  4. All of the above


Correct Option: D
Explanation:

India's main imports from ASEAN countries include crude oil, natural gas, coal, electronic goods, machinery, chemicals, palm oil, rubber, and timber.

What are the benefits of the India-ASEAN FTA for India?

  1. Increased trade and investment

  2. Job creation

  3. Economic growth

  4. All of the above


Correct Option: D
Explanation:

The India-ASEAN FTA is expected to benefit India by increasing trade and investment, creating jobs, and promoting economic growth.

What are the challenges of the India-ASEAN FTA for India?

  1. Competition from ASEAN countries

  2. Loss of jobs

  3. Trade deficit

  4. All of the above


Correct Option: D
Explanation:

The India-ASEAN FTA may pose challenges for India, such as competition from ASEAN countries, loss of jobs, and a trade deficit.

What measures can India take to address the challenges of the India-ASEAN FTA?

  1. Invest in infrastructure and skills development

  2. Promote exports

  3. Provide financial assistance to affected industries

  4. All of the above


Correct Option: D
Explanation:

India can address the challenges of the India-ASEAN FTA by investing in infrastructure and skills development, promoting exports, and providing financial assistance to affected industries.

What is the future of the India-ASEAN FTA?

  1. It will be expanded to include more countries

  2. It will be deepened to include more sectors

  3. It will be strengthened to address new challenges

  4. All of the above


Correct Option: D
Explanation:

The India-ASEAN FTA is expected to be expanded to include more countries, deepened to include more sectors, and strengthened to address new challenges.

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