Preparing for the JAIIB IE & IFS examination requires a clear understanding of important topics like Foreign Trade Policy, Foreign Direct Investment, Foreign Institutional Investment, and Economic Development. These concepts are frequently tested in the exam through objective questions and statement-based MCQs. Attempting a Foreign Trade Policy Quiz helps candidates assess their preparation level, identify weak areas, and improve their conceptual understanding. Along with practice questions, a downloadable PDF can serve as a quick revision guide for last-minute preparation.
What is Foreign Trade Policy in JAIIB IE & IFS?
Foreign Trade Policy (FTP) is an economic policy that guides and regulates a country’s import and export activities. It aims to promote international trade, improve export performance, increase employment opportunities, and support economic growth. For JAIIB aspirants, Foreign Trade Policy is an important topic because it covers several concepts related to international trade and economic development.
| Particulars | Details |
|---|---|
| Meaning | Policy related to imports and exports |
| Objective | Promote international trade |
| Benefit | Increases foreign exchange earnings |
| Impact | Supports employment and production |
| Importance | Enhances economic growth and prosperity |
Download Practice Quiz on Foreign Trade Policy
Prepare effectively for the JAIIB IE & IFS exam with a dedicated practice quiz on Foreign Trade Policy. The quiz PDF covers important topics such as Foreign Trade Policy 2015-20, Make in India initiative, export promotion measures, MEIS and SEIS schemes, Ease of Doing Business reforms, Export Promotion Capital Goods (EPCG) Scheme, and the role of foreign trade in India’s economic development.
Attempt Quiz on JAIIB IE & IFS Foreign Trade Policy
Test your understanding of Foreign Trade Policy and related concepts through this quiz, designed to help candidates strengthen their knowledge of export promotion strategies, international trade policies, foreign trade schemes, trade facilitation measures, and the contribution of foreign trade to economic growth and employment generation.
1. What does ‘Foreign Trade Policy’ (FTP) primarily govern?
2. The Foreign Trade Policy 2015-20 was launched on which date?
3. The FTP 2015-20 was aligned with which major government initiative?
4. What was India’s total goods and services export value in 2013-14?
5. What was the target export figure for 2019-20 under FTP 2015-20?
6. FTP 2015-20 aimed to increase India’s share in global exports from 2% to what percentage?
7. What does MEIS stand for under FTP 2015-20?
8. What does SEIS stand for in the context of FTP 2015-20?
9. How many old schemes were merged to form SEIS under FTP 2015-20?
10. Under FTP 2015-20, scrips issued under MEIS and SEIS are:
11. Under the Export Promotion Capital Goods (EPCG) scheme, export obligation is reduced by what percentage if capital goods are purchased from domestic producers?
12. What is the primary objective of the ‘Ease of Doing Business’ measure under FTP 2015-20?
13. Under FTP 2015-20, how many MSME clusters were created by the government?
14. The ‘Niryat Bandhu Scheme’ under FTP 2015-20 was linked with which other initiative?
15. Under FTP 2015-20, what is the value limit for e-commerce export of products through courier or foreign post offices to receive MEIS benefits?
16. The FTP 2015-20 was initially extended up to which date due to the COVID-19 pandemic?
17. A new Foreign Trade Policy was announced in which year after FTP 2015-20?
18. What is the concept of ‘Value Addition’ in the context of economic output?
19. India before 1991 was characterized as what kind of economy?
20. What does FDI stand for?
Quiz Summary
Sign Up
Or, register with email
Email Id
Mobile Number
Password
Login
Email Id
Password
Forgot Password
Please enter the Email ID we will send you a Email with the link to reset the password.
Email Id
Or, login with
Why is Foreign Trade important for Economic Development?
Foreign trade helps countries access larger markets and sell goods beyond domestic boundaries. It creates opportunities for businesses to expand their operations and generate higher revenues. Increased exports lead to higher production, which further creates jobs and improves income levels.
- Increases foreign exchange earnings
- Expands market opportunities
- Creates employment opportunities
- Improves consumer choices
- Encourages industrial growth
- Supports economic development
What was India’s trade scenario before and after 1991?
Before 1991, India followed a protected and relatively closed economic system. Foreign investments were restricted, and high tariffs were imposed on imports. After the economic reforms of 1991, India adopted liberalization and globalization measures, making the economy more open and competitive.
| Before 1991 | After 1991 |
| Closed economy | Open economy |
| High tariffs | Reduced restrictions |
| Limited foreign investment | Increased foreign investment |
| Less competition | Global competition |
| Restricted trade | Expanded international trade |
What are the objectives of Foreign Trade Policy 2015-20?
The Foreign Trade Policy 2015-20 was launched to align with the Make in India initiative. The policy focused on increasing exports, improving ease of doing business, generating employment, and making India a major manufacturing and exporting nation.
- Major objectives of FTP 2015-20
- Increase exports of goods and services
- Promote Make in India initiative
- Improve ease of doing business
- Create employment opportunities
- Enhance India’s share in global exports
- Boost domestic manufacturing
- Important targets under FTP 2015-20
| Target Area | Goal |
| Exports | USD 465 Billion to USD 900 Billion |
| Global Export Share | 2% to 3.5% |
| Employment | Higher job creation |
| Manufacturing | Stronger domestic production |
Also: Check out the detailed JAIIB IE and IFS Syllabus
What are MEIS and SEIS schemes?
The government introduced MEIS and SEIS under Foreign Trade Policy 2015-20 to encourage exports of goods and services. These schemes provided incentives to exporters and helped improve India’s international trade performance.
| Scheme | Full Form | Purpose |
| MEIS | Merchandise Exports from India Scheme | Promote export of goods |
| SEIS | Services Exports from India Scheme | Promote export of services |
What are the major features of Foreign Trade Policy 2015-20?
The policy introduced several reforms to simplify trade procedures and support exporters. It encouraged digital processing, reduced paperwork, and promoted domestic manufacturing through various incentives.
- Five earlier export schemes were merged.
- Paperless application process introduced.
- One-time document submission facility provided.
- Dedicated email communication channels created.
- Export-oriented units received additional support.
- MSME export clusters were promoted.
How does Foreign Direct Investment support economic growth?
Foreign Direct Investment (FDI) occurs when foreign investors invest directly in businesses located in another country. FDI brings capital, technology, management expertise, and employment opportunities, which contribute significantly to economic growth.
- Increases capital availability
- Creates employment opportunities
- Enhances production capacity
- Improves technology transfer
- Supports industrial development
- Raises living standards
What are the different routes of FDI in India?
Foreign Direct Investment can enter India through two routes. The route depends on the sector and regulatory requirements specified by the government.
| Route | Description |
| Automatic Route | No prior government approval required |
| Government Route | Prior government approval required |
What are Greenfield, Brownfield, and Joint Venture FDI?
FDI can take different forms depending on how the foreign investor enters the market. Understanding these types is important for JAIIB examination preparation.
| Type | Meaning |
| Greenfield FDI | New business setup in another country |
| Brownfield FDI | Acquisition of existing business |
| Joint Venture | Collaboration between foreign and domestic firms |
Also Check: JAIIB IE and IFS Mind Map PDF
What is Foreign Institutional Investment (F2)?
Foreign Institutional Investment refers to investments made by foreign investors through financial securities such as shares and bonds. Unlike FDI, F2 generally does not provide ownership control and is often considered short-term capital.
- Characteristics of F2
- Invests through stock markets
- Short-term in nature
- Highly volatile
- Known as hot money
- Can enter and exit quickly
- FDI vs FII
| Basis | FDI | FII |
| Nature | Long-term | Short-term |
| Ownership | Direct control | No significant control |
| Stability | More stable | More volatile |
| Purpose | Business expansion | Financial returns |
Also Check: JAIIB IE and IFS Study Material
What is the difference between Economic Growth and Economic Development?
Economic Growth and Economic Development are related but different concepts. Economic Growth focuses on the increase in output and income, while Economic Development focuses on improving the quality of life and overall welfare of people.
| Economic Growth | Economic Development |
| Quantitative concept | Qualitative concept |
| Increase in income and output | Improvement in living standards |
| Narrow concept | Broad concept |
| Focus on production | Focus on overall welfare |
FAQs
Foreign Trade Policy is a government policy that regulates and promotes a country’s imports and exports.
The Foreign Trade Policy 2015-20 was launched on 1 April 2015.
Its main objective was to increase exports, generate employment, and support economic growth.
MEIS stands for Merchandise Exports from India Scheme, which promotes the export of goods from India.
SEIS stands for Services Exports from India Scheme, which encourages the export of services from India.
- Attempt JAIIB IE & IFS Foreign Trade Policy Quiz, and Download PDF
- Attempt JAIIB IE & IFS Economic Reforms Quiz, and Download PDF
- Attempt JAIIB IE and IFS Globalization & Its Impact on India Quiz & Free PDF
- JAIIB IE & IFS Infrastructure Development Quiz & Free PDF
- Attempt JAIIB IE & IFS Sectors of Indian Economy Practice Quiz
- Attempt JAIIB IE and IFS MSME and Priority Sector Quiz & Download PDF
Hi, I’m Aditi. I work as a Content Writer at Oliveboard, where I have been simplifying exam-related content for the past 4 years. I create clear and easy-to-understand guides for JAIIB, CAIIB, and UGC exams. My work includes breaking down notifications, admit cards, and exam updates, as well as preparing study plans and subject-wise strategies.
My goal is to support working professionals in managing their exam preparation alongside a full-time job and to help them achieve career growth.