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

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

Question 1.
Write the meaning of Special Drawing rights.
Answer:
It is also called as Paper Gold. They are a form of international reserves created by the IMF in 1969 to solve the problem of International Liquidity.

Question 2.
Mention any two objectives of ASEAN.
Answer:

  1. Accelerate Economic growth, social progress and cultural development in the region.
  2.  To serve as a centre of information and as ASEAN link with other International Organization.

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

Question 3.
Point out any two ways in which IBRD lends to member countries.
Answer:
IBRD leads to member countries

  1. It advances loans to its member
  2. Loans out of its own fund.
  3. Loans out of borrowed capital.

Question 4.
Define Common Market.
Answer:
A group formed by countries within a geographical area to promote duty free trade and free movement of labour and capital among its members.
Eg: European Common Market (ECM)

Question 5.
What is Free trade area?
Answer:
It is the region encompassing a trade bloc whose member countries have signed a Free Trade Agreement (FTA). They involve Co-operation between atleast two countries to reduce Trade barriers.

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

Question 6.
When and where was SAARC Secretariat established?
Answer:
The SAARC Secretariat was established in Kathmandu (Nepal) on 16th January 1987.

Question 7.
Specify any two affiliates of World Bank Group.
Answer:
Affiliates of World Bank Group

  • IDA – International Development Association
  • IFC – International Finance Corporation.

Question 8.
Mention the various forms of economic integration.
Answer:
Trade blocks create business opportunities in order to avoid unnecessary competition among them. It is for their mutual benefits economic integrations takes the form of Free Trade Area is the region a trade block whose member countries have signed a FTA.

Trade areas with no tariff among members and with a common external tariff. An economic union is composed of a common market with a customs union.

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

Question 9.
What are trade blocks?
Answer:
Trade Blocks:
Trade Blocks cover different kinds of arrangements between or among countries for mutual benefits.

Question 10.
Mention any three lending programmes of IMF.
Answer:
(i) Basic credit facility:
The IMF provides financial assistance to its member nations to overcome their temporary difficulties relating to BOP.

(ii) Extended Fund Facility: IMF: P
rovides additional borrowing facility up to 140% of the members quota over and above the basic credit facility.

(iii) Compensatory Financing Facility:
To provide additional financial assistance to the member countries, primary producing countries.

(iv) Buffer stock facility:
This was to help primary goods (Food grains) producers to establish themselves.

(v) Supplementary Financing Facility:
The IMF makes temporary arrangements, to provide supplementary financial assistance to member countries facing payment problem.

(vi) Structural adjustment facility:
Additional Balance of Payments assistance on concessional terms to the poorer member countries.

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

Question 11.
What is Multilateral Agreement?
Answer:
It is an International agreements involving three or more pacifies
Eg: GATT, GATS is the first multilateral set of rules covering trade in services like Banking, Insurance etc.

MFN:
Most Favoured Nation status to all other countries, without any discrimination. Transparency should be maintained by publishing all relevant laws and regulations over services.

Question 12.
Write the Agenda of BRICS Summit, 2018.
Answer:
South Africa hosted the 10th BRICS summit in July 2018. The agenda for BRICS summit is inclusive Growth, Global Governance, shared prosperity and International peace and security.

Question 13.
State briefly the functions of SAARC.
Answer:

  1. Maintain co-operation in the region.
  2. Preventing common problems associated with the member nations.
  3. Ensuring strong relationships among the member nations.
  4. Removal of poverty through various package of programmes.
  5. Prevention of terrorism in the region.

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

Question 14.
List out the achievements of ASEAN.
Answer:

  1. It facilitates free movements of goods and services with in ASEAN by creating single regional market.
  2. It provides free access to the marketers of one to all other members.
  3. It improves business competitive between business competitiveness between business from different countries.
  4. It paves way for market and investment opportunities for the member nations.
  5. It fosters co-operations to industry and trade.

Question 15.
Explain the objectives of IMF.
Answer:

  1. To promote international monetary co-operation among the member nations.
  2. To facilitate faster and balanced growth of International trade
  3. To ensure exchange rate stability by curbing competitive exchange depreciations.
  4. To eliminate or reduce exchange controls imposed by member nations.
  5. To establish multilateral trade and payment system in respect of current transactions instead of bilateral trade agreements.
  6. To promote the flow of capital from developed to developing nations.
  7. To solve the problem of International liquidity.

Question 16.
Bring out the functions of World Bank.
Answer:
The World Bank performs the major role of providing loans for development works to member countries, especially to under developed countries.
The world bank provides long-term loans for various development projects.
(i) Investment for productive purpose:
It performs the functions of assisting in the reconstruction and development of territories of member nations

(ii) Balanced growth of international trade:
Maintaining equilibrium in BOP of member nations by encouraging international investment.

(iii) Provision of loans and guarantees:
Providing guarantees of loans to execute important projects.

(iv) Promotion of Foreign private investment:
It means that guarantees on loans and other investment made by private investors.

(v) Technical services :
It facilitates different kinds of technical services to the member countries through staff college and experts.

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

Question 17.
Discuss the role of WTO in India’s socio economic development.
Answer:
India is the founding member of WTO. India id benefited from WTO.
By reducing Tariff rates on raw materials, components and capital goods, it was able to import more for meeting her developmental requirements. So India’s imports go on increasing. India gets market access in several countries without any bilateral trade agreements. Advanced technology has been obtained at cheaper cost.

Question 18.
Write a note on (a) SAARC (b) BRICS
Answer:
(a) SAARC:
It was established on 8 December 1985 for promotions of Economic and Social progress with in the South Asia region. The SAARC secretariat was established in Kathmandu (Nepal) on 16 January 1987. It was started to promote welfare of the people, to accelerate economic growth, to contribute and strengthen co-operation among themselves, removal of poverty, ensuring relationship among the member nations.

(b) BRICS:
The association of five major emerging National economics like Brazil, Russia, India, China and South Africa. BRICS from 2009 these nations have met annually for formal summit. South Africa hosted the 10th BRICS summit in July 2018. It included Growth, Trade issues, Global Governance, Shared prosperity, international peace and security. First BRICS summit was held at Moscow and South Africa hosted the tenth conference at Johensberg in July 2018. India had an opportunity to host 4th and 8th summits in 2009 and 2016 respectively.

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

Multiple Choice Questions:

Question 1.
International Monetary Fund was an outcome of:
(a) Pandung Conference
(b) Dunkel Draft
(c) Bretton Woods Conference
(d) Doha Conference
Answer:
(c) Bretton Woods Conference

Question 2.
International Monetary Fund is having its headquarters at:
(a) Washington D.C.
(b) New York
(c) Vienna
(d) Geneva
Answer:
(a) Washington D.C.

Question 3.
IBRD is otherwise called:
(a) IMF
(b) World Bank
(c) ASEAN
(d) International Finance Corporation
Answer:
(b) World Bank

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

Question 4.
The other name for Special Drawing Rights is:
(a) Paper gold
(b) Quotas
(c) Voluntary Export Restrictions
(D) None of these
Answer:
(a) Paper gold

Question 5.
The organization which provides long term loan is:
(a) World Bank
(b) International Monetary Fund
(c) World Trade Organisation
(d) BRICS
Answer:
(a) World Bank

Question 6.
Which of the following countries is not a member of SAARC?
(a) Sri Lanka
(b) Japan
(c) Bangladesh
(d) Afghanistan
Answer:
(b) Japan

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

Question 7.
International Development Association is an affiliate of:
(a) IMF
(b) World Bank
(c) SAARC
(d) ASEAN
Answer:
(b) World Bank

Question 8.
______ relates to patents, copyrights, trade secrets, etc.,
(a) TRIPs
(b) TRIMs
(c) GATS
(d) NAMA
Answer:
(a) TRIPs

Question 9.
The first ministerial meeting of WTO was held at:
(a) Singapore
(b) Geneva
(c) Seattle
(d) Doha
Answer:
(a) Singapore

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

Question 10.
ASEAN meetings are held once in every years.
(a) 2
(b) 3
(c) 4
(d) 5
Answer:
(b) 3

Question 11.
Which of the following ¡s not the member of SAARC?
(a) Pakistan
(b) Sri Lanka
(c) Bhutan
(d) China
Answer:
(d) China

Question 12.
SAARC meets once in ______ years.
(a) 2
(b) 3
(c) 4
(d) 5
Answer:
(a) 2

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

Question 13.
The headquarters of ASEAN is:
(a) Jakarta
(b) New Delhi
(c) Colombo
(d) Tokyo
Answer:
(a) Jakarta

Question 14.
The term BRIC was coined in:
(a) 2001
(b) 2005
(c) 2008
(d) 2010
Answer:
(a) 2001

Question 15.
ASEAN was created in:
(a) 1965
(b) 1967
(c) 1972
(d) 1997
Answer:
(b) 1967

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

Question 16.
The Tenth BRICS Summit was held
(a) Beijing
(b) Moscow
(c) Johannesberg
(d) Brasilia
Answer:
(c) Johannesberg

Question 17.
New Development Bank is associated with:
(a) BRICS
(b) WTO
(c) SAARC
(d) ASEAN
Answer:
(a) BRICS

Question 18.
Which of the following does not come under ‘Six dialogue partners’ of ASEAN?
(a) China
(b) Japan
(c) India
(d) North Korea
Answer:
(d) North Korea

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

Question 19.
SAARC Agricultural Information Centre (SAIC)works as a central information institution for agriculture related resources was founded on:
(a) 1985
(b) 1988
(c) 1992
(d) 1998
Answer:
(b) 198

Question 20.
BENELUX is a form of:
(a) Free trade area
(b) Economic Union
(c) Common market
(d) Customs union
Answer:
(d) Customs union

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

Samacheer Kalvi 12th Economics Notes Chapter 8 International Economic Organisations

→ Paper Gold: A form of international reserves created by IMF.

→ Buffer Stock: Help primary goods for stabilization of primary products.

→ Multi Fibre Agreement: It governs the world trade in Textiles and Garments since 1974.

→ IMF – International Monetary Fund

→ ITO – International Trade Organisation

→ GATT – General Agreement on Tariff and Trade

→ WTO – World Trade Organisation

→ SDR – Special Drawing Rights

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

→ SAF – Structural Adjustment Facility

→ ESAF – Enhanced Structural Adjustment Facility

→ IBRD – International Bank for Reconstruction and Development or World (Bank)

→ IDA – International Development Association

→ IFC – International Finance Corporation

→ MIGA – Multilateral Investment Guarantee Agency

→ ICSID – International Centre for settlement of Investment Dispute

→ TRIP – Trade Related Intellectual Property Rights

→ TRN – Trade Related Investment Measures

→ GATS – General Agreement on Trade in Services

→ MFA – Multi Fibre Agreement

→ AOA – Agreement on Agriculture

→ SAARC – South Asian Association for Regional Co-operation

→ SAIC – SAARC – Agriculture Information Centre

→ SADF – SAARC – South Asian Development Funds

→ ASEAN – Association of South East Asian Nations

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

→ BRICS – Acronym for five major emerging economies (Brazil, Russia, India, China and South Africa)

→ NDB – New Development Bank

→ FTA – Free Trade Agreement

→ ECM – European Common Market.

TN Board 12th Economics Important Questions