Global Services-27 Prof. Tarun Das

8/9/2019 Global Services-27 Prof. Tarun Das

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8/27/2010 Global Services- 4-6- Tarun Das 1

Global Marketing of Services-Model Questions

for End

-Term ExaminationProf. Tarun Das, IILM, New India.Formerly, Economic Adviser, Ministry of Finance


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Notes

1. The end-term question paper will have twoparts- Part-A (objective type) which iscompulsory and Part-B with essay-typequestions.

2. Part-A will have subparts for filling in blanks,and a set of statements, which need to beidentified as TRUE OR FALSE (without anyeconomic reasoning or explanations).

3. You are required to provide answers to FOURquestions out of seven questions in Part-B.


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1.1 Part-A- Fill in the blanks1.1 The cash reserve ratio (CRR) for commercial

banks had been reduced from 25% in 1991to 5% in December 2006.1.2 The statutory liquidity ratio (SLR) for

commercial banks had been reduced from38.5% in 1991 to 25% in December 2006.

1.3 The Prime Lending Rate (PLR) of commercialbanks declined from 21% in 1991 to around11% in December 2006.

1.4 Foreign Institutional Investors (FIIs), NRIs

and Overseas Corporate Bodies (OCBs) areallowed to buy stocks in Indian marketssubject to individual limits of 5% for NRIs,5% for OCBs, 10% for FIIs and overall limitof 49% of total equity in a firm.


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1.2 Part-A Fill in the blanks

1.5 Foreign investment up to 74% of total equityis permitted in private banks. Foreign equity ininsurance/ banks doing only insurance servicesremains at 26%.

1.6 New banks are allowed to open 25% of theirbranches in rural/semi urban areas.1.7 FDI is allowed up to 100% of equity in 22

activities of the Non-Banking FinancialCorporations (NBFCs) subject to minimum

capital requirements.1.8 Number of foreign banks operating in India

increased to 42 in March 1998 but declined to29 in March 2006.


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1.3 Part-A Fill in the blanks

1.9 Number of commercial banks (both domesticand foreign) operating in India increased to 93in March 1998 but declined to 85 in March 2006.

1.10 Number of new private sector banks declined

from 9 in March 1996 to 8 in March 2006.1.11 Gross NPA ratio (i.e. ratio of gross non-performing assets to total assets) declined from24.8 percent in March 1996 to 3.2 percent inMarch 2006.

1.12 Net NPA ratio (i.e. ratio of net non-performing assets to total assets) declined from10.7 percent in March 1996 to 1.0 percent inMarch 2006.


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1.4 Part-A : Fill in the blanks

1.13 Operating profits ratio (i.e. ratio ofoperating profits to total assets) improved from1.6 percent in March 1996 to 2.1 percent nMarch 2006.

1.14 Net profits ratio (i.e. ratio of net profits tototal assets) improved from 0.2 percent inMarch 1996 to 0.9 percent n March 2006.

1.15 Number of commercial banks having capitaladequacy ratio of more than 10 percentincreased from 43 in March 1996 to 79 in March2006.


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Part-A : True Statements

2.1 Foreign banks are allowed to establishbranches and 100% subsidiaries in India.2.2 Government has allowed overseas bankingunits to operate in Special Economic Zones(SEZs); these banks are exempted from

prudential requirements.2.3 Rupee is fully convertible on current account.2.4 Rupee is almost fully convertible on capital

account for non-residents.

2.5 Rupee is not fully convertible on capitalaccount for the residents.2.6 Foreign investment is allowed almost in all

sectors with caps on foreign equity.


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2.7 Foreign companies can now operate likeIndian companies in India and can use theirtrade marks and brand names.

2.8 India is now a member of the MultilateralInvestment Guarantee Agency (MIGA).

2.9 India has signed treaties for avoidance ofdouble taxation with 66 countries.

2.10 Bank deposit rates and interest rates arenow liberalized and determined by the banks.

2.11 India now allows foreign banks to set up 20new branches per annum in India.2.12 Entry of foreign banks in India is notallowed if its total assets exceeds 15 per cent oftotal assets of all domestic banks in India.


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2.13 India does not allow FDI in retail trading(except for singe brand name), atomic energy,lottery business, gambling and betting, housingand real estate (except for development oftownships and technology and software parks).

2.14 India does not allow FDI in agriculture(except floriculture, development of seeds,animal husbandry, pisiculture and cultivation ofvegetables and mushrooms etc.) andplantations (except tea plantations).

2.15 Fourth largest economy in terms of PPPadjusted GDP after USA, China and Japan


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2.16 India is one of ten fastest economies ofthe world, and it is the second fastest largeeconomy after China in the world.

2.17 India has the largest pool of technicalmanpower in the world.

2.18 India has the largest percentage ofworking population in the world.

2.19 Indian firms are now allowed to raiseforeign funds by GDR, ADR, FCCBs & offshorefunds.

2.20 FIIs/ NRIs/ OCBs are allowed to buygovernment securities (G-secs).


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Part-B : Model Questions

1. What do you mean by globalisation? Whathas been the impact of WTO-GATS onglobalisation and global trade of goods andservices?

2. (a) What is the assessment of developingcountries on the impact of WTO-GATS onservices trade?

(b) What has been the assessment of WTO

Secretariat on the impact of WTO-GATS onservices trade?

(c) Which opinion would you agree and why?


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Part-B : Model Questions3. (a) Discuss positive and negative impact ofservices production and trade on overalleconomic growth.

(b) Would you agree with the view thatglobalisation of trade in services has led to

significant increase in growth of developingcountries?

(c) What could be the adverse impact of servicestrade on the developing economies?

4. (a) Indicate different forms of capital flowsfrom one country to another.

(b) What are the special advantages of FDI overother forms of external capital flows?


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5. (a) Discuss broad types of FDI.(b) Which one is the dominant type of FDI flowsto India and what are main reasons for that?

(c) Indicate the major home countries of FDI

inflows to India.(d) Which are the major sectors attracting FDI toIndia?

6. (a) Discuss the general host country and

home country policies attracting foreigninvestment.

(b) Discuss relative merits and demerits of fiscalincentives for attracting FDI.


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7. (a) Indicate the sectors where FDI is notallowed in India.

(b) Discuss policies, strategy and regulatoryregime for foreign investment of India.

(c) What has been their impact on the Indianeconomy?

8. (a) Discuss the strengths and weaknesses ofthe Indian economy for attracting FDI.

(b) Discuss special problems for attracting FDIin agriculture and plantation, minerals includingoil and gas, power generation, water supply andsanitation


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Part-B : Model Questions9. (a) Discuss different modes for outward

investment. (b) Which one is the dominantmode for Indian overseas investment, and whatare the main reasons for that?

(c) Indicate the major destinations for Indian

overseas investment.10. (a) Indicate the major sectors for Indianoverseas investment.

(b) Indicate the names of top Indian companies

in terms of cross-border M&As.(c) Indicate some of the crucial cross-borderM&As made by Indian companies since 2000.


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11. (a) Discuss the general host country policiesencouraging Indian outward investment.

(b) Discuss the important home country policies

encouraging Indian outward investment.12 (a) Discuss policies, strategy and regulatory

regime for Indian overseas investment.

(b) What has been their impact on the Indianoverseas investment?


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13. (a) Discuss the status of negotiations onservices trade under WTO-GATS. (b) Discussthe functions of the Committee on Trade inFinancial Services, and arrangements for

disputes settlements. (c) Discuss the GATSviews on recognition of prudential norms bymember countries.

14. (a) Discuss the scope and definitions of

financial services under WTO-GATS. (b)Discuss the GATS views on domesticregulations on financial services. (c) Discussthe commitments of India for financial servicesunder WTO-GATS.


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Thank you

Have a Good Day

Global Services-27 Prof. Tarun Das

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