Globalisation and the Indian Economy Test - 7

In India the policy of liberalisation was initiated in the year 1991. This opened up the entry of MNCs into India in a big way.

Indian government allowed partial convertibility of rupee. Partial convertibility means to buy or sell foreign currency like dollar or pound sterling, for foreign transactions at a price determined by the market. It is called partial convertibility because it does not cover capital transactions.

The International Monetary Fund (IMF) is an international organization headquartered in Washington D.C., consisting of "189 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world." Formed in 1945 at the Bretton Woods.

In accordance with the above, to shorten the duration and lessen the degree of dis­equilibrium in the international balance of payments of members.Other three are the objectives of World Bank.

The International Monetary Fund (IMF) is an international organization headquartered in Washington D.C. consisting of "189 countries.

World Bank is a multinational institution established at the end of the world war ll i.e. 1944. Its main objective is to provide long term loans for reconstruction and development of member countries.

Foreign trade or International trade is the trade between two or more countries. International trade is an integral part of Globalisation.

Exports are the goods and services produced in one country and purchased by citizens of other countries .In other words we can say that exports are the products sold abroad.

Trade policy is formulated mainly by ministry of commerce and industry, along with ministry of finance, ministry of agriculture and the reserve bank of India.

Foreign Trade Policy in which objectives of India's Trade Policy are stipulated is issued every 5 years.