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BBA 3rd Year Recent Trends In India Foreign Trade Short Question Answer Notes

BBA 3rd Year Recent Trends In India Foreign Trade Short Question Answer Notes

BBA 3rd Year Recent Trends In India Foreign Trade Short Question  Answer Notes Study Material Semester Wise Notes Solved Papers Book Code-604

BBA 3rd Year Recent Trends In India Foreign Trade Short Question  Answer Notes
BBA 3rd Year Recent Trends In India Foreign Trade Short Question Answer Notes

BBA 1st 2nd 3rd Year Study Material Notes

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(Short Answer Questions)

Q.1. Discuss the historical introduction of construction and consultancy services in India.

Ans. Construction and consultancy services play a crucial role in infrastructural development, transfer of technology and achieving socio-economic development objectives. They together

constitute one of the largest service sectors of the economy and account for a significant proportion of employment and foreign exchange earnings. In most developed and many developing countries the share of construction in the total GDP (Gross Domestic Product) ranges between 5-7 per cent.

Trade in construction and consultancy services is primarily through the movement of natural persons (that is, the temporary movement of unskilled/semi-skilled/skilled labourers and professionals) and commercial presence in the form of FDI (Foreign Direct Investment), joint ventures etc. With developments in internet technology and advanced communications systems, there has been an increase in cross-border trade in some of these services.

The Uruguay Round of multilateral negotiations, which led to the establishment of the General Agreement on Trade in Services (GATS), was the first attempt to remove/reduce some

he first attempt to remove/reduce some of the above barriers and enhance trade in construction and consultancy services. The primary

consultancy services. The primary aim of the GATS 2000 negotiations is to continue the liberalization process by removing the restrictions on market access and national treatment and by promoting transparency in domestic regulations

Although construction and consultancy services is one of the key infrastructural and contributes more than 5 per cent of the GDP, India is a marginal player in the world w e these services and its share in the global trade is less than one per cent. Given India’s considerable infrastructural needs and the abundant supply of low-cost skilled/semi-skilled/ unskilled labourers and professionals, India has the potential of expanding trade (both imports and exports) in these services. It is therefore important to identify the country’s constraints and opportunities to trade in construction and consultancy services not only for the current round of GATS 2000 negotiations but also to increase productivity, efficiency and global competitiveness of these services.

Q.2. Discuss the different sectors of consultancy services.

Ans. Coverage of the Sectors : Construction services encompass a wide range of services including construction work for all types of residential and non-residential buildings; construction work for civil engineering, such as construction of highways, railways, bridges and tunnels, waterways and harbours; installation and assembly work, such as air conditioning and heating, gas fitting insulation; building completion and finishing work and all other activities relating to construction, such as pre-election work at construction sites, foundation work, roofing, concrete work, steel bending and erection, masonry work and renting services related to equipment for construction or demolition of buildings or civil engineering works with operator.

Consultancy services related to construction include various types of architectural and engineering services. The architectural firms provide blueprints and designs for buildings, while engineering firms provide planning, design, construction and management services for building structures, installations, civil engineering works, and industrial processes, etc. Under GATS, architectural and engineering services are listed as a sub-sector of professional services.

BBA 3rd Year Recent Trends In India Foreign Trade Short Question Answer Notes

Q.3. What are the objectives of consultancy export services?

Ans. This study will examine the prospects of liberalising trade in construction and consultancy services and the costs and benefits of such liberalisation under the GATS framework. Other objectives of this study are: (a) to assess the opportunities available to and constraints faced by these sectors in India, (b) to recommend strategies for the Indian government in its negotiations at the WTO, and (C) to suggest various domestic reforms and measures that would be required to strengthen the sectors.

The study consists of following five sections:

1. Section 1: It analyses the place of construction and consultancy services in the domestic and world economy-bringing out the recent trends and developments in these sectors.

2. Section 2: It discusses the domestic constraints and external barriers to India’s trade construction and consultancy services.

3. Section 3: It focuses on the coverage of the sectors under GATS, initial commitments made by India and other major trading countries in these sectors.

4. Section 4: It analyses the possible demand for liberalisation by India’s trading partners in construction, architectural and engineering services and India’s response thereto in the light of further scope for liberalisation during the GATS 2000 negotiations. This section identifies entry barriers in markets of export interest to India and the demands India should make on its trading partners in this regard.

5. Section 5: It discusses the regulatory and other reforms required in India to make these sectors globally competitive and to meet the challenges and opportunities arising from trade liberalization under GATS.

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