Question Bank (As per Blooms Taxonomy)
UNIT 1: BUSINESS ENVIRONMENT
1.1 Meaning, Characteristics, Scope, and Significance of Business Environment
Remembering
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Define business environment.
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List the characteristics of the business environment.
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State the scope of business environment.
Understanding
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Explain why understanding the business environment is important for managers.
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Differentiate between internal and external environment of business.
Applying
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Illustrate how changes in the business environment affect managerial decisions.
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Give examples of how organizations adapt to changes in business environment.
Analyzing
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Examine the interrelationship between economic, social, and technological factors in shaping business environment.
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Analyze how a turbulent business environment affects business strategies.
Evaluating
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Critically assess the significance of studying the business environment for long-term business planning.
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Evaluate the extent to which business success depends on environmental scanning.
1.2 Components of Business Environment: Micro and Macro Environment
Remembering
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Identify the components of the micro environment.
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State the factors of macro environment.
Understanding
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Describe how the micro environment influences business decisions.
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Explain with examples the role of macro-environmental factors (PESTLE).
Applying
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Apply the concept of micro and macro environment to a company of your choice.
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Show how inflation or technological advancement impacts business operations.
Analyzing
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Analyze how suppliers, competitors, and customers influence a firm’s strategies.
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Compare and contrast micro and macro environmental forces with suitable examples.
Evaluating
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Evaluate which macro factors have the greatest impact on business growth in India.
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Critically judge the importance of environmental monitoring for sustainable development.
1.3 Analysis of Business Environment: SWOT Analysis, Porter’s Model
Remembering
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What is SWOT analysis?
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State the five forces in Porter’s Model.
Understanding
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Explain the purpose of conducting a SWOT analysis.
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Describe how Porter’s Five Forces Model helps in industry analysis.
Applying
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Apply SWOT analysis to a company (e.g., Reliance Jio, TATA Motors).
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Use Porter’s Five Forces to analyze the competition in the smartphone industry.
Analyzing
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Analyze how internal strengths and weaknesses interact with external opportunities and threats.
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Examine how Porter’s Model assists managers in formulating competitive strategies.
Evaluating
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Evaluate the effectiveness of SWOT analysis compared to Porter’s Model.
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Critically evaluate the limitations of using Porter’s Five Forces in dynamic markets.
UNIT 2: INTERNATIONAL BUSINESS
2.1 Importance, Nature, and Scope of International Business
Remembering
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Define international business.
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State any three features of international business.
Understanding
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Explain the importance of international business in today’s global economy.
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Discuss the scope of international business activities.
Applying
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Illustrate with examples how globalization influences international business.
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Apply the concept of international business to emerging markets.
Analyzing
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Analyze how international business contributes to national economic development.
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Compare domestic business and international business in terms of risk and scale.
Evaluating
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Evaluate the role of international business in promoting global integration.
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Critically assess whether globalization benefits developing countries.
2.2 Modes of Entry into International Business; Internationalization Process
Remembering
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List the modes of entry into international business.
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Define licensing and franchising.
Understanding
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Explain the stages of the internationalization process.
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Describe the advantages and disadvantages of joint ventures.
Applying
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Apply the concept of export and licensing to a real company example.
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Show how a small firm can expand internationally using franchising.
Analyzing
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Analyze how the choice of entry mode depends on market conditions.
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Compare direct and indirect exporting strategies.
Evaluating
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Evaluate which mode of entry is most suitable for Indian startups.
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Critically assess the challenges firms face during internationalization.
2.3 Multinational Corporations (MNCs) and Issues in Foreign Investment
Remembering
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Define Multinational Corporation.
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List the characteristics of MNCs.
Understanding
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Explain the role of MNCs in international trade.
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Describe the challenges of foreign investment in developing countries.
Applying
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Illustrate the role of MNCs in India’s economic growth.
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Apply the concept of FDI using a case study of an Indian sector.
Analyzing
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Analyze how MNCs influence domestic industries.
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Examine issues such as repatriation of profits, taxation, and ethics in foreign investment.
Evaluating
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Evaluate the advantages and disadvantages of MNCs for host countries.
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Critically judge whether MNCs promote sustainable development.
2.4 Technology Transfer, Pricing & Regulations, and Strategic Alliances
Remembering
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Define technology transfer.
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State the meaning of strategic alliance.
Understanding
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Explain different methods of technology transfer.
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Describe how pricing policies differ in international markets.
Applying
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Apply examples of successful international alliances (e.g., Star Alliance, Renault-Nissan).
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Show how regulations affect technology transfer in developing countries.
Analyzing
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Analyze the role of government in regulating foreign technology and pricing.
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Examine how strategic alliances enhance competitive advantage.
Evaluating
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Evaluate the ethical and regulatory issues in international technology transfer.
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Critically assess the long-term sustainability of global strategic alliances.
UNIT 3: INTERNATIONAL BUSINESS ENVIRONMENT
3.1 Economic and Political Environments
Remembering
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Define political environment.
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State key elements of the economic environment.
Understanding
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Explain how political stability affects international business.
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Discuss the impact of fiscal and monetary policies on trade.
Applying
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Illustrate with examples how political risk impacts investment decisions.
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Apply economic indicators to analyze an emerging market.
Analyzing
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Analyze the influence of political systems on business operations.
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Compare liberal and restrictive trade policies of different nations.
Evaluating
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Evaluate the effectiveness of government interventions in promoting international trade.
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Critically assess the risks of doing business in politically unstable countries.
3.2 Cultural and Legal Environments
Remembering
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What is culture in international business?
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List components of the legal environment.
Understanding
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Explain how cultural differences affect communication in business.
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Describe the role of legal systems in regulating international trade.
Applying
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Apply Hofstede’s cultural dimensions to a cross-border business example.
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Show how understanding legal norms helps companies avoid disputes.
Analyzing
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Analyze how cultural values influence negotiation styles.
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Examine conflicts arising from differing legal systems in trade.
Evaluating
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Evaluate the importance of cultural adaptability for international managers.
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Critically assess how legal harmonization can facilitate global trade.
3.3 Technological and Competitive Environments
Remembering
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Define technological environment.
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List types of international competition.
Understanding
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Explain the role of technology in shaping international business.
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Discuss the effects of innovation on global competitiveness.
Applying
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Apply examples of how technology improves supply chain efficiency.
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Show how digitalization helps firms enter foreign markets.
Analyzing
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Analyze how technological changes disrupt global business models.
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Compare competitive strategies of leading global firms.
Evaluating
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Evaluate the impact of AI and automation on international business.
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Critically assess whether technological change widens the gap between developed and developing countries.
3.4 Framework for Analyzing International Business Environment
Remembering
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Identify the main components of international business environment analysis.
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Define environmental scanning.
Understanding
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Explain the steps involved in analyzing international business environment.
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Describe frameworks like PESTLE and CAGE.
Applying
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Apply PESTLE analysis to assess an international market (e.g., ASEAN region).
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Use environmental scanning to identify global business opportunities.
Analyzing
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Analyze interconnections among political, economic, and cultural environments.
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Compare different frameworks for global environment analysis.
Evaluating
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Evaluate the usefulness of analytical frameworks in strategic decision-making.
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Critically assess the limitations of environmental analysis models.
UNIT 4: INTERNATIONAL INSTITUTIONS AND AGREEMENTS
4.1 WORLD TRADE ORGANIZATION (WTO) – Role & Functions
Remembering
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What does WTO stand for?
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List any four functions of the WTO.
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State the objectives of the WTO.
Understanding
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Explain the role of WTO in promoting global trade.
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Discuss the principles on which the WTO operates (MFN & National Treatment).
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Describe how WTO differs from GATT.
Applying
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Illustrate with an example how WTO helps settle trade disputes between nations.
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Apply the concept of WTO agreements to India’s agricultural sector.
Analyzing
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Analyze the impact of WTO policies on developing countries.
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Compare the advantages and disadvantages of WTO membership for India.
Evaluating
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Evaluate the effectiveness of WTO in ensuring fair trade practices.
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Critically assess whether the WTO truly benefits developing nations.
4.2 INTERNATIONAL MONETARY FUND (IMF) – Role & Functions
Remembering
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Define IMF.
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Mention the main objectives of the IMF.
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State any two functions of the IMF.
Understanding
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Explain the role of IMF in maintaining global financial stability.
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Discuss the concept of Special Drawing Rights (SDRs).
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Describe how IMF provides assistance to member countries.
Applying
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Apply IMF’s role in stabilizing a country facing a balance of payments crisis (e.g., Sri Lanka, Greece).
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Illustrate how IMF conditionality affects borrower nations.
Analyzing
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Analyze the criticisms leveled against IMF’s lending policies.
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Compare the functioning of IMF and World Bank.
Evaluating
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Evaluate the relevance of IMF in the present global economic system.
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Critically assess whether IMF policies promote or hinder sustainable development.
4.3 WORLD BANK – Role & Functions
Remembering
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What is the World Bank?
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Name the institutions that form the World Bank Group.
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State the primary objective of the World Bank.
Understanding
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Explain the role of the World Bank in promoting economic development.
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Describe how the World Bank supports infrastructure and poverty reduction programs.
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Discuss the difference between IBRD and IDA.
Applying
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Apply the World Bank’s role in financing development projects in India.
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Show how World Bank policies influence developing economies.
Analyzing
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Analyze the impact of World Bank loans on national economic sovereignty.
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Compare the roles of World Bank and IMF in developing countries.
Evaluating
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Evaluate the effectiveness of World Bank projects in reducing global poverty.
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Critically assess the environmental and social implications of World Bank-funded projects.
4.4 FOREIGN DIRECT INVESTMENT (FDI) – Meaning & Modes
Remembering
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Define Foreign Direct Investment (FDI).
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List any three modes of FDI.
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State the difference between FDI and FPI.
Understanding
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Explain the importance of FDI for developing countries.
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Describe different forms/modes of FDI (Joint Venture, Wholly Owned Subsidiary, Mergers & Acquisitions, etc.).
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Discuss the role of government policies in attracting FDI.
Applying
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Apply the concept of FDI to India’s automobile or telecom sector.
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Illustrate how FDI contributes to employment generation and technology transfer.
Analyzing
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Analyze the factors influencing FDI inflows into emerging economies.
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Compare FDI policies of India and China.
Evaluating
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Evaluate the impact of FDI on host and home countries.
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Critically assess whether FDI leads to economic dependence or development.
✅ Optional Add-On Section for Unit 4 (Extended Coverage)
International Agreements and Economic Cooperation
(for higher-level understanding / university pattern)
Remembering
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Name any two major international trade agreements under WTO.
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State what is meant by a bilateral trade agreement.
Understanding
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Explain the significance of regional trade agreements (RTAs) such as ASEAN or EU.
Applying
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Apply the concept of trade liberalization to India’s Free Trade Agreements (FTAs).
Analyzing
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Analyze how multilateral agreements impact national trade policies.
Evaluating
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Evaluate whether regional agreements strengthen or weaken the global multilateral system.