INDIAN INSTITIITE OF MANAGEMENT LUCKNOW

PGP-ABM (Term IV, 2023 -24)

Inter natio nal Trade in Agricultural Prod ucts
Fina l Exam inati on (2/09 /202 3) Time : 2 hour s
Max. Marks: 40
Instr uctio ns:
1. This is an Open -Boo k Exam. Stude nts
are a1lowed to use textbook, slides used in the class as
not allowed.
well as perso nal notes. However, exchange of materials is
2 • N ~ clari ficat ion will be entert ained durin g the exam inatio n. In case of any doubt, write the
.
swta ble assu mpti ons before attempting the question.
questi ons to 6 is two page s.
3- The page limit for answering 1

)?<-Although international marketing isationariskier compared to domestic marketing, why prices of many
exportable agricultural items in intern l market are often lower than prices in the domestic
might face, if it depen ds on marginal cost
m~~e t? What probl ems a smaller country Oike Nepal) (6)
pricin g strategy for its expor ted items on a regula r basis?

.Jr2. Why spora dic dump ing is not a major conce

rn for any country importing agri-products comp ared
of dumping that most countries are likely
to non-agricultural products? What are the two other types
are the major concerns in imposing anti-
to retali ate if they are subject to such dumping? What (6)
dump ing duty unde r WTO regime?
of agri-products should go for long-term
Q3. It is often suggested that the processor-cum-exporter
of raw material for ensur ed processing and
contracts with farmers to ensur e the quality and quantity
with the leading exporter of menth a oil
export. However, based on the classroom-based interaction such contracts between exporters and
the absence of
and its allied products, list down the reasons for (6)
final product?
ment ha farmers in UP. How they ensure the quality of the
was announced in 2023? How the trade
~ a t is the effective durat ion of India's Trade Policy that and location of starting a business for a
ts
policy of India may guide in the choice of products, marke (4)
new business entity?
a large number of standards, but many of
QB-' BIS and Food and Agriculture Department have set
count ries. What could be its reasons and what
fuese stand ards are not accepted by several developed (4)
are its implications for mutu al trade?
able ~gricult~ral product due to any
Q6. In case the importing party does not accept your peri~h options available to you? (4)
le
specific reason that is beyon d your control, what are the possib
indices for selected agricultural products are given
o4_ Some of the international trade performance
4. Analy ze all th~ given indices by indicating their basic
;fu~ ·a country X in Tables 1 thro~ gh '!'ab~e
s based on the given data. (10)
purpose and draw out the major 1mphcation
ct Categories
Table 1: Revealed Comparative Advantage in Selected Produ

HS Code Year 1 Year 2 Year3

1.45 1.68 0.62
11
1.33 1.85 1.36
12
10.24 10.31 11.61
13 6.41
14 4.95 4.55
0.73 0.80 0.99
15 o.68
16 0.19 0.53
3.05 1.91 0.33
17 0.04
18 0.03 0.03
0.37 0.33 0.34
19 0.37
20 0.35 0.38
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.3.
 Table 2: Trade Intensity with some of the Destinations of Agricultural Products

Importing Year1 Year2 Year3

Country
Belgium 0.543 0.570 0.583
China 1.032 0.794 0.904
Germany 0.384 0-431 0.398
Indonesia 2.676 3.304 1.740
Japan 0.881 0.760 0.824
Malaysia 2.647 2.498 2.582
Netherlands 44.899 44.291 48.406
Philippines 17.602 4.969 4.368
Russia 2.068 2.073 1.690
Saudi Arabia 2.106 2.334 2.977
Singapore 23.620 17.381 17.918
South Africa 97.892 43.013 65.947

Table 3: Hirschman Indices of Product and Market Concentration for Agri Products Exports

Year Index of Product concentration Index of Market concentration

2011-12 0.3717 0.1580
2012-13 0.3618 0.1598
2013-14 0.3569 0.1684
2014-15 0.3397 0.1798
2015-16 0.3259 0.1938
2016-17 0.3256 0.2059
2017-18 0.3271 0.2157
2018-19 0.3173 0.2251
2019-20 0.3021 0.2319
2020-21 0.3071 0.2418
2021-22 0.3023 0.2516

Table 4: Trade Complementarity Index for Agri Products with Some Major Trade Partners

Importing Country Year1 Year2 Year3

Belgium 52-47 56.05 54.29
China 48.2 44-46 49.36
France 49.66 52.59 53.89
Hong Kong 52.16 54.84 52.1
Japan 62.53 62.89 61.15
Mauritius 53.94 60.76 55.61
Pakistan 30.42 35.34 39.76
Portugal 62.91 65.52 63.69
Russia 45.32 47.66 47-41
Senegal 52.26 49.06 50.35
Somalia 20.86 28.02 39.73
South Africa 64.25 59.14 50.89

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