RBI Grade B Officer (General / DEPR / DSIM) 2022 · Question 183 of 276

Study the following information and answer the question given below it. A July 2020 paper published in the Journal of Economic Structures by Mohammad Masudur Rahman and co-authors makes some fascinating points. Using econometric modelling, the authors conducted a comparative analysis of the likely impact of tariff reduction and trade facilitation in a scenario of Indo-Pacific regional integration on various macroeconomic and trade variables. The modelling showed if Quad countries were to sign a trade agreement where bilateral tariffs are scrapped, India’s real GDP could increase by 0. 2% or $5. 7 billion. Which of the following would strengthen the argument above? I. While such an agreement would be advantageous for the other two partners as well, benefits would differ depending on the size of the economy, the levels of tariff and non-tariff barriers. II. If other nations or groupings like Asean were to join such a trade agreement and engage in reducing non-tariff barriers, the benefits for member countries could be exponentially higher. III. Among Quad nations, India needs investment, attractive financing for infrastructure, technology, and access to key raw materials, particularly rare earth elements.

Logical Reasoning

1. AA. Only I
2. BB. Only I & II
3. CC. Only IICorrect
4. DD. Only II & III
5. EE. Only III