ANSWER 1-

(A)

Remittance is the method of sending money or transferring it all to the native country and is
generally performed by ex-pats. The remittances are an essential source of revenue for the
host countries, typically developed and emerging market countries, as per the world bank.
Payments offer a potential boost for a nation's economic progress: an income source to be
used for saving and leveraging through formal loans and other goods.

The remittances provide much-needed foreign exchange to recipient countries. Remittance

payments expressly relieve the suffering of the people and households they are sent.
Remittances play an essential role in the economies of emerging and small nations.

As an example, one individual in working in India but his native country is Germany, so
whenever he earns money, he sends it to his family. It will consider as remittances from one
country to another.

(B)

National treatment is an international law theory that states that if a State assigns its citizens
some rights and privileges, it should grant equal rights and privileges to foreigners presently
living in the country. It states that if the change in any rule is taking place for any business or
market of that first country, then that same change will also be adopted by every single
company who's working in that first country.

For example, Amazon is an American company working in so many other countries as well,
including India. Following the different rules and regulations from different countries. If
India made any changes in the rights of every e-commerce company working in India, then
the companies from the outside of India, including Amazon, also needs to adapt that change
for their businesses.

(C)

The most favored nation clause is a kind of agreement that states equal rights and fair
treatment should be given to every member country in WTO (World Trade Organization).
Sometimes this happens in between countries that one country treats his other favorite
country with a better deal. So, MFN states that if that treatment is given to one country, then
every other country will also get the same treatment.

There are two significant exceptions, as well:

 If any country is underdeveloped, then positive discrimination can take place.

 If Regional Trade block forms between two countries, then this discrimination can
happen between those two countries.

For example, Country A decides to charge less taxes from country D because of good terms
with that country but charging the same high taxes from other member countries. Here, the
most favored nation clause (MFN) comes into the role, stating that if country A is giving this
treatment to country D, then every other member country will also get the same treatment of
less tax.

(D)
Labor laws refers to the various laws which describe the rules and regulations and different
rights formed by the government so that every working employee gets what he deserves.

It is made under two different categories:

Federal labor laws:

It is mainly distributed by two major laws: the rights to work of employees and the right to a
person suffering from any disabilities.

It is umbrella laws for any implication happening in-state levels.

 Sexual Harassment of women at the workplace

 Employees provident fund and miscellaneous

State labor laws:

It derives of some rules, which are mainly for companies located in those specific states.

It comprises of shops and establishment laws. It shows all the relationships between
employees and employers.

 Employees liability act

 The children act
 The Bonded Labour System

Industry labor laws:

It comprises of manufacturing and IT sectors. And mainly focuses on the working of

employees in these types of industries.

 Industrial disputes at
 Employees state insurance act
 Payments of wages
 Factories act
 Payment of bonuses
 Trade union Act

ANSWER 2-

Fixed or pegged exchange rate:

 Definition: In a fixed exchange rate regime, the reserve bank of a nation usually uses an
open free market. It is responsible for purchasing and selling its money at a fixed price at
all points to preserve its pegged ratio and, therefore, the constant value of its currency
compared to the relation to which it is pegged.
 Stability: A fixed exchange rate in economic performance can reduce the instability.
 Market Determined Rates: To sustain a reasonable exchange rate, the central bank sells
foreign currency from its reserves during a period of net demand from the private sector
for the foreign currency and repurchases the domestic money.
 Uncertainty: By setting their nation's currency to that of a more stable economy, central
banks will gain credibility a fixed-rate of exchange decreases the uncertainty and relative
market fluctuations by reducing the related risk, it reduces the exchange rate risk.

Floating or flexible exchange rate:

 Definition: In the situation of the floating exchange rate system, currency prices are set
by financial-market trends. For most nations around the world, the floating rates are used
widely.
 Stability: A freely floating currency faces adjustment on a minute to minute basis. Some
days the money faces rapid growth while others face a sharp decline. But the currency
remains stable for most of the days.
 Market Determined Rates: Free-floating exchange rates say that the market can decide
the exchange rate of one currency to another. The market will set such prices when and
when new understanding flows in on a real-time basis.
 Uncertainty: There is a lot of uncertainty caused by a freely floating currency rate.
Currency prices change on a real-time basis. In the short term, it is hard for investors to
engage in foreign trade because they are unaware of the accurate prices that their goods
will get.

According to me Fixed exchange rate is better for India reasons behind this is:

 In the case of an ongoing depreciation of the domestic currency, it adds local money to
the economy by purchasing back the foreign capital and keeping market equilibrium at
the expected fixed exchange rate value.
 It imposes discipline on the monetary system.
 It promotes foreign exchange and the flows of investment between countries.
 Interest rates usually remains fixed for any market condition.
 Secure and stable.

ANSWER 3-

Multilateralism refers to promoting trade between many countries through agreements on the
quantity and price of items, such as on the Common Market, and other restrictive tariffs on
outsiders' goods and services. It comes under the umbrella Institution Like the World Trade
Organization (WTO). It gives different rules, regulations, agreements which make export
and imports of any services and goods within countries easy.

Foreign policy which specifies a country's international interests in specific geographical

areas. Regionalism is determined by the political belief system, which prioritizes a given
region over a larger area. It generally results from political displacements, religious diversity,
cultural divisions, geographical regions, and conflicts in the management.

As per me Multilateralism is the better route for the globalization of India:

 Multilateral agreements grant all signatory nations fair and equal treatment to each other.
 The second advantage for any party is that it enhances trade. Its businesses experience
low tariffs, which allows them easier to access.
 As the developing economies grow, their population in the working class is growing. That
introduces new successful clients for all.
 Countries can negotiate trade agreements with numerous countries at a time. 
 Several nations work in close partnership will achieve better outcomes in the
environmental and economic areas than any other country operating individually.
 Being multilingual allows for the development of knowledge acquisition.
 It provides the opportunity to diversify.

ANSWER 4-

Before making any manufacturing investment decisions in any other country, foreign direct
investors look into multiple factors. The government introduced a New Economic Policy in
India after 1990, which encouraged LPG (Liberalization, Privatization, and Globalization)
policies. This has contributed to the development of more direct foreign investment into the
nation.

Significant factors which will influence the foreign direct investment for my
manufacturing company are:
 Size of Market: The population size and the scope for growth in the economy will indeed
be important in attracting investment. The size of the market is a demand estimate for a
business to an individual. FDI explains the size of the company showing the size of the
market used in business planning, product marketing, and development areas such as
sales planning.
The scale of the market is much more necessary for raising business capital.
Identifying the size of the market helps distinguish between two major types: The
addressable market, which is the sales volume opportunity for your good or service, and
the market open, which is the proportion of the addressable market for where competition
can be done accurately.

 Labour Law: Many sectors, for example, pharmaceutical and telecommunications, need
higher-skilled labour. Therefore, multinational companies will invest in those nations
with a combination of low wages and a high level of productivity and skills. The
relationship between workers, employing entities, trade unions, and government is
induced by labour law (also known as labour law or employment law).

 Taxation: Big corporations like Apple, Google, and Microsoft have tried to invest in
countries with lower corporate tax rates. Ireland, for example, has attracted massive
investments from both Google and Microsoft. It was controversial because Google,
despite having activities in all European countries, has tried to divert all profits through
Ireland.

 Regional Trade block: RTA's can strongly impact FDI through investment provisions as
well as indirectly through financial liberalization. The available data suggest that it is the
significant change in per capita GDP, GDP growth, and market size – factors affected by
trade liberalization – that most affect FDI 's flow into a region. This refers both to the
agricultural and non-agricultural industries.

ANSWER 5-

(RCEP) Regional Comprehensive Economic Partnership refers to an (FTA) free trade

agreement that will establish the economic leading trading bloc and represent an essential
achievement for China. It fights the US for power and economic superiority in the region of
Asia-Pacific. China is the leading RCEP partner that will give it a supreme hand in shaping
the Asia-Pacific trade law.
 The RCEP intends to develop an integrated marketplace with 16 countries, making it
more straightforward for each of these countries' goods and services to be accessible.
 The agreements concentrate on: trade in goods and services, international cooperation,
investment, intellectual property, small and medium-sized enterprises, e-commerce, and
dispute settlement.

Five countries who are currently in the agreement are:

South Korea China New Zealand Australia Japan

with 16 total countries.

There were some reasons why India signed off from the agreement:

firstly, India had decided to take part in this deal, but On Nov 14, 2019, it is excellent to get
open up with all 16 countries, and this will also be beneficial for all the involved countries
they signed off from the deal.

The good reason was that India's industries could not compete with industries of China and
other advanced nations that could have impacted Indian industries very profoundly. Not only
industries but Indian farmers were also showing concern regarding this that they might even
not able to compete with other advanced countries.

The Indian economy is already six years back from China and other advanced countries. US-
China trade war has already impacted the economic growth of India.