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1. With respect to the imports and exports by a country, consider the following statements about
Dumping.
1. Dumping is the practice of selling a product in a foreign market at an unfairly low price in
order to gain a competitive advantage over other suppliers.
2. Anti-dumping duty is imposed to protect local businesses from unfair competition created
due to dumping.
3. The World Trade Organisation(WTO) plays an important role in regulation of anti-dumping
measures.

Answer: C
Soln:
Dumping:
● Dumping is the practice of selling a product in a foreign market at an unfairly low
price (a price that is lower than the cost in the home market, or which is lower than
the cost of production) in order to gain a competitive advantage over other suppliers.
Hence, statement 1 is correct.
● Dumping is done to gain access to the foreign market and eliminate competition. It creates a
monopoly in the market.
● Dumping enables consumers in the importing country to obtain access to goods at an
affordable price.
● However, it can also destroy the local market of the importing country, which can result in
layoffs and the closure of businesses.
Anti-dumping duty:
● An anti-dumping duty is a protectionist tariff that a domestic government imposes on
foreign imports when it believes that the goods are being “dumped” – through the low
pricing – in the domestic market.
● Anti-dumping duty is imposed to protect local businesses and markets from unfair
competition by foreign imports. Hence, statement 2 is correct.
● The imposition of anti-dumping duty is a legitimate trade remedial measure under the
World Trade Organization (WTO) rules.
Ill effects of such duties:
● While the intention of anti-dumping duties is to save domestic jobs, these tariffs can also
lead to higher prices for domestic consumers.
● In the long-term, anti-dumping duties can reduce the international competition of domestic
companies producing similar goods.
Dumping and WTO:
● WTO plays a critical role in the regulation of anti-dumping measures. Hence, statement 3
is correct.

● The WTO Anti-Dumping Agreement allows the government of the affected country to take
legal action against the dumping country as long as there is evidence of genuine material
injury to industries in the domestic market.
● The government must show that dumping took place, the extent of the dumping in terms of
costs, and the injury or threat to cause injury to the domestic market.
● In other cases, the WTO intervenes to prevent anti-dumping measures.
Institutional arrangement in India:
● Anti-dumping measures in India are administered by the Directorate General of Trade
Remedies (DGTR), an attached office of the Department of Commerce, Ministry of
Commerce & Industry.
● DGTR conducts the investigation and makes recommendations to the Government for
imposition of anti-dumping measures.
● Such duty is finally imposed/levied by a Notification of the Ministry of Finance.
● Of the 46 anti-dumping duties levied in the latest three fiscals, 60 per cent targeted goods originating only in China and 26 per cent targeted goods originating in China and at
least one other country.

2. Consider the following statements about NATO.
1. It was formed during the Second World War to fight against Nazi Germany.
2. Collective Defence is the core idea of this organisation.
3. The United Kingdom and the United States are members of NATO

Answer: C
Soln:
NATO:
● Formed in 1949 with the signing of the Washington Treaty, NATO is a political and
military alliance of 32 countries from North America and Europe.
● Established during the Cold War to counter Soviet aggression, NATO’s primary objective is
to protect the freedom and security of its members through both political and military
means. Hence, statement 1 is incorrect.
● Article 5 of the Washington Treaty states that an attack against one Ally is an attack
against all — is at the core of the Alliance, a promise of collective defence. Hence,
statement 2 is correct.
● A “NATO decision” is the expression of the collective will of all 32 member countries since
all decisions are taken by consensus.
● NATO is funded by Allies both directly and indirectly.
○ Direct contributions are made to NATO budgets and programmes on an agreed cost-
share formula, based on Gross National Income. Indirect funding is where allies
commit capabilities or troops to a military operation.
● NATO's Headquarters are located in Brussels, Belgium.
Members:
● At present, NATO has 32 members.

● In 1949, there were 12 founding members of the Alliance: Belgium, Canada, Denmark,
France, Iceland, Italy, Luxembourg, the Netherlands, Norway, Portugal, the United Kingdom
and the United States. Hence, statement 3 is correct.
● The other member countries are: Greece and Turkey (1952), Germany (1955), Spain
(1982), the Czech Republic, Hungary and Poland (1999), Bulgaria, Estonia, Latvia, Lithuania,
Romania, Slovakia and Slovenia (2004), Albania and Croatia (2009), Montenegro (2017)
North Macedonia (2020), Finland (2023) and Sweden (2024).
NATO Plus:
● NATO Plus is a security arrangement that brings together NATO and five aligned nations
(Australia, New Zealand, Japan, Israel, and South Korea) to enhance global defence
cooperation.

3. With reference to the Election Commission of India, consider the following statements:
1. Election Commission of India has the sole responsibility to conduct local body
elections.
2. To ensure a free and fair election, the Commission can cancel the polls in the event
of rigging, booth capturing and other irregularities.
3. It accords recognition and allots symbols to the political parties.

Answer: B

Soln:
● The superintendence, direction and control of the preparation of the electoral rolls
for, and the conduct of, all elections to Parliament and to the Legislature of every
State and of elections to the offices of President and Vice President held under the
Constitution shall be vested in an Election Commission.
● The Election Commission is not responsible for the conduct of local body elections.
State Election Commissions are responsible for local body election. Hence,
statement 1 is incorrect.
● The Election Commission of India has the powers to cancel the polls in the event of
rigging, booth capturing, violence and other irregularities. Hence, statement 2 is
correct.
● It accords recognition to the political parties as national or state parties, on the basis
of poll performance and allots symbols to the political parties for contesting elections. Hence, statement 3 is correct.

4. Consider the following statements about Deposit Insurance and Credit Guarantee
Corporation (DICGC).
1. DICGC is a wholly owned subsidiary of RBI.
2. DICGC insures all bank deposits including deposits of state and central government.
3. DICGC does not cover deposits in a Non-Banking Financial Company (NBFC).

5. Consider the following statements.
1. Fly ash is a byproduct of coal fired power stations.
2. Fly ash is a non toxic, benign substance.
3. Fly ash is rich in Aluminium oxide.