Test: Regional Economic Cooperation - Bank Exams MCQ

The growth of SAARC is vital for successful inter-regional economic linkages as it aims to achieve rapid economic growth while focusing on external trade and foreign direct investment. This growth is essential for enhancing the economic stability and competitiveness of SAARC member countries in the global market.

The guideline of "Equality and Mutual Benefit" stresses that cooperation should be founded on equal terms, taking into account the economic and social disparities among participating countries. This principle is essential to ensure that all countries involved benefit fairly from the partnership, fostering trust and commitment.

The principle of "Consultation and Consensus" is vital for ensuring that all participating countries engage in open dialogue and deliberation regarding economic issues. This collaborative approach fosters mutual respect and understanding, which are critical for successful regional cooperation.

Information Technology plays a crucial role in strengthening economic relationships by connecting remote regions to the global economy. It facilitates communication, enhances productivity, and enables efficient management of cross-border trade, thus promoting collaboration among nations.

The establishment of regional cooperation was a significant development in the global trade system during the 1990s. This shift was influenced by the conclusion of the Cold War, which reduced political tensions and facilitated the formation of various regional trading agreements, fostering economic collaboration.

High coordination costs can be a significant obstacle to regional economic cooperation, as some countries may be unwilling or unable to bear these costs. Effective collaboration often requires substantial investment in infrastructure and governance, which can deter participation from less economically stable nations.

India and Japan are establishing working groups to enhance cooperation on cross-border infrastructure projects. This collaboration aims to improve connectivity and foster economic growth in the region, particularly in the energy sector, demonstrating the importance of international partnerships in regional development.

India's active engagement with ASEAN demonstrates its commitment to regional economic cooperation. By participating in discussions and negotiations with ASEAN-10, India seeks to strengthen its partnerships, enhance trade relations, and contribute to mutual economic growth, highlighting its importance in the region.

Effective regional economic cooperation can lead to the creation of new trade and investment opportunities, which fosters economic growth and development. By collaborating, countries can leverage their strengths, establish new supply chains, and enhance their competitiveness in the global market, benefiting all parties involved.

Regional economic cooperation allows smaller economies to access larger markets and resources, which is crucial for overcoming the limitations imposed by their small domestic markets. By collaborating with neighboring countries, these economies can achieve economies of scale and specialization, ultimately leading to enhanced economic growth and competitiveness.