IBPS Clerk – IBPS CLERK TEST - 17

Read the following passage carefully and answer the questions given below it. Certain words are given in bold to help you locate them while answering some of the questions. <br><br> India and Pakistan are once again getting ready to talk peace. Already, good gestures have been exchanged. Nothing can be a matter of greater happiness for the people of the two countries than this. People of the two countries hardly carry any ill­will against each other and are keen for peace in the subcontinent. Perhaps, it is this factor that is bringing the two countries to <strong>resumption</strong> of peace talks again and again. <br><br> The current initiative for peace should begin from where it has the best chance to succeed. This, undoubtedly, is in the <strong>realm</strong> of economy and trade. It is only through economic and commercial cooperation that one can ensure greater economic well­being for the people. There is no available estimate about loss of economic prosperity suffered by the two nations on account of hostilities and lack of economic integration. But surely the people of the two countries are suffering huge losses by way of loss of output, trade and consequent loss of growth opportunities. Therefore, trade and economy can be the starting point of peace initiatives this time. <br><br> Official bilateral trade between the two countries has been <strong>steadily</strong> on the decline. It has reached around $200 million, falling from a one­time high of almost $ 1 billion. Imagine the two countries, with a combined population of around 1.2 billion and with a middle­income population of over 350 million (having per capita income of over $ 1,000), are not trading enough with each other. Some unfounded apprehensions have been allowed to misguide the trade and create obstacles to healthy trading relationship. <br><br> On the other hand, there is apparently a flourishing unofficial trade, the exact size of which is not known but can be put at over $ 1 billion. This costs the consumers, especially in Pakistan, by way of higher prices because of the <strong>clandestine</strong> nature of such trade. If trade is regularized, undoubtedly official bilateral trade would immediately jump to $ 2 billion or more. And then the same may have the backing of a high annual growth. But most importantly, this may put a curb on various evils of unofficial trade. <br><br> There is a case for a free market between India and Pakistan. A free market will mean more trade. More trade will simply mean more growth, more employment and more wellbeing. But what is more, free trade is likely to integrate the two economics, binding each other in a wide­ranging areas of investment, financial integration and infrastructure. <br><br> The idea of a free market - where there should be no tariff barriers (or with nominal tariffs of 3.5 per cent for revenue purposes) - needs to be considered seriously in the interest of long­lasting development of the two economics. If this is allowed, there is no need to ask such trivial questions as to which sectors are likely to benefit. Opportunities and potentials, when unshackled, will bring everything to the fore for us to see. Development will take their own routes. <br><br> There are several other compelling reasons for a free market between India and Pakistan. First, it will immediately bring life into the stalled SAARC initiative for free trade. Like it or not, the biggest obstacle to the progress of regional cooperation within South Asia is lack of economic and commercial cooperation between India and Pakistan. Second, a free market between India and Pakistan may encourage China to rethink its economic relationship with South Asia. A stronger economic integration involving India, China, Pakistan, along with other South Asian countries, may be a distinct possibility. This may have its palliative effect on the tense relationship between India and Pakistan. <br><br> With such a thing happening, South­East Asian countries may not like to be seen as lagging behind. And then, with appropriate initiatives undertaken by India and Pakistan, it may be possible to rope in the countries of Central Asia under the canopy of free market. <br><br> All, however, will depend on the visionary qualities of the political leadership of India and Pakistan. Economics and economies are, after all, handmaidens of politics. There is a great opportunity for India and Pakistan to demonstrate quality leadership to the rest of the world and give Asia an admirable facelift. This is the unavoidable destiny for India and Pakistan. The sooner we recognize it, the better it is. Free market is only the catalytic first step needs to be taken.

What leads India and Pakistan on the platform of peace dialogues at regular periods?

Read the following passage carefully and answer the questions given below it. Certain words are given in bold to help you locate them while answering some of the questions. <br><br> India and Pakistan are once again getting ready to talk peace. Already, good gestures have been exchanged. Nothing can be a matter of greater happiness for the people of the two countries than this. People of the two countries hardly carry any ill­will against each other and are keen for peace in the subcontinent. Perhaps, it is this factor that is bringing the two countries to <strong>resumption</strong> of peace talks again and again. <br><br> The current initiative for peace should begin from where it has the best chance to succeed. This, undoubtedly, is in the <strong>realm</strong> of economy and trade. It is only through economic and commercial cooperation that one can ensure greater economic well­being for the people. There is no available estimate about loss of economic prosperity suffered by the two nations on account of hostilities and lack of economic integration. But surely the people of the two countries are suffering huge losses by way of loss of output, trade and consequent loss of growth opportunities. Therefore, trade and economy can be the starting point of peace initiatives this time. <br><br> Official bilateral trade between the two countries has been <strong>steadily</strong> on the decline. It has reached around $200 million, falling from a one­time high of almost $ 1 billion. Imagine the two countries, with a combined population of around 1.2 billion and with a middle­income population of over 350 million (having per capita income of over $ 1,000), are not trading enough with each other. Some unfounded apprehensions have been allowed to misguide the trade and create obstacles to healthy trading relationship. <br><br> On the other hand, there is apparently a flourishing unofficial trade, the exact size of which is not known but can be put at over $ 1 billion. This costs the consumers, especially in Pakistan, by way of higher prices because of the <strong>clandestine</strong> nature of such trade. If trade is regularized, undoubtedly official bilateral trade would immediately jump to $ 2 billion or more. And then the same may have the backing of a high annual growth. But most importantly, this may put a curb on various evils of unofficial trade. <br><br> There is a case for a free market between India and Pakistan. A free market will mean more trade. More trade will simply mean more growth, more employment and more wellbeing. But what is more, free trade is likely to integrate the two economics, binding each other in a wide­ranging areas of investment, financial integration and infrastructure. <br><br> The idea of a free market - where there should be no tariff barriers (or with nominal tariffs of 3.5 per cent for revenue purposes) - needs to be considered seriously in the interest of long­lasting development of the two economics. If this is allowed, there is no need to ask such trivial questions as to which sectors are likely to benefit. Opportunities and potentials, when unshackled, will bring everything to the fore for us to see. Development will take their own routes. <br><br> There are several other compelling reasons for a free market between India and Pakistan. First, it will immediately bring life into the stalled SAARC initiative for free trade. Like it or not, the biggest obstacle to the progress of regional cooperation within South Asia is lack of economic and commercial cooperation between India and Pakistan. Second, a free market between India and Pakistan may encourage China to rethink its economic relationship with South Asia. A stronger economic integration involving India, China, Pakistan, along with other South Asian countries, may be a distinct possibility. This may have its palliative effect on the tense relationship between India and Pakistan. <br><br> With such a thing happening, South­East Asian countries may not like to be seen as lagging behind. And then, with appropriate initiatives undertaken by India and Pakistan, it may be possible to rope in the countries of Central Asia under the canopy of free market. <br><br> All, however, will depend on the visionary qualities of the political leadership of India and Pakistan. Economics and economies are, after all, handmaidens of politics. There is a great opportunity for India and Pakistan to demonstrate quality leadership to the rest of the world and give Asia an admirable facelift. This is the unavoidable destiny for India and Pakistan. The sooner we recognize it, the better it is. Free market is only the catalytic first step needs to be taken.

Why does the author think that developing trade ties can be the starting point for the peace initiative?

Read the following passage carefully and answer the questions given below it. Certain words are given in bold to help you locate them while answering some of the questions. <br><br> India and Pakistan are once again getting ready to talk peace. Already, good gestures have been exchanged. Nothing can be a matter of greater happiness for the people of the two countries than this. People of the two countries hardly carry any ill­will against each other and are keen for peace in the subcontinent. Perhaps, it is this factor that is bringing the two countries to <strong>resumption</strong> of peace talks again and again. <br><br> The current initiative for peace should begin from where it has the best chance to succeed. This, undoubtedly, is in the <strong>realm</strong> of economy and trade. It is only through economic and commercial cooperation that one can ensure greater economic well­being for the people. There is no available estimate about loss of economic prosperity suffered by the two nations on account of hostilities and lack of economic integration. But surely the people of the two countries are suffering huge losses by way of loss of output, trade and consequent loss of growth opportunities. Therefore, trade and economy can be the starting point of peace initiatives this time. <br><br> Official bilateral trade between the two countries has been <strong>steadily</strong> on the decline. It has reached around $200 million, falling from a one­time high of almost $ 1 billion. Imagine the two countries, with a combined population of around 1.2 billion and with a middle­income population of over 350 million (having per capita income of over $ 1,000), are not trading enough with each other. Some unfounded apprehensions have been allowed to misguide the trade and create obstacles to healthy trading relationship. <br><br> On the other hand, there is apparently a flourishing unofficial trade, the exact size of which is not known but can be put at over $ 1 billion. This costs the consumers, especially in Pakistan, by way of higher prices because of the <strong>clandestine</strong> nature of such trade. If trade is regularized, undoubtedly official bilateral trade would immediately jump to $ 2 billion or more. And then the same may have the backing of a high annual growth. But most importantly, this may put a curb on various evils of unofficial trade. <br><br> There is a case for a free market between India and Pakistan. A free market will mean more trade. More trade will simply mean more growth, more employment and more wellbeing. But what is more, free trade is likely to integrate the two economics, binding each other in a wide­ranging areas of investment, financial integration and infrastructure. <br><br> The idea of a free market - where there should be no tariff barriers (or with nominal tariffs of 3.5 per cent for revenue purposes) - needs to be considered seriously in the interest of long­lasting development of the two economics. If this is allowed, there is no need to ask such trivial questions as to which sectors are likely to benefit. Opportunities and potentials, when unshackled, will bring everything to the fore for us to see. Development will take their own routes. <br><br> There are several other compelling reasons for a free market between India and Pakistan. First, it will immediately bring life into the stalled SAARC initiative for free trade. Like it or not, the biggest obstacle to the progress of regional cooperation within South Asia is lack of economic and commercial cooperation between India and Pakistan. Second, a free market between India and Pakistan may encourage China to rethink its economic relationship with South Asia. A stronger economic integration involving India, China, Pakistan, along with other South Asian countries, may be a distinct possibility. This may have its palliative effect on the tense relationship between India and Pakistan. <br><br> With such a thing happening, South­East Asian countries may not like to be seen as lagging behind. And then, with appropriate initiatives undertaken by India and Pakistan, it may be possible to rope in the countries of Central Asia under the canopy of free market. <br><br> All, however, will depend on the visionary qualities of the political leadership of India and Pakistan. Economics and economies are, after all, handmaidens of politics. There is a great opportunity for India and Pakistan to demonstrate quality leadership to the rest of the world and give Asia an admirable facelift. This is the unavoidable destiny for India and Pakistan. The sooner we recognize it, the better it is. Free market is only the catalytic first step needs to be taken.

What sort of apprehensions have marred the trading relationship between India and Pakistan?