Export–import (EXIM) policy, TRIPS and global marketing management MCQs With Answer

Introduction: This quiz collection on Export–Import (EXIM) policy, TRIPS and Global Marketing Management is designed specifically for M.Pharm students studying Industrial Pharmacognostical Technology (MPG 104T). It focuses on practical and regulatory aspects of international pharmaceutical trade, intellectual property rules under TRIPS, and strategies for entering and managing global markets. Questions emphasize export documentation, risk mitigation, patent rules, compulsory licensing, data protection, and market-entry options relevant to pharma products. The set aims to reinforce classroom learning with application-oriented multiple-choice questions that help you prepare for exams and for practical decision-making in export-oriented pharmaceutical businesses.

Q1. What is the primary objective of a national EXIM (export-import) policy in the context of pharmaceuticals?

• To ban all pharmaceutical imports to protect domestic industry
• To promote exports, facilitate regulated imports and enhance competitiveness of the domestic pharmaceutical sector
• To set fixed global prices for exported pharmaceuticals
• To nationalize all export-oriented pharmaceutical firms

Correct Answer: To promote exports, facilitate regulated imports and enhance competitiveness of the domestic pharmaceutical sector

Q2. Which commercial document is most commonly used to secure payment and reduce seller’s risk in international pharmaceutical trade?

• Commercial Invoice
• Bill of Lading
• Letter of Credit
• Packing List

Correct Answer: Letter of Credit

Q3. What is the primary function of an Export Credit Guarantee Corporation (ECGC) for pharmaceutical exporters?

• To provide clinical trial approvals for exported drugs
• To insure exporters against commercial and political payment risks
• To set export prices for pharmaceuticals
• To issue marketing authorizations in destination countries

Correct Answer: To insure exporters against commercial and political payment risks

Q4. Under Incoterms, which term requires the seller to place goods on board the vessel nominated by the buyer at the named port of shipment?

• CIF (Cost, Insurance and Freight)
• FOB (Free On Board)
• EXW (Ex Works)
• DDP (Delivered Duty Paid)

Correct Answer: FOB (Free On Board)

Q5. According to TRIPS, what is the minimum term of patent protection for inventions, including pharmaceutical inventions?

• 10 years from grant
• 15 years from filing
• 20 years from filing
• Life of the inventor

Correct Answer: 20 years from filing

Q6. Which TRIPS provision allows member countries to issue compulsory licenses for patented pharmaceuticals under certain conditions?

• Article 27
• Article 31
• Article 39
• Article 6

Correct Answer: Article 31

Q7. Which statement correctly describes regulatory data exclusivity in relation to TRIPS?

• TRIPS mandates at least five years of data exclusivity for all pharmaceuticals
• TRIPS requires lifetime data exclusivity for biologics
• TRIPS does not mandate data exclusivity; it is provided by some jurisdictions or FTAs beyond TRIPS obligations
• TRIPS prohibits any form of data protection for test data

Correct Answer: TRIPS does not mandate data exclusivity; it is provided by some jurisdictions or FTAs beyond TRIPS obligations

Q8. How does TRIPS treat parallel importation (exhaustion of intellectual property rights)?

• TRIPS requires all members to allow parallel importation
• TRIPS explicitly prohibits parallel importation
• TRIPS is silent on exhaustion and leaves the matter to national law
• TRIPS mandates international exhaustion as the standard

Correct Answer: TRIPS is silent on exhaustion and leaves the matter to national law

Q9. A major shift for pharmaceutical IP after implementation of TRIPS obligations for many developing countries was:

• Removal of any patent protection for pharmaceuticals
• Transition from permitting only process patents to requiring product patent protection
• Requirement to patent only natural substances, not synthetic ones
• Introduction of perpetual patent terms for medicines

Correct Answer: Transition from permitting only process patents to requiring product patent protection

Q10. What is the main purpose of a Certificate of Origin in pharmaceutical exports?

• To prove clinical efficacy of the product
• To certify the country where the goods were manufactured for tariff and preferential treatment
• To declare the wholesale price of the exported drug
• To register the product with the importing country’s regulator

Correct Answer: To certify the country where the goods were manufactured for tariff and preferential treatment

Q11. Which role do Export Promotion Councils typically play for pharmaceutical exporters?

• They issue drug marketing authorizations abroad
• They restrict exporters from attending trade fairs
• They provide market intelligence, training, and policy advocacy to support export growth
• They set mandatory export prices for all pharmaceuticals

Correct Answer: They provide market intelligence, training, and policy advocacy to support export growth

Q12. What practical purpose does the TRIPS Article 31bis serve in global public health?

• It abolishes patents for all medicines in developing countries
• It allows exporting of pharmaceuticals produced under compulsory license to countries lacking manufacturing capacity
• It mandates data exclusivity for exported drugs
• It requires that every WTO member manufacture all essential medicines domestically

Correct Answer: It allows exporting of pharmaceuticals produced under compulsory license to countries lacking manufacturing capacity

Q13. The TRIPS Agreement is administered and enforced through which international organization?

• World Health Organization (WHO)
• World Intellectual Property Organization (WIPO)
• World Trade Organization (WTO)
• United Nations Conference on Trade and Development (UNCTAD)

Correct Answer: World Trade Organization (WTO)

Q14. What does the Most-Favoured Nation (MFN) principle require in the context of WTO trade rules?

• A country must treat all other members equally with respect to trade concessions
• A country must always grant the lowest tariff to the poorest country only
• A country may favor one trading partner and discriminate against all others
• Only developed countries must apply MFN

Correct Answer: A country must treat all other members equally with respect to trade concessions

Q15. For a pharmaceutical firm wanting rapid market access abroad with minimal investment and retaining IP control, which market-entry mode is usually most appropriate?

• Export through direct sales only
• Foreign direct investment in a wholly-owned subsidiary
• Licensing the product to a local partner
• Establishing a local manufacturing plant without partners

Correct Answer: Licensing the product to a local partner

Q16. Which export document most directly certifies batch-specific quality attributes for a pharmaceutical shipment?

• Certificate of Free Sale
• Certificate of Analysis (CoA)
• Commercial Invoice
• Certificate of Origin

Correct Answer: Certificate of Analysis (CoA)

Q17. What is a tariff-rate quota (TRQ) in international trade?

• A quota that completely bans imports after a threshold
• A quota that allows unlimited imports at any tariff
• A quota allowing a specified quantity at a lower tariff and higher tariff for quantities above that level
• A quota that shifts annually between countries

Correct Answer: A quota allowing a specified quantity at a lower tariff and higher tariff for quantities above that level

Q18. What is the purpose of imposing a safeguard measure on pharmaceutical imports?

• To permanently ban all imports from a specific country
• To provide temporary protection to domestic industry against serious injury from increased imports
• To subsidize foreign producers entering the domestic market
• To nullify all existing trade agreements

Correct Answer: To provide temporary protection to domestic industry against serious injury from increased imports

Q19. Which TRIPS article specifically addresses protection of undisclosed test or other data submitted to regulatory authorities against unfair commercial use?

• Article 27
• Article 33
• Article 39.3
• Article 6

Correct Answer: Article 39.3

Q20. In the context of global preferences, what does “preference erosion” mean for a developing country exporter?

• Increase in preferential tariff margins due to new bilateral agreements
• The decline of the absolute volume of exports due to poor quality
• Loss of competitive advantage when other countries’ MFN tariffs are reduced, narrowing the preferential margin
• Complete elimination of customs procedures for exports

Correct Answer: Loss of competitive advantage when other countries’ MFN tariffs are reduced, narrowing the preferential margin

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