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CDS 2025 · PYQ · Indian Economy / International Trade · medium

Which of the following pairs is/are not correctly matched? 1. Global Value Chains (GVC) : International Product Sharing 2. World Integrated Trade Solutions : Database on GVC related Trade 3. Current Account Deficit (CAD) : Foreign Direct Investment Select the answer using the code given below:

  1. A.1 and 2 only
  2. B.2 and 3 only
  3. C.3 only✓ Correct
  4. D.1, 2 and 3

Explanation

Only pair 3 is incorrectly matched. Current Account Deficit (CAD) refers to the situation where a country's imports of goods, services, and transfers exceed its exports — it is not related to Foreign Direct Investment (FDI), which is a component of the Capital Account, not the Current Account. Pair 1 is correctly matched: Global Value Chains (GVC) indeed refer to international product sharing where production stages are spread across countries. Pair 2 is correctly matched: World Integrated Trade Solutions (WITS) is a World Bank software providing trade and tariff data, including database on GVC-related trade. Hence, only pair 3 is wrongly matched.
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