QUESTION

Medium

Economy

Prelims 2011

In terms of economy, the visit by foreign nationals to witness the XIX Common Wealth Games in India amounted to

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Explanation

The visit of foreign nationals to India for the XIX Commonwealth Games can be considered as an export in economic terms.

This is because when these foreign nationals come to India, they bring foreign currency with them and spend it in India on various goods and services. This spending is equivalent to them buying Indian goods and services, which is why it is considered an export.

This falls under the Mode 2 type of service under WTO norms, where consumption of a service happens in the territory of the service provider.

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