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Question

India and Russia are increasingly opting to route goods operations through third countries such as the United Arab Emirates (UAE).What is the advantage of routing goods operations through the UAE?

A Avoiding taxes and tariffs Correct Answer Incorrect Answer
B Promoting local businesses Correct Answer Incorrect Answer
C Facilitating transactions in multiple currencies Correct Answer Incorrect Answer
D Reducing transportation costs Correct Answer Incorrect Answer
E None of these Correct Answer Incorrect Answer

Solution

With the provision of rupee-settled trades gaining acceptance gradually, India and Russia are increasingly opting to route goods operations through third countries such as the United Arab Emirates (UAE), thereby facilitating transactions in currencies other than rupees, roubles and dollars. The push is toward facilitating trade through the UAE as the country’s currency — the dirham is pegged to the dollar and enjoys global stability.

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