1. Comment on any four of the following statements:

Subsidies do not help local companies to be cost competitive.

Theory of comparative advantage provides the basis for international trade.

Instability in export earnings of developing countries is caused by both demand and supply factors.

Trade policy is an important instrument to regulate the foreign trade.

Globalisation refers to the absence of borders and barriers to trade between countries.

Intellectual Property Rights have become an important issue in current international business scenario.

Attempt any four questions from this part:

2. According to Heckscher-Ohlin-Samuelson theory, a country which is relatively abundant in labour will have comparative advantage in labour intensive goods. Do you agree? Give suitable illustrations in support of your answer.

3. Describe various activities performed by the World Bank. Do you think that these activities are beneficial for developing countries Substantiate your answer.

4. Discuss the importance of political environment in international business. Explain and give suitable illustrations in support of your answer.

5. What is WTO? Explain its broad objectives, structure and functions.

6. Discuss the areas and approaches to social responsibility of international business.

7. Discuss the following multilateral environment agreements:

The Montreal Protocol.

The Basel Convention.

8. Attempt short notes on any two of the following:

Terms of trade

SAARC

Rybczynski Theorem

Special Drawing Rights