M.A. DEGREE EXAMINATION, NOVEMBER/DECEMBER 2017.
Third Semester
Economics
Paper II INTERNATIONAL TRADE AND FINANCE
2 10332-A
Time 3 Hours Max. Marks 70
SECTION — A
Answer any FIVE questions. 6 30 Marks)
1. Theory of comparative advantage.
2. Examine the concept of Leontief's Paradox.
3. Features of Kravi theory of International Trade.
4. Assumptions of Rybzynski's theorem.
5. Hypothesis of Secular Deterioration of term of trade.
6. Trade as an Engine of Economic Growth.
7. Effects of Tariffs under general equalization.
8. Equilibrium and disequilibrium in the Balance of payments.
SECTION — B
Answer ALL questions. 10 40 Marks)
9. Critically analyze the Haberler's theory of Opportunity Cost.
Or
Outline the basic features of Hecksher Ohlin theory of international trade.
10. Analyze the relevance of the Factor price equilization theorem to the present
global economy.
Or
Briefly outline the basic features of the Stopler and Samuelson's theory of
international trade.

11. Write about the concept of Immiserizing growth and its policy implications on
development economies.
Or
Outline the issues relating to measurement of Gains from trade and their
distribution.
12. Explain the meaning and concepts of Balance of Payments and causes for its
disequilibrium.
Or
Discuss about the economic effects of Tariffs and Quotas on National Income,
Output and Employment.
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