M.A. (Semester III) (CBCS) Examination, 2017
ECONOMICS (Paper XI)
International Trade Finance
Day Date: Tuesday, 09-05-2017 Max. Marks: 70
Time: 10.30 AM to 01.00 PM
N.B. All questions are compulsory.
Figures to the right indicate full marks.
Q.1 Rewrite the following sentences by choosing the correct
alternatives from those given below:
14
The concept of to the quantity of goods bought sold
the prices at which they are traded.
exchange rate terms of trade
balance of trade balance of payment
___enables developing countries to make use of technology
developed by advanced countries.
Globalization Nationalization
Privatization Rationalization
International trade promotes specialization on the basis of
advantage.
equal unequal
comparative relative
an important significant achievement of international
trade.
Full employment Economic stability
Maximum welfare Equalization of income
The principle of comparative advantage was developed on the basis
of assumption.
law of constant returns law of diminishing returns
law of increasing returns law of variable returns
The actual terms of trade will be determined by ___elasticities of
demand for each other commodity.
more relative
less Zero
Benefits of development come to be shared by ___countries
because of international trade.
developed developing
developed developing backward
The Opportunity Cost Theory by superior to the classical
theory o comparative cost advantage.
Kindleberger Leontief
Samuelson Haberler
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developed the availability theory against the
comparative cost theory.
J.B. Kravis Jecab Viner
Adam Smith J. S. Mill
10) an index of the total gain from international trade.
Factor terms of trade Income terms of trade
Commodity terms of trade Barter terms of trade
11) Tariff can affect on
import volume prices of goods
level of production all the above
12) The comparative cost advocates geographical specialization
through
large scale production small scale production
division of labour production function
13) the market forces of demand supply to operate
freely.
Tariffs Import Quotas
Export Quotas Subsidies
14) Free trade led to cut throat competition in the world market so
that exporters resorted to
smuggling dumping
protection agreement
Q.2 Write short answer [Any seven] 14
What is growth?
Define the concept welfare.
Write two assumptions of the pure theory of international trade.
Give two effects of growth on trade.
Write two features of Linder's theory of trade.
What are potential gains from international trade?
What is opportunity cost?
Give two limitations on terms of trade.
What are non-tariff barriers?
10) Define general equilibrium.
Q. 3 Write short notes any two) 14
Free trade domestic prices
Role of MNC's
Measurement of intra industry trade
Role of dynamic factors in the emergence of trade
Q.4 Critically evaluate Heckscher Ohlin theory of trade. 14
OR
What are the economic effects of tariffs quotas on developing
developed countries?
Q.5 What are gains from trade? Explain factors determining the gains
from trade.