M.A. (Semester III) (CBCS) Examination Mar/Apr-2018
Economics (Paper XI)
INTERNATIONAL TRADE FINANCE
Time: 2½ Hours
Max. Marks: 70
Instructions: All questions are compulsory. Figures to the right indicate full marks.
Q.1
Select the appropriate word
14
When demand for import increases, then the terms of trade of the country is
unfavourable
favourable
constant
equal
The theory of gain from trade was the core of theory of international trade.
agreements
protection
modern
classical
The concept of Globalization is related to trade.
protected
restricted
free
static
The pure theory of international trade deal with of trade.
disequilibrium
equilibrium
static
all of the above
Benefits of development came to be shared by countries because of international trade.
developed
developing
developing and developed
backward
According to the Kravis composition of trade is determined by
elastic supply
national income
elastic demand
export
"Theory of advantage" is introduced by Adam Smith.
Trade
Profit
Income
Absolute
A tariff is said to be optimum when its rate maximize the of the country.
income
welfare
population
consumption
Heckscher-Ohlin Theory of International Trade is based on the assumption of
one country
two country
three country
four country
10) is the most important factor which determines the gain from trade.
Price
Expenditure
Transport
Terms of trade
Page 2 of 4
SLR-HW-172
11) A non-tariff barrier is a form of trade.
free
restrictive
control
all of the above
12) Import quota aims at restricting imports in order to correct disequilibrium in the
balance of income
balance of consumption
balance of trade
balance of production
13) The tariff implies the exploitation of monopoly power by a large country.
optimum
low
average
high
14) According to "The trade as an engine of economic growth".
Dr. Marshall
Ricardo
Adam Smith
Lewis
Q.2
Answer in brief. (Any seven)
14
What is balance of payment?
What is quota?
Give any two determining factors of gain from trade.
What is intra-industry trade?
Define terms of trade.
Define tariff.
What is opportunity cost?
Define globalization.
What is free trade?
Define dumping.
Q.3
Write short notes. (Any Two)
14
Effects of growth on trade.
Absolute Advantage theory of international trade.
Gains from international trade.
Trade made imperfectly competitive market.
Q.4
Answer any one of the following:
14
Explain the Linder theory of international trade.
OR
Explain "Trade as an engine of economic development".
Q.5
Discuss the factors which determine the terms of trade.
14