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2 C 20739
Section B (Short Essay/paragraph Questions)

Answer at least five questions.

Each question carries 6 marks.

All questions can be attended.
Overall Ceiling 30.

What do you mean by foreign exchange market ? Explain major functions of foreign exchange
markets.

Distinguish between tariff and quota. What are the various types of tariffs ?

Ricardo’s comparative cost doctrine is one of the unchallenged theories of international
trade- Examine.

What are the different systems of exchange rate determination ? Distinguish between fixed and
flexible exchange rate.

Evaluate the arguments for and against free trade.
Discuss the interrelationship between international trade and economic development.
Prepare short notes on devaluation, revaluation, depreciation and appreciation.

Evaluate the role and functions of IMF.
(5 x 6 = 30 marks)
Section C (Long Essay Questions)

Answer any two questions.
Each question carries 10 marks.

Critically evaluate Heckscher-Ohlin theorem of international trade.

What do you mean by economic integration ? Evaluate the role of ASEAN and SAARC in promoting
the international trade.

Distinguish between balance of trade and balance of payments. Explain the structure of balance
of payments.

Critically examine the Purchasing Power Parity theory of exchange rate determination.

(2 x 10 = 20 marks)

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