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3

Identify the correct statement/s related to Leontiefs paradox:

Statement I : Leontiefs paradox undermined the validity of the H-O theory.

254448

D 30278

Statement II: In 1953, Leontief found that the United States exported commodities that were

more capital intensive than labour intensive
a) Statement I alone is correct. 0) Statement II alone is correct.

c) StatementsI and II are correct. d) Statements I and II are incorrect.

(12 x %= 6 marks)

Part B (Very Short Answer Questions)

Answer any ten questions.

Each question carries 2 marks.
Define gains from trade.
What do you mean by international economics ?
What is meant by foreign exchange ?
What is currency convertibility ?
What is Tariff?
Define Speculation.
What do you mean by anti-dumping duty ?
Differentiate between spot market and forward market.
Define Mercantilism.
What is meant by terms of trade ?
Distinguish between FDI and FPI.
What is meant by managed floating ?
(10 x 2
Part C (Short Essay Type Questions)

Answer any six questions.
Each question carries 5 marks.

Explain the meaning and functions of foreign exchange market.

Prepare a note on tariff and non-tariff trade barriers.

254448

= 20 marks)

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