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33.
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4 D 30278
What do you mean by hybrid exchange rate systems ?
Point out arguments for and against free trade.
Differentiate between balance of trade and balance of payments.
Examine Ricardian theory of comparative cost advantage.
The principal function of the IMF is to supervise the international monetary system. Explain.
Discuss the importance of international trade.

(6 x 5 = 30 marks)
Part D (Essay Type Questions)

Answer any two questions.

Each question carries 12 marks.
Explain Heckscher-Ohlin theorem of international trade and Leontief Paradox.
What is meant by BoP disequilibrium ? Explain various measures to correct BoP disequilibrium.
What is meant by economic integration ? Discuss any four types of economic integration.
Explain the Purchasing Power Parity theory of exchange rate determination.

(2 x 12 = 24 marks)

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