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3 C 30479

Define hybrid exchange rate.
Explain commodity terms of trade. +
What is Foreign exchange market ?
Define labour theory of value.
Define factor endowment.
What is dumping ?
(10 x 2 = 20 marks)
Part C (Short Essay Questions)

Answer any six questions.
Each question carries 5 marks.

Explain the important objectives of SAARC.

What is meant by equilibrium rate of exchange ? How is it determined ?

Explain the structure of Balance of Payment.

What are the important arguments in favour of free trade ?

Bring,out the important differences between internal trade and international trade.
Explain the Balance of Payment theory of exchange rate determination.

What are the important disadvantages of fixed exchange rate system ?

Explain the important criticisms leveled against Heckscher Ohlin theory of international trade.
(6 x 5 = 30 marks)
Part D (Essay Questions)

Answer any two questions.
Each question carries 12 marks.

Comment on the role of international trade in economic development of a country.
Explain the objectives and functions of International Monetary Fund.
Critically examine the Absolute Cost Advantage Theory of International Trade.
What are the important causes for BOP disequilibrium? Suggest measures to correct disequilibrium
in BoP.
(2 x 12 = 24 marks)