15.
16.
17.
18.

19.
20.
21.
22.
23.

33.

3 D 11339
Define Factor Endowment.
Explain absolute advantage.
Briefly explain SAARC.
Define Import Quota.
What is meant by overvaluation ?
What is managed float ?
Explain Foreign Direct Investment.
Write a note on IMF.
What is meant by Currency Convertibility ?
Define inter regional trade.

(10 x 2 = 20 marks)
Part C (Short Essay Questions)

Answer any six questions.

Each question carries 5 mark.
Examine the components of Balance of Payments.
Briefly analyse the Mint Parity Theory of exchange rate determination.
Define foreign exchange market. What are the important functions of foreign exchange market ?

. Explain the main arguments in favour of free trade.

Explain Leontief Paradox in the context of Heckscher Ohlin Theorem.
Examine the importance of International Trade.

. What are the similarities between inter regional trade and international trade ?
. Briefly explain the Absolute Advantage Theory of International Trade.

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

Answer any two questions.
Each question carries 12 marks.

What are the important causes for BOP disequilibrium ? Suggest measures to correct disequilibrium
in BoP.
Turn over