International agricultural trade UE Past Papers Questions.

Using partial equilibrium model, illustrate how improving and exporting countries benefit from trade.

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UNSOLVED

Who within an importing country benefits from imports of particular commodities and who is hurt?. Explain your answer using concept of consumer and producer surplus.

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UNSOLVED

There are two important classical theories of trade , the comparative advantage and resource endowment.

1. Describe the theories and their assumptions
2. Describe Porter`s theory of competitiveness constrasting it with classical theories.

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UNSOLVED

The table below indicates the labour unit required to produce 5 tons of potatoes and tomatoes(Man days)

1. Compare the two countries in terms of absolute advantage (Explain briefly)
2. Compare the two countries in terms of comparative advantage (Explain briefly)
3. Explain the concept they will both benefit only if they trade according to comparative advantage.

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UNSOLVED

International transaction is complicated by its impersonal exchange , use of different currencies and risks attributed to distance , product evaluation and monitoring and enforcement of exchange . Briefly discuss what is done to allow smooth international transactions.

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UNSOLVED