International agricultural trade UE Past Papers Questions.

1. Briefly describe the five institutions that constitute the world bank group.
2. Consider the tabulation below which comprise foreign exchange quotations given by a bank to a customer . The figures given are for the US dollar (US$) and Deutsche Marks (DM) against Sterling POunds and the word “premium” or “discount” imply that the foreign currency quoted at the head of the column is at premium or discount respectively.

1. At what rate will the bank buy spot dollars against sterling pounds?
2. At what rate will the customer sell dollars one month forward against sterling pounds
3. At what rate will the bank buy Deutsche Marks three months forward against sterling pounds?

Answer / Solution

UNSOLVED

In the classical theories of international trade , theorist try to show that if countries are open to trade and they trade according to comparative advantage and /or based on resource endowment, trade will be mutually beneficial.

1. Describe the two clasical theories you kinow and their assumptions
2. Describe Porter`s theory of competitiveness contrasting with classical theories.

Answer / Solution

UNSOLVED

Discuss the following terms as parts of concepts and principles of international trade

1. Opportunity cost and comparative advantage
2. Depreciation and devaluation and devaluation of a currency

Answer / Solution

UNSOLVED

Using illustration briefly describe the effect of import Tariff and restrictive import quota imposed by a small country on its domestic market.

Answer / Solution

UNSOLVED

Regional integration has many forms including Free Trade Area (FTA). COmmon MArket(CM), CUstom UNion (CU) and common currency. Explain what thesese forms are and their  implication in international  trade and competitivenes of regional groups in the wolrld market.

Answer / Solution

UNSOLVED