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International agricultural trade questions.

International agricultural trade questions.

Find International agricultural trade university examination questions in acaproso.com

# Question
1

Briefly account for assertions and critiques of the theory of comparative advantages.


Long answers
2

Country X has 2,400 units of labour available . It can produce two agricultural goods, oranges and mangoes. The unit labour required for orange production is 6, while the unit of labour required for mango production is 4.

  1. Graph country X`s production possibility frontier (PPF)
  2. What is the opportunity cost of oranges in terms of mangoes?
  3. Assuming country X is in autarky, what would be the price of oranges in terms of mangoes?

Mathematical Calculation
3

A country will export goods only if it`s cost of producing the good, relative to other goods, is at least as low as in other countries.


True OR False
4

If international trade takes place as a result of comparative advantage, it will increase the average well-being of people in participating countries.


True OR False
5

Countries gain from trade because world output can rise when each country specializes in what it does relatively well.


True OR False
6

According to the Leontief Paradox, a country should specialize in the production of goods that it produces more efficiently in comparison to other goods even if the country does not hold absolute advantage for that good.


True OR False
7

Special drawing rights (SDR) are new kind of reverse which the IMF would distribute to member countries in proportion to their quotas.


True OR False
8

The following equation represents the gravity nodel of the world trade.

T_{ij}=frac{A imes Y_{i} imes Y_{j}}{D_{ij}}

Where A is a constant term, T_{ij} is the value of trade between country i and country j , Y_{i} is country i`s GDP, Y_{j} is country j`s GDP and D_{ij} is the distance.

  1. Use the information in the above equation to concisely provide a verbal expression of the gravity model of the world trade.
  2. Briefly discuss the role of trade policies in strengthening regional value chains in Africa.

Mathematical Calculation
9

Write short notes on each of the following

  1. Exchange rates
  2. International Bank for Reconstruction and Development
  3. The spot market
  4. The Bretton Woods Institutions
  5. Free trade

Short answers
10

Describe the demand and supply conditions that are important for explaining, “Why do nations trade?”.


Short answers