International agricultural trade questions.

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

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.

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.

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.

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.

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?

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.

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

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

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.