International agricultural trade questions.

Developing countries face stringent food safety regulations and thus fail to export their products to developed countries`s markets. The solution to this problem is to strengthern south-to-south trade among developing countries. Assuming that you are a consultant and you are requird to give advice to trade policy formulation commitee composed of poor African countries that are highly dependent of agricultural exports, provide your candind statement on the problem and suggested solution.

Some developing countries have instituted trade olicies as a way of protecting their industries, siscuss the impact of trade protection to developing countries economies. Demonstrate showing clear understanding using examples of two trade policy instruments.

HD Enterprises have placed an order to import rice-milling machines from China. The machines will arrive in Tanzania in three equal lots and payment will be made then. The first lot will arrive not later than August while the other lots will arrive at intervals of one month each. The total value of the order is US $ 90,000. HD Enterprises has decided to cover itself with a forward option contract.The rates on the date the forward contract was agreed were.

Spot 690-670

1 month forward 8-6 pm

2 month forward 10-9 pm

3 month forward 15-10 pm

If the spot rate at the end of the 3 months is Tshs. 703-690 and the quoted forward rates are discounts, how much will each lot be in Tanzanian shillings.

There are three classical trade theories studied in class , the absolute advantage, compartive advantage and resource endowment.

1. Demonstrate your understanding of the models, listing their assumptions and assertions
2. Use Michael Porter`s model of trade to explain the forces leading to the existing trade patterns around the world.

1. Using the three -panel trade diagram , illustrate with explanation the impact of trade to:

1. Exporting country
2. Importing country

2. Illustrate the effect of import quota of a large country on its domestic market.

There are tariff and non-tariff barriers to trade . Some conditions in trade (such as food safety regulation, red tape administrative procedures and phytosanitary regulations) may also be classed as non -tariff barriers. Discuss.

What determines the international competitiveness of a nation`s output and how does international trade affect individual welfare and income distribution?.

On joining the IMF, each member country contributes a certain sum of money called a quota subscription, as a sort of credit union deposit.

1. What purposes do quota subscriptions serve? (Briefly describe three purposes).
2. How is the formula for quota subscription constituted?

Give a brief and concise description of the concept of Special Drawing Rights (SDR) and the reasons for its introduction?

Using information in Table below show that trade according to comparative advantage (CA) increasing world total output comparing with no trade sistuation. Also calculate how much more will be produced if each country allocate 1 ha and 1000ha specializing according to CA.

How much land required in producing 1 ton (Ha)