Q1. (a) How do offer curves define the equilibrium relative commodity price?
(b) What forces would push a non-equilibrium relative commodity price towards the equilibrium level?
Q2. What is meant by Intra-Industry trade? How it can be measured? How monopolistic competition model is used to measure Intra-industry trade?
Q3. (a) What is meant by production and or consumption being protrade, anti-trade or neutral?
(b) What type of Growth will most likely lead to a decline in the nation’s welfare? What is meant by Immiserizing growth?
Q4. (a) Derive the Foreign Trade Multiplier.
(b) How does a depreciation or devaluation of a nation’s currency operate to eliminate a deficit in the current account of Balance of payments?
Q5. Compare and contrast the partial equilibrium effects of in import quota with an import tariff.
(a) Trade creating custom unions and stalk welfare effects.
(b) Trade diverting custom unions and static welfare effects.
Q7. Write note on any TWO of the following:
(a) Leontief Paradox
(b) Effective Protection
(c) Factor-Intensity reversal