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INT711S-INTERNATIONAL TRADE -2ND OPP- JULY 2024 |
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nAmlBIA unlVERSITY
OF SCIEnCE Ano TECHnOLOGY
FACULTY OF COMMERCE, HUMAN SCIENCESAND EDUCATION
DEPARTMENT OF ECONOMICS, ACCOUNTING AND FINANCE
QUALIFICATION: BACHELOR OF ECONOMICS
QUALIFICATION CODE: 12BECO
LEVEL: 7
COURSE CODE: INT711S
COURSE NAME: INTERNATIONAL TRADE
SESSION: JULY 2024
DURATION: 3 HOURS
PAPER: THEORY
MARKS: 100
SECOND OPPORTUNITY EXAMINATION QUESTION PAPER
EXAMINER(S)
MR EDEN TATE SHIPANGA
MODERATOR:
MR IMMANUEL NASHIVELA
INSTRUCTIONS
1. Answer only Four (4) questions.
2. Write clearly and neatly.
3. Number the answers clearly.
PERMISSIBLE MATERIALS
1. PEN,
2. PENCIL
3. CALCULATOR
THIS QUESTION PAPER CONSISTS OF 2 PAGES (Including this front page)
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Question 1 [25 marks]
1. Clearly draw a distinction between the main arguments of David Hume and Adam
Smith's critics of Mercantilism.
[15J
2. Draw a clear distinction of Adam Smith AA and David Ricardo CA, in explaining the
basis of international trade?
[1OJ
Question 2 [25 marks]
With the aid of graphs where necessary explain, the H-O model robustness of gain form trade
under the 2x2x2 assumptions:
1. Different production capacity and different consumption level
2. Disequilibrium of the OC and how the ToT is improved for the home country
[1OJ
[15J
Question 3 [25 marks]
Write brief notes on each of the following:
(a) Trade creation and trade diversion.
[8J
(b) Economic union and monetary union.
[8]
(c) Implications of an appreciation and depreciation of a currency.
[9]
Question 4 [25 marks]
The terms of trade (ToT) of less developed countries (LDCs) are often unfavourable. Present
a critical analysis of the ToT of LDCs. Do the LDCs have options to rectify the situation?
Please motivate your position.
Question 5 [25 marks]
Multinational Corporations are sometimes regarded as "international cockroaches". Do you
agree with this statement? Motivate your position.