Mec-007 Eng

No.
of Printed Pages : 4 MEC-007
MASTER OF ARTS (ECONOMICS)

Term-End Examination
June, 2018
MEC 007 : INTERNATIONAL TRADE AND

-
FINANCE
Time : 3 hours Maximum Marks : 100
Note : Attempt questions from each section as per
instructions given.
SECTION A
Answer any two questions from this section. 2x20=40
1. What do you mean by surplus or deficit in balance

of payments ? What purpose do autonomous
and accommodating flows serve in balance of
payments ?
2. Distinguish between bilateralism, regionalism
and multilateralism. Are regional trading blocks
promoters of free trade ? Give reasons for your
answer.
3. Explain why protectionism is justified.
Differentiate between tariff and non-tariff
barriers of international trade.
4. Examine the recent trends in India's balance of
payments. How far have trade policy reforms
impacted our BoP ?
MEC-007 1 P.T.O.
SECTION B
Answer any five questions from this section. 5x12=60
5. Differentiate between the views of Adam Smith

and Ricardo on International Trade.
6. Discuss the rationale behind import substitution

strategy for industrialisation. Explain the
appropriate tools for implementing this strategy.
7. Explain fixed exchange rate mechanism under

the Bretton Woods system. Why has there been a
shift to floating exchange rate system ?
8. Examine the reasons behind East Asian Crisis of

1997. What lessons do you draw from this crisis ?
9. Discuss in brief, the concept of 'Trade in

Services'. Explain the different modes of
providing services under GATS.
10. What is meant by unfair trade ? Explain its

various forms.
11. Explain briefly, income adjustment and foreign

trade multiplier with repercussion effects.
12. Explain the following concepts :

(a) Commodity Terms of Trade
(b) Income Terms of Trade
(c) Single Factorial Terms of Trade
(d) Double Factorial Terms of Trade
MEC-007 2
No. of Printed Pages : 4 MEC-007
Cr) MASTER OF ARTS (ECONOMICS)

O
O December, 2011
MEC-007 : INTERNATIONAL TRADE AND

FINANCE
Note : Attempt questions from each section as per the
instructions given.
SECTION - A
Answer any two questions from this section.
2x20=40
1. Discuss the Hecksher - Ohlin theorem of
international trade.
2. Examine the problems of developing countries in

the era of multilateralism.
3. What is Customs Union ? Explain. Are regional

trading blocs Promoters of Growth ?
4. Critically examine the reasons for BOP crisis in

early 1990s. What are the present trends in
current account and capital account of India's
BOP.

MEC-007 1 P.T.O.
SECTION - B
5. What is unfair trade ? Explain its various forms.
6. Explain briefly income adjustment and foreign

trade multiplier with repercussion effects.
7. Discuss various components of BOP. Explain the

statement that "Balance of payments always
balances."
8. Critically analyse the linkage between export and

growth.
9. Briefly explain the concept of effective rate of

protection.
10. How many modes of providing services are given

under CATS ? Briefly explain the process of
service negotiations under Uruguay Round.
11. Briefly examine the impact of capital mobility on

fiscal policy.
MEC-007 2

or Term-End Examination
O December, 2014
C
FINANCE
Note : Attempt any two questions from section 'A' and five
questions from section 'B'.
SECTION - A 2x20=40
1. Critically evaluate India's trade policy and it's
performance in the post-reform period.
2. What are the main functions of IMF ? Discuss

the important features of SDRs. How far creation
of SDRs solved the problem of International
Liquidity ?
3. Discuss with the help of a diagram the partial

equilibrium effects of a tariff on consumption,
production, trade and revenue in a tariff imposing
country. What is meant by the cost of protection
or dead weight loss of a tariff ?
4. "Comparative advantage seems to determine the

pattern of inter-industry trade, while economies
of scale in differentiated products give rise to
intra-industry trade". In the light of above,
examine the relationship between inter-industry
and intra-industry trade with the help of suitable
examples.
MEC-007 1 P.T.O.
SECTION - B 5x12=60
5. Explain the concept of effective rate of protection
and show its significance.
6. What does the factor price equalisation theorem

postulate ? What is its relation with the
international mobility of factors of production ?
7. What do you mean by surplus or deficit in BOP ?

Is deficit necessarily bad and surplus necessarily
good ?
8. Discuss briefly Leontief's paradox. Do you think

it invalidates the Heckscher Ohlin theory of
international trade ?

(c) Single Factoral Terms of Trade
(d) Double Factoral Terms of Trade
10. Examine the trends in trade in services in India

during the last five years.
11. What is Purchasing Power Parity Theory for

exchange rate determination ? Explain the
difference between the Relative and Absolute
Versions of this theory.
MEC-007 2
05060

December, 2015

FINANCE
instructions given.
SECTION A
1. Discuss the Heckscher-Ohlin model of

international trade. How is it different from the
Ricardian model of international trade ?
2. Examine the case for trade protection. Discuss
the various tariff and non-tariff barriers to
3. Discuss India's trade policy reforms in the
post-1991 period. Examine the impact of reforms
on recent trends in India's balance of payments.
4. Explain fixed exchange rate mechanism under
the Bretton Woods system. Why has there been a
shift to floating exchange rate system ?
MEC-007 1 P.T.O.
SECTION B

of payments ? Distinguish clearly between
autonomous and accommodating items in balance
of payments.
6. With reference to International trade theory

explain the following :
(a) Product Life Cycle
(b) Gravity Model of Trade
7. Explain the welfare effects of trade creation and

trade diversion within a customs union.
8. Discuss India's concern in WTO negotiations with

special reference to the following :
(a) Agriculture
(b) Non-Agriculture Market Access (NAMA)
(c) Intellectual Property Rights (IPRs)
9. What is dumping ? Why do countries impose

anti-dumping duties ?
10. Briefly explain Marshall-Lerner condition of

exchange rate regime.
MEC-007 2
11. Explain the relationship between globalisation
and free trade.
12. What does capital account convertibility imply ?

Why has India been slow on capital account
convertibility ?
MEC-007 3 P.T.O.
June, 2014
MEC-007 : INTERNATIONAL TRADE AND FINANCE
Note : Answer questions from each section as directed.
SECTION I
1. What are the salient features of Heckscher-Ohlin

model of international trade ? Explain the
relevance of this model in the present context.
2. Examine the functioning of WTO as a

multilateral trade organisation. What explains
the impasse in the successful conclusion of Doha
Round of Negotiations ?
3. Examine the recent trends in India's Balance of

Payments. How far have trade policy reforms
impacted our BoP ?
4. Explain briefly the Prebisch-Singer thesis. Do

you think that the trend in terms of trade of
developing countries has been continuously
declining ?
MEC-007 1 P.T.O.
SECTION II
Answer any five questions from this section. 5 x 12=60
5. Distinguish between import duty and quota.

What justifications would you like to give for
preference to tariffs over quota ?
6. Briefly examine the experiences of Gold

Exchange Standard Regime during 1945 — 71.
7. Distinguish between FII's (Foreign Institutional

Investors) and FDI inflows. What explains the
slow growth of FDI inflows in India in the recent
years ?
8. Distinguish between countervailing and

anti-dumping duties. Justify the reasons for
anti-dumping duties.
9. Critically evaluate the Purchasing Power Parity

theory of the exchange rate determination.
10. What is the difference between nominal and

effective rate of protection ? Explain usefulness
of the concept of effective rate of protection.
11. How do you distinguish between surplus or

deficit in Balance of Payments (BoP) ? List three
items each in autonomous and accommodating
transactions in BoP.
MEC-007 2
June, 2015
0 4 0 9.6
mEC-007 : INTERNATIONAL TRADE AND
FINANCE
instructions given.
SECTION A
1. Distinguish between bilateralism, regionalism and
multilateralism. Are regional trading blocks
promoters of free trade ? Give reasons for your
answer.
2. Critically examine the modern theory of
international trade with special reference to
intra-industry trade and economies of scale.
3. Explain the relationship between Foreign Direct
Investment (FDI) and economic development.
Examine the role of FDI flows in India's economic
development.
strategy for industrialisation. Explain the
MEC-007 1 P.T.O.
SECTION B
5. Explain the dispute settlement process of the

World Trade Organisation. Illustrate your answer
with some recent examples.
6. What is unfair trade ? Explain its various forms.
7. What is trade-in-services' ? Explain the different

modes of trade-in-services' as mentioned in the
General Agreement on Trade-in-Services (GATS).
8. Define the term Balance of Payments (BoP).

Explain the autonomous and accommodating
items in the capital account of the Balance of
Payments.

Differentiate between tariff and non-tariff
10. Describe the salient features of Bretton Woods

System. Is this system relevant in the present
context ?
11. Examine India's trade policy and performance in

the post-liberalisation period.
12. Discuss the formation of South Asian Free Trade

Area (SAFTA). What role did India play in its
formation ?
MEC-007
No. of Printed Pages : 4 I MEC-0071
June, 2016
CD MEC-007 : INTERNATIONAL TRADE AND

FINANCE

instructions given.
SECTION - A
Answer any two questions from this section :
2x20=40
1. Differentiate between Adam Smith and Ricardo's
Theory of International Trade.
2. Explain the reasons for trade protectionism. Do

you think the global economy has gone back to
protectionism ?
3. What are the issues related to current account

sustainability ? Do you think India's current
account is sustainable under the present
circumstances ?
4. What do you understand by the terms of trade ?

What are its various terms ? Explain and
Distinguish between :
(a) Single factorial terms of trade
(b) Double factorial terms of trade
MEC-007 1 P.T.O.
SECTION - B
Answer any five questions from this section :
5x12=60
of payments ? What purpose autonomous and
accommodating flows do serve in balance of
payments ?
6. Do countries benefit from trade when there is

monopoly in the domestic market ?
7. What are the reasons behind the growing

importance of services in trade ?
8. Elaborate important export promotion measures

including major innovative schemes launched in
recent years.
9. Examine the impact of capital mobility an

expansionary monetary policy.
10. Discuss briefly the major components of reforms

in India's trade policy since 1991.
11. Critically evaluate the role played by developing

countries under GATT.
MEC-007 2

rN
N June, 2011

FINANCE
instructions given.
SECTION - A
2x20=40
1. Critically examine the Traditional Trade theories
with special reference to theories propounded by
Adam Smith and David Ricardo.
2. What is multilateral framework on international

trade ? Explain its main features.
3. Explain various concepts of terms of trade.

Analyse how terms of trade behave in case of
primary commodities.
4. Critically appraise the Indian Trade Policy since

liberalisation in 1991.
MEC-007 1 P•T•O•
SECTION - B
Attempt any five questions from this section.
5x12=60

Differentiate between tariff and non - tariff
6. Briefly examine experiences of Gold Standard

Regime during 1880 - 1914.
7. Critically evaluate the FDI flows in India during

last two decades.
8. Explain the composition and direction of India's

trade after liberalisation.
9. What is dumping ? Why do countries impose anti

- dumping duties ?
10. Briefly explain Marshall - Learner condition of

exchange rate regime.
11. Examine the trends in trade in services world over

2000 onwards.
MEC-007 2
No. of Printed Pages : 5 I MEC-007
December, 2018
04241
FINANCE
instructions given.
SECTION - A
2x20=40
1. With reference to International Trade theory
(a) Product Lffe Cycle.
(b) Gravity Model of Trade.
2. Define the term Balance of Payments (BOP). What
are its components ? Explain the autonomous and
accommodating items in the capital account of
the balance of payments.
3. Distinguish between nominal rate of protection
and effective rate of protection. What are the
implications when the effective rate of protection
is :
(a) equal to the nominal rate of protection;
(b) greater than the nominal rate of
protection; and
(c) negative
MEC-007 1 P.T.O.
4. Discuss the role and functions of external debt in
the case of developing economies. Point out the
factors that led to the shift of investment spending
from the developed to the developing countries.
SECTION - B
convertibility ?
6. Explain the trends in India's trade in services since
1991.
7. Critically discuss Prebisch's argument on the
behaviour of the terms of trade in the case of
developing countries.
8. What is 'trade in services' ? Explain the different
modes of 'trade in services' as mentioned in the
General Agreement on Trade in Services (GATS).
9. What are the current issues regarding agriculture
and services sector concerning India in WTO ?
10. "Trade creation is always welfare increasing while
trade diversion may be welfare reducing."
Critically examine this statement.
11. Discuss Leontief's paradox. Do you think it
invalidates the Heckscher-Ohlin theory of
International Trade ?
12. What is Purchasing Power Parity Theory for
exchange rate determination ? Explain the
difference between the Relative and Absolute
Versions of this theory.
MEC-007 2
No. of Printed Pages : 4 I MEC 007I-

ir)
December, 2017
c\I
0 MEC-007 : INTERNATIONAL TRADE AND
FINANCE

instructions given.
SECTION - A
1. Explain fixed exchange rate system under gold
standard and under Bretton Woods system. Why
has there been a shift to floating exchange rate
system ?
2. Briefly explain the relationship between FDI and

development. Critically appraise the FDI flows
in India.
3. Critically explain the main justification given for

protectionism. Indicate non - tariff barriers
adopted by countries to protect domestic
investors.
4. What are the various alternative explanations to

the theory of international trade ? Explain
strategic trade theory and point out its importance
in modern times.
MEC-007 1 P.T.O.
SECTION - B
Answer any five questions from this section.
5x12=60
5. Explain the welfare effects of trade creation and
trade diversion within a customs union.
6. What is 'trade in services' ? Explain the different

modes of 'trade in services' as mentioned in the
General Agrement on Trade in Services (GATS).
7. What do you mean by balance of payments ?

Explain its components. How does balance of
payments always balances ?

9. What is meant by dumping ? Why do countries

impose anti-dumping duties ?
10. Are regional trading arrangements building blocks

or stumbling blocks to a multilateral trading
system ? Explain.
11. With reference to International trade theory

(a) Product Life Cycle.
(b) Gravity Model of Trade.
MEC-007 2

Term-End Examination.
1h-
O December, 2012
O
FINANCE
Note : Attempt questions from each section as per instructions
given.
SECTION - A
Answer any two questions from the following
section : 2x20=40
1. Critically evaluate India's trade policy and
performance in the post - liberalisation period.

strategy for industrialization. Explain the
3. 'Balance of Payments is a monetary phenomenon'.

4. Critically examine the Hecksher - Ohlin theorem

of International Trade.
MEC-007 1 P.T.O.
SECTION - B
5x12=60
5. Discuss European Union (EU) as a Regional
Economic Bloc. Explain its formation and growth
over the years.
6. Describe the salient features of Bretton Woods

System ? Is this system relevant in the present
context ?
7. Discuss the important principles governing trade

in goods under WTO regime.
8. Explain in brief the trends in trade in services since

1991.
9. Discuss the formation of South Asian Free Trade

Area (SAFTA). What role did India play in its
formation ?
10. What is expansionary monetary policy ? Examine

the impact of capital mobility on it.
11. Why did India delay its Trade Policy reforms ?

List three main causes of BOP crisis in India in
1991.
MEC-007 2

December, 2013
FINANCE
instructions given.
SECTION - A
2x20=40
1. Explain the main features of Hecksher-Ohlin
Model and also analyse the Factor-Price
equalisation theorem in this context.
2. Explain how benefits from free trade occur in the

presence of economics of scale and product
differentiation.
3. Critically examine the monetary theory of balance

of payments.
4. Distinguish between nominal rate of protection
effective rate of protection. What are the
implications when the effective rate of protection
is
(a) equal to the nominal rate of protection ;
(b) greater than the nominal rate of
protection ; and
(c) negative ?
MEC-007 1 P.T.O.
SECTION - B
Answer any five questions from this section :

5x12=60
5. What do you mean by trade diversion effect of
regional block ?
6. Evaluate the FD1 inflows in India since. 2001.

Why India has been slow on capital account
convertibility ?
8. How do you assess foreign trade's contribution

to economic growth in India in post-reform
period ?

10. What is the role of IMF in the management of

external debt crisis ?
11. Discuss the relative merits and demerits of fixed

and flexible exchange rate regimes.
MEC-007 2

co December, 2016
FINANCE

instructions given.
SECTION - A
2x20=40
1. What theorem is derived from the assumption in
the Heckscher-Ohlin model that the two countries
share the same technology and that markets are
perfectly competitive ? Critically explain.
2. What are the reasons behind growing importance

of services in trade ? Explain the consequences of
inclusion of services in multilateral trade
negotiations.
3. Explain the concept of opportunity cost used by

Ricardo. Indicate the causes as explained by
Ricardo that result in the differences in
opportunity cost and comparative advantage.
MEC-007 1 P.T.O.
4. Critically evaluate the role of Regional Trade
Agreements in global trade. Also, discuss its
welfare effects both in case of :
(a) trade diversion
(b) trade creation
SECTION - B
5x12=60
5. Analyse major changes in the composition and
direction of India's foreign trade in post reform
period.
6. How many stages are there in Posener Vernon

theory of International trade ? What are those
stages ?
7. List main causes of balance of payments crisis in

India in 1991.
8. Differentiate between external assistance and

external commercial borrowing.
9. Critically evaluate Stolper Samuelson's Theory of

International trade.
10. Point out the important dimensions of global

financial and monetary system.
11. Is ASEAN a successful trading block ? Give

reasons in support of your answer.
MEC-007 2
N MASTER OF ARTS (ECONOMICS)

00
O June, 2012

FINANCE
instructions given.
SECTION - A
Answer any two questions from the following
section : 2x20=40
1. Critically evaluate the pattern and trends of FDI

flows in India.
2. "Trade creation is always welfare increasing while

trade diversion may be welfare reducing".
3. Why was the Prebisch's argument criticised ?

Discuss the reasons behind terms of trade
deterioration of developing countries.
4. Explain the logic behind infant industry argument

for restricting trade. Briefly analyse the infant
industry and market failure arguments for
protection.
MEC-007 1 P.T.O.
SECTION - B
Attempt any five questions from this section.
5x12=60
5. Examine the reasons behind East Asian Crisis
1997. What lessons do you draw from this crisis ?
6. Discuss in brief the concept of 'trade in services'.

Explain the different modes of providing services
under GATS.
7. Critically evaluate the role of IMF in providing

finance to crisis-ridden countries.
8. What do you understand by 'differential

treatment in reverse' ? Discuss this statement.
9. Briefly explain the agenda and main issues under

Doha Round of Negotiations.
10. Examine the impact of capital mobility on fiscal

policy.
11. Briefly discuss the components of India's trade

policy reforms since 1991.
MEC-007 2

June, 2013

FINANCE
instructions given.
SECTION - A
2x20=40
1. Explain the salient features of Ricardian
Comparative Cost Advantage theory of
2. How do economies of scale facilitate international

trade ? Identify some specific sectors to illustrate
your answer.
3. Explain the reasons for trade protection. Do you

think has the global economy gone back to
protectionism ?
4. Why there is roadblock in WTO negotiations ?

What is India's position in these negotiations ?
MEC-007 1 P.T.O.
SECTION - B
5. What do you understand by terms of trade ?

Distinguish between net barter terms of trade and
income terms of trade.

of payments ? What purpose autonomous and
accommodating flows do serve in balance of
payments ?
7. Explain with the help of diagram the trade

creation effects of a regional block.
8. Discuss briefly the major components of reforms

in India's trade policy since 1991.
9. Analyse major change in the composition and

direction of India's foreign trade in post-reform
period.
10. State the difference between devaluation and

depreciation of a currency. Why Indian rupee
has consistently depreciated in last two years ?
11. How do countries benefit from free trade when

domestic markets are perfectly competitive ?
MEC-007 2

0:2E34 1 June, 2017

FINANCE

instructions given.
SECTION A
1. Discuss the welfare effects of Regional Trade

Agreements, in case of both
(a) Trade diversion and
(b) Trade creation
Briefly explain the role of RTAs as a promoter of
global trade.
2. What are the reasons behind the growing

importance of services in trade ? Explain the
consequences of inclusion of services in
multilateral trade negotiations.
MEC-007 1 P.T.O.
3. Discuss the Heckscher-Ohlin model of
International Trade. How is it different from the
Ricardian model of International Trade ?
4. Critically examine the case for trade protection.

Discuss the various tariff and non-tariff barriers
to protect trade.
MEC-007 2
SECTION B
5. Define the term Balance of Payments (BOPs).

Explain the autonomous and accommodating
items in the capital account of the balance of
payments.
6. Critically examine the strategic theory of

7. Evaluate India's trade policy and performance

in the post-liberalisation period.
8. Discuss India's concern in WTO negotiations

with special reference to the following :
(a) Agriculture
(b) Non-Agricultural Market Access (NAMA)
(c) Intellectual Property Rights (IPRs)

convertibility ?
10. Distinguish between countervailing and

anti-dumping duties. Justify the reasons for
anti-dumping duties.
MEC-007 3 P.T.O.
(c) Single Factorial Terms of Trade
(d) Double Factorial Terms of Trade
MEC-007 4

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of Printed Pages : 4 MEC-007

MASTER OF ARTS (ECONOMICS)

MEC 007 : INTERNATIONAL TRADE AND

Answer any two questions from this section. 2x20=40

1. What do you mean by surplus or deficit in balance

Answer any five questions from this section. 5x12=60

5. Differentiate between the views of Adam Smith

6. Discuss the rationale behind import substitution

7. Explain fixed exchange rate mechanism under

8. Examine the reasons behind East Asian Crisis of

9. Discuss in brief, the concept of 'Trade in

10. What is meant by unfair trade ? Explain its

11. Explain briefly, income adjustment and foreign

12. Explain the following concepts :

Cr) MASTER OF ARTS (ECONOMICS)

MEC-007 : INTERNATIONAL TRADE AND

2. Examine the problems of developing countries in

3. What is Customs Union ? Explain. Are regional

4. Critically examine the reasons for BOP crisis in

6. Explain briefly income adjustment and foreign

7. Discuss various components of BOP. Explain the

8. Critically analyse the linkage between export and

9. Briefly explain the concept of effective rate of

10. How many modes of providing services are given

11. Briefly examine the impact of capital mobility on

MASTER OF ARTS (ECONOMICS)

2. What are the main functions of IMF ? Discuss

3. Discuss with the help of a diagram the partial

4. "Comparative advantage seems to determine the

6. What does the factor price equalisation theorem

7. What do you mean by surplus or deficit in BOP ?

8. Discuss briefly Leontief's paradox. Do you think

9. Explain the following concepts :

10. Examine the trends in trade in services in India

11. What is Purchasing Power Parity Theory for

MASTER OF ARTS (ECONOMICS)

MEC-007 : INTERNATIONAL TRADE AND

Answer any two questions from this section. 2x20=40

1. Discuss the Heckscher-Ohlin model of

Answer any five questions from this section. 5x12=60

5. What do you mean by surplus or deficit in balance

6. With reference to International trade theory

7. Explain the welfare effects of trade creation and

8. Discuss India's concern in WTO negotiations with

9. What is dumping ? Why do countries impose

10. Briefly explain Marshall-Lerner condition of

12. What does capital account convertibility imply ?

MEC-007 : INTERNATIONAL TRADE AND FINANCE

Time : 3 hours Maximum Marks : 100

Note : Answer questions from each section as directed.

1. What are the salient features of Heckscher-Ohlin

2. Examine the functioning of WTO as a

3. Examine the recent trends in India's Balance of

4. Explain briefly the Prebisch-Singer thesis. Do

5. Distinguish between import duty and quota.

6. Briefly examine the experiences of Gold

7. Distinguish between FII's (Foreign Institutional

8. Distinguish between countervailing and