International Economics (ECST3202)
DIPET 1 in Economics - ECNT
Semester: Second Semester
Level: 300
Year: 2014
UNIVERSITYOF BAMEN DA
HIGHER TECHNICAL TEACHERS TRAINING COLLEGE (HTTTC)
International Economics; first semester Examination: 2013/14
Instructor: A. Peter Etoh Anzah (Senior Lecturer)
Instructions;
Attempt all questions. Time allowed is Two hours. All questions carry equal marks. Show proof of
your calculated answers.
1) What do you understand by a balance of payment disequilibrium? Explain its short term
causes.
2) Factoral terms of trade are defined as………………………………………………………………
3) Why do some authors in International Economics believe that a favourable trade balance for
a nation was possible only in the short run?...................................................................................
4) A Voluntary Export Restraint (VER) is defined as ................. ................................. …………
5) Mercantilist economic system centred on which two principal views? ...............
6) The difference between intra-industry and inter-industry trade is that ... .........
7) What is the major advantage of the absolute cost advantage theory? ... ............
8) What is the difference between a -specific and ad valorem tariff? ..... ... ............
9) The Comparative Cost Theory of international trade is aimed at .........................
10) ..................... .. ......... and ................... are responsible for a countries export instabilities.
11)The factor endowment theory of international trade was founded by ..........
12)How can we define factor endowment or factor abundance? ..................................
13) ..................... Theory holds that foreign trade provides a market for surplus productive
capacity.
14)………………………Theory is considered as a test for disguised unemployment.
15)An intra-industry trade index of 0< It < 1 implies that . .. .. .. ..............................
16)Given the volume of five goods imported by a country and their- tariff rates as follows: A=
cars,
B =Roofing sheets, C= shoes, D-boxes, E-plates. Calculate the weighted Average Tariff.
Goods
A
B
C
D
E
Volume of import
500 000
250 000
300 000
150 000.
1 000 000
Tariff rates (%)
10
15
16
20
12
17)What- two conditions influence an effective and efficient operation of international price
discrimination?
18)How can we check international trade through exchange controls? . ....... ... .........
19)Reallocation gain as a benefit of international trade is explained by ......................
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20)What is the vertical description of the balance of payments? ............ ... .................
‘Return all questions papers in your answer booklet. Defaulters to be seriously punished
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