OCTOBER 2004

Economic of Global Trade & Finance

N.B. (1) Attempt any Five questions.

(2) Marks allotted to the question are shown against each question.

1) (a) Critically explain the monetary approach to balance of payments. (12)

(b) To what extant is it an improvement over the earlier approaches? (08)

2) “Monetary policy should achieves external balance and fiscal policy should achieve internal
balance.” Discuss critically. (20)

3) (a) What is the role play by foreign exchange rate in economic stability of a country? (12)

(b) How does a country decides the most suitable foreign exchange rate for its self? (08)

4) (a) What are the function of foreign exchange market? (08)

(b) Critically examine the problem of foreign exchange market. (12)

5) Give a critical appraisal of the working of IMF, since 1990s with special reference to the
developing countries. Give some example. (20)

6) (a) Give a economic justification for protectionism in the world today. (10)

(b) Discuss the above question with your comments on ‘Protection against the Protectionism’
policies. (10)

7) (a) Discuss critically the condition which leads to the formation of economic unions in the
globalized world. (10)

(b) What are the harmful effect of such unions on global trade? (10)

8) Comment on the following ‘Open’ statements:

(a) Lake of international liquidity is the main difficulty in the way of global trade and finance. (10)

(b) Perfect mobility if capital is neither possible nor desirable internationally speaking. (10)

9) Explain critically the following statement:

(a) India is now ready for full capital account convertibility. (10)

(b) Current account is more important than capital account in the balance of payment. (10)

10) Write short notes on any of two of the following (20)

(a) Relationship between World Bank and IMF (b) MNCs and transfer of technology
(c) Euro-Dollar (d) Tariffs v/s Quotas.
OCTOBER 2008
Economic of Global Trade & Finance

1. a) How far do you think a deficit or a surplus influence the balance of payment position of
different types of countries? (10 Marks)
b) Critically examine the elasticity approach to the balance of payment adjustment. (10 Marks)
OR,
2.a) What are the international repercussions of the foreign trade multiplier? (10 Marks)
b) “The essence of direct controls is to restrict imports”. Comment. (10 Marks)

3.a) Explain the prospects of economic integration in South East Asia. (10 Marks)
b) Write a note on APEC. (10 Marks)
OR,
4. What are the various objectives of the WTO? How far has the WTO been successful in achieving
their objectives? (20 Marks)

5. a) Explain the following:- (10 Marks)

i) Spot Rate
ii) Forward Rate
iii) Nominal Exchange Rate
iv) Real exchange Rate
v) Effective Exchange Rate.
b) Briefly describe the role of various participants in the foreign exchange market.
OR,
6. a) “Foreign exchange markets are exposed to various types of risks.” Elaborate. (10 Marks)
b) What are the components of foreign exchange reserves? How far foreign exchange reserves are
important in the smooth conduct of International Trade? (10 Marks)

7. a) Describe the objectives and function of the IMF. (10 Marks)

b) Describe the problem of International liquidity. (10 Marks)
OR,
8. What is the various constitution of the Euro-currency market? Elaborate your answer.

9. a) Describe the role of foreign capital in economic development of country. (10 Marks)
b) Elaborate the various causes and effects of international financial crises of nineties. (10 Marks)
OR
10. What are the various institutions of the world bank extending development assistance to the
world economy? (20 Marks)
APRIL 2010 (OLD COURSE)
(3 Hours) [Total Marks: 100]

N.B. (1) All questions are compulsory.

(2) Figures to the right indicate marks.

1. (a) Explain the main constituents of the balance of payments of a country. (10)
(b) Critically examine the Elasticity Approach to the balance of payment problem. (10)
OR
2. Explain the expenditure adjusting and expenditure switching policies as a means to tide over the
disequilibrium in the balance of payments. (20)

3. (a) Explain the benefits of economic integration for developing countries. (10)
(b) Elaborate on the prospects of economic integration with special reference to ASEAN. (10)
OR
4. (a) Explain the Dispute Settlement Mechanism of WTO. (10)
(b) Explain TRIPS and TRIMS. (10)

5. (a) Prepare a case for and against the flexible exchange rate system. (10)
(b) Write a note on currency convertibility. (10)
OR
6. (a) Explain the following:- (10)
i) Hedging
ii) Arbitrage
(b) What are the constituents of the foreign exchange market? (10)

7. Write a critical note on working of IMF with special reference to exchange rate stability and
international liquidity. (20)
OR
8. (a) Explain the meaning Euro Currency, Euro Equity and Euro Bond Markets. (10)
(b) What factor determine the flow of foreign capital? (10)

9. (a) “The collapse of the global financial architecture is the manifestation of the absence of a
regulatory mechanism’-Elaborate”. (10)
(b) Write a note on the role of the World Bank. (10)
OR
10. (a) “Practice of new-protectionism is determine to the growth of world trade.”- Comment. (10)
(b) Examine the measures to solve the problem of International debt. (10)
APRIL 2010 (REVISED COURSE) LW-1325
(3 Hours) [Total Marks: 100]

N.B. (1) All questions are compulsory.

(2) Figures to the right indicate marks.

1. (a) Explain the concept of Foreign Trade Multiplier and bring out its global implications. (10)
(b) Discuss how a country can use monetary and fiscal policies for internal and external stability. (10)

2. (a) Explain the various types of Economic integrations. (10)

(b) Discuss the origin of NAFTA and its economic benefits. (10)

3. Evaluate the implication of WTO agreements on developing countries. (20)

4. (a) Discuss the impact of arbitrage, hedging and speculation in the foreign markets. (10)
(b) Explain the impact of exchange rate fluctuations on a developing economy. (10)

5. (a) Examine the different types of funds given by IMF. (10)

(b) Explain the different determinants of International Capital Movement. (10)

6. (a) Explain the factor responsible for the development of Euro-currency market. (10)
(b) Write a note on International Financial Integration with respect to European Union. (10)

7. (a) Explain the problems and management of International Debt. (10)

(b) What factors have lead to the formation of Singapore as a Financial Hub? (10)

8. (a) Explain the impact of non-tariff barriers on import and export of developing countries. (10)
(b) Discuss the prospects of Globalization of India and China. (10)
APRIL 2009 (REVISED COURSE)

( 3 Hours ) [ Total Marks : 100

N.B. :- (1) Answer any five questions.

(2) Figures to the right indicate full marks.

1. (a) What is Foreign Trade Multiplier? Discuss its international repercussions. [10]
(b) Explain internal and external balance in terms of IS-LM-BP schedules. [10]

2. (a) What is meant by economic integration? What are its forms? [10]
(b) Discuss the achievements and prospects of SAARC. [10]

3. (a) What are the implications of the WTO agreements on developing countries? [10]
(b) Discuss the various contentions issues of the WTO. [10]

4. (a) Outline the arguments for and against flexible exchange rates in a developing country. [10]
(b) Define currency convertibility. What are the issues in currency convertibility? [10]

5. (a) Examine the role of IMF with regards to the provision of International Liquidity. [10]
(b) What are the sources of foreign capital? Examine its role in developing countries. [10]

6. (a) Explain the important features of Euro-Currency Market. What are the factors that contributed
to its growth? [10]
(b) Discuss the role of European Monetary Union in the financial integration of the world. [10]

7. (a) Examine the nature of international financial crises of 1990’s. What lessons did we learn from
it? [10]
(b) Discuss the distinctive features that make Singapore the international financial Hub. [10]

8. (a) What do you mean by Non-Tariff Barriers? Explain them briefly. [10]
(b) Discuss the process and progress of globalization in India and China. [10]
APRIL 2009 (OLD COURSE)
( 3 Hours ) [ Total Marks : 100

N.B. :- (1) All questions are compulsory.

(2) Figures to the right indicate full marks.

1. (a) Evaluate whether a deficit in the balance of payments is necessarily bad for a country. [10]
(b) Bring out the superiority of the monitory approach to the balance of payments. [10]
OR
2. (a) Explain the working of the Foreign Trade Multiplier. [10]
(b) Discuss the importance of the use of Fiscal Policy for maintaining external balance. [10]

3. (a) Review the merits and demerits of economic integration. [10]

(b) Explain the role of ASEAN in achieving economic integration. Should South East Asian economics
resort to further integration? Comment [10]
OR
4. “The WTO has worsened the North-South divide.” Discuss. [10]

5. (a) Discuss the relative strengths of fixed exchange rate system. [10]
(b) Make a case for full convertibility of the Rupee for India. [10]
OR
6. (a) Explain spot, forward and effective rates of exchange. [10]
(b) Discuss the role of various constituents of the foreign exchange market. [10]

7. Evaluate the objectives and working of the IMF in solving the problem of international
Liquidity. [10]
OR
8. (a) Explain the importance of Euro-currency and Euro-bond market. [10]
(b) Discuss the various components of the Euro-currency market. [10]

9. (a) What are the major causes of the global financial crises of the 1990’s? [10]
(b) What lessons are learnt from the South-East Asian and South-American currency crises?
Elaborate. [10]
OR
10. (a) Elucidate the role of foreign capital in promoting economic development. [10]
(b) Review the relative merits and demerits of tariff and non-tariff barriers. [10]