MEC-007 Solved Assignment 2018-19
MEC-007: INTERNATIONAL TRADE AND FINANCE
Course Code: MEC-007
Assignment Code: MEC-007/AST/2018-19
Maximum Marks: 100
Note: Answer all the questions. While questions in Section A carry 20 marks each (to be
answered in about 500 words each) those in Section B carry 12 marks each (to be answered
in about 300 words each). In the case of numerical questions word limits do not apply.
1. Critically discuss the Ricardian theory of Comparative Advantage. How is it different from
Adam Smith’s theory of Absolute Advantage?
2. Explain the various concepts of terms of trade. Critically examine the behavior of terms of
trade as explained by Prebisch
3. Explain multilateral framework of international trade. Explain its main features.
4. What are the various forms of economic integration? How is trade diversion different from
trade creation? Elucidate.
5. Describe the evolution of international monetary system. Examine the trends in the
international monetary and financial systems.
6. Discuss the various instruments of trade protection. Differentiate between quotas and
7. Critically examine the relative merits and demerits of the fixed and flexible exchange rates.