University of Mumbai 2005 M.Com Accounting and Finance Economic of Global Trade

M.Com (Part I) Examination, October 2005
Economic of Global Trade & Finance

N.B. (1) All ques. are compulsory
(2) Figures to the right shows full marks.


1) (a) discuss the absorption approach and show that it is superior to the elasticity approach. (10)

(b) Critically evaluate the Mundell-Fleming assignment issue to the balance of payments. (10)

OR

2) (a) elaborate the main components of balance of payments? Bring out the significance of the study of the
balance of payments with reference to the developing country. (10)

(b) What is foreign trade multiplier? Bring out the inter relationship ranging from income modifications and the
balance of payments with the help of the foreign trade multiplier. (10)

3) Write notes on any two: (20)
(a) Open regionalism

(b) Implication of WTO’s agreements on developing countries.

(c) The patterns in global exports and the major derivation in global export since 1990.

OR

4) (a) elaborate the achievements and benefits of APEC. (10)

(b) Write a note on the role played by the Disputes Settlement Body of the WTO. (10)

5) (a) elaborate the function of foreign exchange market. (08)

(b) Bring out the economic impact of the foreign exchange rate fluctuations on the developing countries? (12)

OR

6) (a) Bring out the importance of foreign exchange reserves. (10)

(b) Write a note on arbitrage. (10)

7) (a) What do you meant by International Capital movements? elaborate its determinants? (10)

(b) What is Eurocurrency market? How does it influence the international monetary system? (10)

OR

8) (a) discuss the latest facilities given by the IMF to solve the issue of international liquidity. (10)

(b) How does foreign capital contribute to the economic development of developing countries? (10)

9) (a) What is strategic trade policy and elaborate its implications? (10)

(b) discuss the international financial crises in the 1990s and what lessons do we learn from it? (10)

OR

10) (a) Write a note on non-tariff barriers and the developing countries. (10)

(b) Enumerate the issue of international debt. (10)

Earning:   Approval pending.