University of Mumbai 2004 M.Com Accounting and Finance Economic of Global Trade & Finance - - I '04 - Question Paper

M.Com (Part I) Examination, October 2004
Economic of Global Trade & Finance

N.B. (1) Attempt any 5 ques..
(2) Marks allotted to the ques. are shown against every ques..

1) (a) Critically discuss 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.”
explain 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) elaborate the function of foreign exchange market? (08)

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

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

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

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

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

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

8) Comment on the subsequent ‘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 subsequent 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 2 of the subsequent (20)

(a) Relationship ranging from World Bank and IMF (b) MNCs and transfer of technology
(c) Euro-Dollar (d) Tariffs v/s Quotas.

Earning:   Approval pending.