Answer any two questions from this section

1. Differentiate between Adam Smith and Ricardo's Theory of International Trade.

2. Explain the reasons for trade protectionism. Do you think the global economy has gone back to protectionism

3. What are the issues related to current account sustainability? Do you think India's current account is sustainable under the present circumstances

4. What do you understand by the terms of trade? What are its various terms? Explain and Distinguish between:

Single factorial terms of trade

Double factorial terms of trade

Answer any five questions from this section

5. What do you mean by surplus or deficit in balance of payments? What purpose autonomous and accommodating flows do serve in balance of payments

6. Do countries benefit from trade when there is monopoly in the domestic market?

7. What are the reasons behind the growing importance of services in trade

8. Elaborate important export promotion measures including major innovative schemes launched in recent years.

9. Examine the impact of capital mobility an expansionary monetary policy.

10. Discuss briefly the major components of reforms in India's trade policy since 1991.

11. Critically evaluate the role played by developing countries under GATT.