TYBCom Sem 6 2019-2020 Business Economics VI Question Paper PDF 2026 - Mumbai University | munotes

Questions asked in this paper

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1. Q1 A) Select the correct answers and rewrite the statements (Any 10): 10 marks
2. Q1 Comparative cost theory of International trade was developed by
   • c) Heckscher and Ohlin d) Alfred Marshall
3. Q2 When the export price of a country is greater than its import price, terms of trade
   • c) Balanced d) None of the above
4. Q3 Reciprocal demand is expressed in terms of
   • c) Supply curve d) None of the above Which of the following is an argument for free trade?
   • c) Helps diversification of industries d) Promotes efficient allocation of
5. Q5 Which of the following is a Non-Tariff barrier?
   • c) Administrative barriers d) All of the above
6. Q6 ASEAN was formed in
7. Q7 Foreign direct investment is included in
8. Q8 Which of the following is not the cause of the deficit in the balance of payments?
   • a) Capital inflows b) Increase in imports
   • c) Globalisation d) Fall in exports
9. Q9 Intellectual property rights take the following forms
   • a) Patents b) Trade marks
   • c) Geographical indications d) All of the above
10. Q10 refers to simultaneously buying a currency in one market and selling it in another market to make a profit by taking advantage of the differences in the exchange rate in the two markets
    • c) Arbitrage d) None of the above
11. Q11 The purchasing power parity theory was introduced by
12. Q12 In order to prevent appreciation of the rupee against US$, the RBI will
13. Q1 B) State whether the following statements are True or False. (Any 10) 10 marks
14. Q1 Factor abundance results in low factor cost
15. Q2 International trade increases welfare of only exporting countries
16. Q3 Commodity terms of trade do not consider the quality of goods
17. Q4 Free trade is not conducive to growth of world economy
18. Q5 Import quotas are more effective than tariffs
19. Q7 Balance of payments records only the payments made by a country to the rest of the
20. Q8 Devaluation of domestic currency makes exports cheaper and imports costlier
21. Q9 India is not a founder member of WTO
22. Q10 Spot exchange rate is the current exchange rate between the two currencies
23. Q11 Unilateral receipts generates demand for foreign exchange
24. Q12 Sterilized intervention is done by the RBI through Open market operations Attempt any two of the following. (15)
    • a) According to Ricardo," the essence for international trade is not the absolute difference in cost but comparative difference in cost". Discuss
    • b) Discuss in detail about the Net barter terms of trade and the Gross barter terms of trade
    • c) Analyze the different gains from international trade Attempt any two of the following. (15)
    • a) Discuss the arguments in favour of free trade policy
    • b) Explain economic effects of tariffs with suitable diagram
    • c) State and explain different types of international economic integration
25. Q4 Attempt any two of the following. 15 marks
    • a) Explain the structure of Balance of Payments
    • b) Discuss the various causes of disequilibrium in the balance of payments
    • c) Write a detailed note on WTO Agreements on GATS
26. Q5 Attempt any two of the following. 15 marks
    • a) Distinguish between Spot and Forward exchange rates
    • b) Discuss the absolute and relative versions of the purchasing power parity theory
    • c) Outline the role of Central bank in Foreign exchange rate management Write short notes on any 4 of the following. (20)
    • a. Limitations of Heckscher-Ohlin theory
    • b. Reciprocal demand
    • d. Impact of devaluation
    • e. Functions of foreign exchange market
27. Q3 AT SAH

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