BCom TY BCom Sem 6 2022 2023 Apr 2023 BUSINESS ECONOMICS VI Question Paper - Mumbai University | munotes

Questions asked in this paper

• 2. Figures to the right indicate full marks

1. Q1 A. Choose the correct answer and rewrite the statement (Any Ten) 10 marks
   • 1. International trade will not take place difference
   • a) comparative b) absolute
   • c) equal d) average
   • 2. If USA < India, India is country
   • 3. Reciprocal demand is expressed in terms of
   • 4. The main objective of trade barriers is
   • a) To increase employment b) To reduce unnecessary imports
   • c) To increase exports d) To increase imports
   • 5. Imposition of tariff, raises domestic prices causing fall in consumption of domestic goods iS effect of tariffs
   • 6. Brexit is the name given to the departure of from the European Union
   • a) Belgium b) Britain
   • 7. Current account balance records all the receipts and payments for
   • c) Both visible and invisible items d) Loans taken
   • 8. Devaluation is --------------- adjustment in value of the currency of the country
   • a) Downward b) Upward
   • c) Vertical d) Neutral
   • 9. WTO replaced ------- in 1995
   • a) TRIPS b) TRIMs
   • c) GATT d) GATs
   • 10. As per Purchasing Power Parity theory exchange rate is determined by comparing
   • a) Prices b) Import
   • 11. Spot exchange rate is
   • 12. Hedging function is about covering risk through
2. Q1 B) State whether the following statements are TRUE or FALSE (Any 10) 10 marks
   • 1. According to modern theory, there is no need for a separate theory of international
   • 2. Jacob Viner developed the concept of Income terms of trade
   • 3. Equilibrium terms of trade are determined through offer curves
   • 4. Free trade leads to an increase in cost and inefficiency
   • 5. Specific duties are imposed on a fixed percentage of the value of imported goods
   • 6. India is a dialog partner of ASEAN
   • 7. Medium-term loans of a country are denoted in the Current account of BOP
   • 8. Exchange control is restricting the use of foreign currency
   • 9. TRIPs agreement covers intellectual property in case of geographical Identities
   • 10. Countries in the world are following a fixed exchange rate system
   • 11. Speculation is opposite to hedging
   • 12. The aim of RBI’s intervention in the foreign exchange market is to reduce excess
3. Q2 Answer any two of the following. 15 marks
   • A. Explain Ricardian Comparative Cost Difference Theory of International Trade
   • B. Discuss different concepts of Terms of Trade
   • C. Describe various types of gains from trade
4. Q3 Answer any two of the following. 15 marks
   • A. Discuss the arguments in favour of and against free trade policy
   • B. Describe different types of tariffs
   • C. Explain the objectives and achievements of the European Union
5. Q4 Answer any two of the following. 15 marks
   • A. Explain the concept and structure of balance of payments
   • B. Analyze different measures to correct disequilibrium in balance of payments
   • C. Briefly explain the WTO’s TRIPs and TRIMs agreements
6. Q5 Answer any two of the following. 15 marks
   • A. Explain how the equilibrium rate of exchange is determined
   • B. Discuss the purchasing power parity theory of exchange rate determination
   • C. Explain the role of central bank in foreign exchange management
7. Q6 Write short notes on any four of the following 20 marks
   • A. Offer Curves
   • B. Types of Economic integration
   • C. Effects of Tariffs
   • D. Functions of foreign exchange market
   • E. Spot and Forward exchange rate
   • F. Types of disequilibrium in balance of payment
   • 2. USA < — India,
   • H) AA
   • H) FET
   • 3) (TRIPS) (TRIMS )
   • 22. (Hedging)
   • H) ( TRIPS)
   • a. at

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