1. What is meant by economic integration? a preferential trade arrangement? a free trade area? A customs union? a common market? an economic union? Give an example of each.

2. What is meant by trade creation?

What static welfare effects will a trade-creating customs union have on member nations and on the rest of the world? How do these static welfare effects arise? How are they measured?

3. What is meant by trade diversion? What static welfare effects will a trade-diverting customs union have on member nations and on the rest of the world? How do these static welfare effects arise? How are they measured?

4. What are the major problems facing developing countries today? What are their causes?

5. Why do developing nations want to industrialize? What is meant by import substitution? By export-oriented policies? What are the advantages and disadvantages of each as a method of industrialization for developing nations?

6. Differentiate between fixed, flexible and managed floating exchange rates.

7. Discuss the advantages and disadvantages of flexible exchange rates.

8. Discuss Balance of Payments. Critically discuss the adverse balance of payments in Pakistan and suggest strategies to address these problems.

9. Take balance of payments statement of Pakistan and analysis it with reference to lecture.

10. Discuss the impact of current recession of world on Pakistan's economy. How Pakistan can get benefit from this crisis.