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(a) Explain the following terms as used in international finance: (i) Floating rate notes (FRNs). (1 mark) (ii) Forfaiting. (1 mark) (iii) Crowd funding.

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(a) Explain the following terms as used in international finance: (i) Floating rate notes (FRNs). (1 mark) (ii) Forfaiting. (1 mark) (iii) Crowd funding. (1 mark) (iv) Green bond. (1 mark) (b) One of the objective of the East African Community (EAC) bloc is to achieve economic integration among the member states. In light of the above statement, describe five reasons why EAC is yet to achieve the above objective. (5 marks) (c) Discuss three criticisms of the Heckscher-Ohlim Theory of international trade. (3 marks) (d) The following information relates to the Wodu Republic for the financial year ended 31 December 2018: W S "billion" Exports of merchandise Exports of services 3,344 1,491 Income receipts 2,454 Imports of merchandise 5,901 Imports of services 1,134 Income payments 2,211 Net transfers by Wodu Republic 336 Required: (i) A current account for Wodu Republic for the year ended 31 December 2018. (4 marks) (ii) Propose four measures that Wodu Republic could take to address the balance of payment (BOP) deficit obtained in (d) (i) above. (4 marks)

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