International Economics Questions

1-Draw an appropriate graph to explain what is the static welfare effects of economic integration.

2-(i) Explain what is the meaning of a surplus on the

(a) goods and service balance

(b) current account balance

(ii) Explain what is the meaning of a deficit on the current account balance

3-Show graphically and explain how the following factors affect the Ringgit Malaysia (RM)'s exchange rate:

(i) a rise in Malaysia price level with the foreign price level held constant

(ii) Malaysian government imposes a tariff to import

(iii) rising productivity in Malaysia relative to foreign countries

4-Explain the 3 advantages and disadvantages of fixed exchange and floating exchange systems.