Topic 1: Introduction to International Economics

1) What is the relationship of the following variables with trade? Explain!

a.Distance

b.Income

Topic 3: Ricardian Model on Labor Productivity and Comparative Advantage

2) What is Ricardian Model? What are the assumptions of Ricardian Model?

3) Assuming a world with only two countries (country A and country B), producing only 2 products (rice and coffee). Country A is reported to be efficient in producing both products, where the unit labor requirement to produce a kg of rice is 1 hour of labor, while for 1 pack of coffee (500g) is 2 hours of labor. On the other hand, country B needs 8 hours of labor to produce 1 kg of rice and 2 hours of labor to produce 1 pack of coffee (500g). In this case, in your opinion, country A and B should produce and export what product? Or they should not export? Explain!

4) What is the prediction of Ricardian Model with regard to trade in the real world?

5) Is there any empirical evidence to support the prediction of Ricardian Model? Explain!

Topic 4: Specific Factors Model

6) How Specific Factors Model different from the Ricardian Model? Explain briefly.

7) With help of a diagram, explain the impact of decrease in 1 product only. Please provide example (products etc as assumptions) to explain the impact.

8) By providing an example and with the help of a diagram, explain the impact of start allowing free labor migration between 2 countries.

Topic 5: Herkscher Ohlin Model

9) With the help of a diagram, explain Stolper Samuelson Theorem.

10)With the help of diagram, explain Rybzynski theorem.

11) What is the prediction of Herkscher Ohlin Theorem.

12) Is the prediction by Herkscher Ohlin Model supported by any empirical studies? Explain.

Topic 6: Standard Trade Model

13) With the help of a diagram, explain the impact of import biased growth on the welfare of a country?

14)With the help of a diagram, explain the impact of export biased growth on the welfare of a country?

15)With the help of a diagram, explain the impact of export subsidyon terms of trade and welfare of a country? Please provide example to explain your answer.

16) With the help of a diagram, explain the impact of import tariffon terms of trade and welfare of a country? Please provide example to explain your answer.

Topic 7: External economies of scale

17)What are the two different types of external economies of scale? Explain?

18)External economies of scale may exist because of certain reasons. Explain the reasons for External economies of scale to exist

19) Is external economies of scale a guarantee for trading partners to buy your country's product. Why? Explain.

20)Give 10 examples of external economies that exists in different countries of the world (concentration of production for certain industries).