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Question 1:
Participants in a recent radio discussion on the WTO were full of ideas. The WTO could do this, the WTO should do that, they said. One of them finally interjected: "Wait a minute. The WTO is a table. People sit round the table and negotiate. What do you think the table to do?" In light of this argument, explain the principles of the trading system of WTO.
Question 2:
"Country-based theories of international trade describe inter industry trade whereas firm-based theories of international trade explain intra industry trade." Discuss
Question 3:
a. Describe the determination of foreign exchange rate in a flexible exchange regime
b. What are the factors that may cause a shift in i. The demand for Pounds vis-à-vis the Dollar ii. The supply of Pounds Vis-à-vis the Dollar
Question 4:
a. What are the differences and similarities between futures and forwards
b. Using illustrative examples, Describe the mechanism of an interest rate swap
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