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