BUSINESS ECONOMICS VI – INTERNATIONAL ECONOMICS

Chpt 1. Introduction to International Trade
• Theories of International Trade – Ricardo’s Theory of Comparative Costs and the Heckscher Ohlin Theory
• Terms of Trade : Types and Limitations
• Gains from International Trade : Offer Curves and Reciprocal Demand

Chpt 2. Commercial Policy
• Commercial Trade Policy : Free Trade and Protection – Pros and Cons
• Tariff and Non-Tariff Barriers – Meaning, Types and Effects
• International Economic Integration : Types and Objectives – EU and Brexit, ASEAN

Chpt 3. Balance of Payments and International Economic Organisation
• BOP : Meaning, Structure, Types of Disequilibrium
• Causes and Measures to Correct the Disequilibrium in Balance of Payment
• WTO : Recent Developments in TRIPS, TRIMS and GATS

Chpt 4. Foreign Exchange Market
• Foreign Exchange Market, Meaning, Functions, Determination of Equilibrium Rate of exchange
• Purchasing Power Parity Theory, Spot and Forward Exchange Rates, Arbitrage
• Role of Central Bank in Foreign Exchange Rate Management, Managed Flexible Exchange Rate Systems of India

– Model Question Paper