ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD

(Department of Economics)
WARNING
1. PLAGIARISM OR HIRING OF GHOST WRITER(S) FOR SOLVING
THE ASSIGNMENT(S) WILL DEBAR THE STUDENT FROM AWARD
OF DEGREE/CERTIFICATE, IF FOUND AT ANY STAGE.
2. SUBMITTING ASSIGNMENTS BORROWED OR STOLEN FROM
OTHER(S) AS ONE’S OWN WILL BE PENALIZED AS DEFINED IN
“AIOU PLAGIARISM POLICY”.

ASSIGNMENT No. 1
(Units 1–5)
Course: International Trade: Theory and Policy (2705) Semester: Spring, 2010
Level: M. Phil. Economics Total Marks: 100
Q.1 Define international economics. Also discuss its subject matter in detail. (20)
Q.2 Compare and contrast the comparative theory with that of the absolute advantage
theory of international trade. (20)
Q.3 What is factor endowment theory? Also explain that how countries producing and
trading under the above theory achieve equilibrium. (20)
Q.4 Discuss in detail that how the world pattern of trade alters with the application of
the product life cycle theory of international trade. (20)
Q.5 Write short notes on the following: (20)
a) Merchantilism
b) Leontif Paradox

ASSIGNMENT No. 2
(Units 6–9)
Q.1 Differentiate between tariff and non tariff barriers. Also compare and contrast the
economic effects of tariffs with that of the non tariff barriers. (20)
Q.2 Why Multinational corporation intend to invest abroad and where? (20)
Q.3 What is FDI? How it takes place? Discuss with reference to the eclectic theory
developed by Dunning. (20)
Q.4 If Turkey becomes the member of European Union, identify and analyse the
possible trade implication for Pakistan. (20)
Q.5 Discuss the causes of the failure of GATT and the emergence of WTO. Also discuss its
trade implications for a developing country like Pakistan. (20)