FM-BINUS-AA-FPU-78/V2R0

BINUS University

Academic Career: Class Program:

Undergraduate / Master / Doctoral *) International/Regular/Smart Program/Global
Class*)

 Mid Exam  Final Exam Term : Odd/Even/Short *)

 Short Term Exam  Others Exam :
_____________

 Kemanggisan  Alam Sutera  Bekasi Academic Year :

 Senayan  Bandung  Malang 2021 / 2022

Faculty / Dept. : BBS UP / IBM Deadline Day/Date : Thursday / 25 Nov 2021

Time : 17.00
Code - Course : BUSS 7017005/BUSS 7005 - Class : LA24, LB24, LC24,
International Trade LD24, LE24, LF24,
LG24
Lecturer : Team Exam Type : Online

) Strikethrough the unnecessary items
The penalty for CHEATING is DROP OUT!!!

QUESTION #1: LO 1 : Explain the principal and supporting theories in international

trade

A century ago, most British imports came from relatively distant locations: North
America, Latin America and Asia. Today most British imports come from other
European countries. How does this fit in with the changing types of goods that make
up world trade? ( LO 1) (20%)

QUESTION #2 : LO 1 : Explain the principal and supporting theories in international

trade

France and the United Kingdom have very similar trading patterns. Both trades
considerably more with the United States than with the European Union (EU), even
though they are EU members and are closer to the EU common market than the
American market. Explain this anomaly using the gravity model!(LO 1) (20%)

Verified by,

[Johanes Ronaldy Polla] (D5008) and sent to Department/Program on 02 11, 2021

Page 1 of 2
 FM-BINUS-AA-FPU-78/V2R0
QUESTION #3 :
LO 1 : Explain the principal and supporting theories in international trade
LO 2 : Analyze theoretical models of international trade in analyzing real-world trade
problems through qualitative and quantitative analysis
LO 3 : Analyze theoretical models of international trade in implementing trade policies
through qualitative and quantitative analysis

Home has 2000 units of labor available. It can produce two goods, computers, and
shoes. The unit labor requirement in computer production is 4, while in shoe
production it is 5.
a. Graph Home’s production possibility frontier! (10 points)
b. What is the opportunity cost of toys in terms of shoes? (10 points)
c. In the absence of trade, what would be the price of computers in terms of shoes?
Why? (10 points)
(LO 1, LO 2, LO 3) (30%)

QUESTION #4:
LO 1 : Explain the principal and supporting theories in international trade
LO 2 : Analyze theoretical models of international trade in analyzing real-world trade
problems through qualitative and quantitative analysis
LO 3 : Analyze theoretical models of international trade in implementing trade policies
through

Suppose Upin and Ipin produce two products – Fried Chicken and Shirts. Upin
produces 20 units of fried chicken or 8 shirts per day and Ipin produces 12 units of
fried chicken or 4 shirts. Assuming they can devote time to making either Fried
Chicken or Shirts:
a. Draw the production possibility curve for each individual! (10 points)
b. Who enjoys the absolute advantage of producing both Fried Chicken and Shirts?
(10 points)
c. Who has the higher opportunity cost of making shirts? (10 points)

(LO 1, LO 2, LO 3) (30%)

Verified by,

[Johanes Ronaldy Polla] (D5008) and sent to Department/Program on 02 11, 2021

Page 2 of 2