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 ASSIGNMENT(S) BORROWED OR STOLEN FROM
OTHER(S) AS ONE’S OWN WILL BE PENALIZED AS DEFINED IN
“AIOU PLAGIARISM POLICY”.

Course: International Economics-I (4673) Semester: Spring, 2023

Level: MSc Credit Hours: 03

Please read the following instructions for writing your assignments. (AD, BS, BEd,
MA/MSc, MEd) (ODL Mode).
1. All questions are compulsory and carry equal marks but within a question the
marks are distributed according to its requirements.
2. Read the question carefully and then answer it according to the requirements of the
questions.
3. Avoid irrelevant discussion/information and reproducing from books, study guide
or allied material.
4. Handwritten scanned assignments are not acceptable.
5. Upload your typed (in Word or PDF format) assignments on or before the due date.
6. Your own analysis and synthesis will be appreciated.
7. Late assignments can’t be uploaded at LMS.
8. The students who attempt their assignments in Urdu/Arabic may upload a scanned
copy of their handwritten assignments (in PDF format) on University LMS. The
size of the file should not exceed 5MP.

Total Marks: 100 Pass Marks: 40

ASSIGNMENT No. 1
(Units 1-5)

Q.1 International markets differ from each other with regard to legal provisions,
sanitary and health requirements, language, preferences, usages, custom, culture
and even with regard to the usage of wights and measure. Substantiate the
statement. (20)
Q.2 Can you compare the Mercantilist’s view about international trade with that of
modern theory? In case of either yes or know, explain the reason in detail. (20)

Q.3 Critically analyze the demand determinants.i.e. Linder model of international trade.

1
 (20)
Q.4 Why the trade gap between the developed and developing countries is widening.
Also identify its consequences. (20)
Q.5 What is meant by nominal and effective tariff protection? Explain in detail. (20)

Total Marks: 100 Pass Marks: 40

ASSIGNMENT No. 2
(Units 6-9)

Q.1 Given the costs involved with restricted trade, why is the government continue to
impose new trade measures and resist the dismantling of existing trade barriers?
(20)

Q.2 Distinguish between the portfolio investment and foreign direct investment. Also
explain which form is more beneficial from the point of view of developing
countries. (20)

Q.3 Do you agree with the view that the MNEs generally cause in improving the
economic welfare of the world as a whole. (20)

Q.4 If trade diversion is greater than trade creation for a country joining custom union,
is it necessarily the case that economic well-being of the nation will be reduced,
particularly in the long-run? (20)

Q.5 Write a short note on each of the following: (20)

a. MNE’s an agent of language transfer.
b. European free trade association.
c. Welfare effect of custom union.
d. Reasons of capital movement across nations.