UNIVERSITY OF THE FREESTATE QWA-QWA CAMPUS feInT3715) DEPARTMENT: ECONOMICS CONTACT NUMBER: 058-718506 EXAMINATION: Main Mid-year 2016 PAPER ASSESSO! Mr. C, Mudzingii MODERATOR(S): Mr. van der Merwe TIME: 3 hours UESTION 1 «40 1.1 Explain the follow Lid Fact temational economics terms: ie equalisation @ exchange market ® improvement is achieved 132 Expl led diagrams discus the demand reversal and factor intensity reversal explanations ofthe Leotif paradox. ® WESTON? es) 2.1 What is preference similarity hypothesis in relation to Linders spillover theory? Provide other easons given by Linder as drivers of tae, What i he weakness of Linders theory? 2.2 Define “Technological gap’. Point out any two Factors that affect he technological pap. ° 2.3.A Monopoly tends to dump a commodity in anather market, hil inthe high priced ‘market where it produces the commodity, sales decrease, Explain this in full by means of a graph and how net profit is determined o 2.5 “The Department of Trade and Industry has denied it wo bullied by the United Sates (03) into striking a deal under the African Growth and Opportunity Act goo) for ‘he next 10.years. The deal wil see South Africa accep chicken, mea! ond pork from the US in exchange for duy fre imports otha country (Dp. Trade & Industry) of South Afica USA. Also shove “ 2.5.1 Graphically itustrate and explain the impact onthe terms of ‘when an optimum tari is imposed on pouley the impact ofao {o1)od apmous os 01 2qUdUiNY ZeO1y S588 PIAOM me yg NHL 3419p 0424 0) 39 ov ©) -pury weary nos om ") 24 weds pe no 0g wS!APewiauM>AKD EDLY KOS le ROS su CE © wowesony ou IgEWEISNSayF Uo UoyroAip open ‘ue owas apes jo 949 pougisoD a4 Eda “oun sus (8) __(wouanpoid sy ARojouysa1 nou yo Kianansip $3) ssBusypyorFojoupo op npond ut 2se20u post odu en H200099 94:94 2 «en ENOIESINO