UNIVERSITY OF THE FREE STATE. QWA.QWA CAMPUS. fEINT3715 DEPARTMENT: ECONOMICS. (CONTACT NUMBER: 058-718506 EXAMINATION: Main Mid-year 2015 PAPEI MODERATOR(EY, MODERATOR(S): Me. 1 van der Merwe TIME: 3 wurthours MARKS: 100 WEST @) the causal relationship bewwcen internation trade, specialisation and welfare. Also explain whether, ona global Possible to simultaneously lower imports and increase exports, ® lies of wine produced per hour ‘Number af Bicveles produced per hour — 4) Point out the respective absolute advantage of each county. @) 'b)_ Whats the opportunity cost of wine in terms of bieyeles for France and South Aries? “ ©) Show and explain the country that has a comparative vantage in wine, (2) 4) Pe 1nd explain any two as at are different between the Heckscher-Ohlin theory and Ricard’s trade theory o 1.3. Explain why an improvement ina eount regarded as advantageous from a welfare p QUESTION? 2.1 When does a county's terms ‘which this can happen. and aso explain hoy balance of payments deficit 2.2 What i preferences wer theoey” Provide athe reasons given by the weakness of Linders theory? 7 2.3 How do you explain immiserising growth in terms ofthe gains from trade? Comnare and analyse this paradox. Also provide a 2rophi im oir _rowth “ 2.4 Tarif havea more nessE10 6 2012 os pur wide coma 048 en prs ay resis0 pasou fous © FROTISHIO