I! Page tof 2 ) UFS QWA-QWA CAMPUS 1 uv UNIVERSITY OF THE FREE STATE [EINT3715) DEPARTMENT OF ECONOMICS CONTACT NUMBER: 051 401 3271 EXAMINATION: MAIN MID-YEAR 2017 PAPER | ASSESSORS): Dr A, van Niekerk and Mr. C, Mudzingir MARKS: 100 Instruction: This paper consist of 3 questions on 2 pages. Answer al the quest QUESTION 1 6 1 Explain each the following intemational economics terms: ‘Terms of trade 1.2 Pre-trade price ratio Q 1.3 Fully explain what it means when a country gains th 14 Make use of rate of! ratio between the mar ion (MRS) 9 the marginal lustrate and explain equilibrium in a closed economy. (8) nd watches. South Aiea prefer es. Explain and ga fo explain why 2) QUESTION? on 2.1 ts the Leontef paradox a valid critique ofthe Heckscher-Ohlin theory of international trade? Explain and use graphical illustrations where necessary ® factor inventories ~in terms of international trade = willbe reflected on an Offer curve ® and Foreign direct ® 2.4 Illustrate and explain the diferent effects of q ‘one country is a developed (advanced) economy, on trade between two counties. Suppose onomy and the ether country is a developing QUESTIONS as development