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International Economics I Question Paper

International Economics I 

Course:Bachelor Of Arts In Economics

Institution: Kenyatta University question papers

Exam Year:2009



KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS 2009/2010
FIRST SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF
ARTS

AEC 306: INTERNATIONAL ECONOMICS I

DATE: Thursday
24th December 2009
TIME: 11.00am ? 1.00pm

INSTRUCTIONS:
ANSWER QUESTION ONE AND ANY OTHER TWO QUESTIONS.
QUESTION ONE (COMPULSORY)

Using an appropriate diagram illustrate the concept of comparative advantage and the
benefits from international Trade in the Hecksher-Ohlin Model of Trade.











[30marks]
QUESTION TWO
How would the imposition of a tariff be expected to affect the importation and
consumption of an imported commodity?




[20marks]

QUESTION THREE
Carefully explain and illustrate how the situation that Bhagwat referred to as
?immiserising growth? could arise in the theory of international Trade.
[20marks]

QUESTION FOUR
Using a relevant diagram show that the practice of dumping favours foreign consumers
over
domestic
consumers.
[20marks]
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