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International Economics Ii Question Paper

International Economics Ii

Course:Bachelor Of Economics And Finance

Institution: Kenyatta University question papers

Exam Year:2011

KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS 2010/2011
SECOND SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF ECONOMICS, BACHELOR OF ECONOMICS (FINANCE) AND BACHELOR OF ECONOMICS (STATISTICS)
EAE 308: INTERNATIONAL ECONOMICS II
DATE THURSDAY 31st MARCH 2011 TIME 4.30 – 6.30 P.M
INSTRUCTION:
1. Answer THREE (3) Questions.
2. Question 1 is compulsory
3. Answer any other TWO questions.

1 a) List six major categories of Kenya’s current balance giving an example of an item of transaction recorded on each side of the current account balance per category. (12 marks)
b)What are the six components of the official reserve assets recorded on the official settlements account of the balance of payments. (6 marks)
c) Use a minimum of six equations to explain why the sum of all the components of the balance of payments account should sum up to zero. (12 marks)

2 a) Briefly outline the four main foreign exchange regimes that have been in operation since the 1944 Bretton Woods Agreement. (8 marks)
b) Use a sketch graph to show how a managed float (dirt float) exchange rate regime can be used to capture the good attributes of both the fixed exchange rate regime. (12 marks)

3 a) Using examples, give five criticisms labeled at both the General Agreement on Tariff and Trade (GATT) and World Trade Organisation (WTO) by developing countries. (10 marks)
b) Using Examples, give five criticisms labeled at both the International Monetary Fund (IMF) and World Bank by developing countries like Kenya. (10 marks)

4 a) List and explain each of the five stages of economic integration. (10 marks)
b) Use a sketch to explain trade-creating and trade-diverting welfare effects of economic integration. (10 marks)

International Economics Ii Question Paper

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