MEC-107 Archives - IGNOU CORNER

MEC-107: INTERNATIONAL TRADE AND FINANCE – All Assignment Answers 2024-25

IGNOU MEC-107 Assignment 2024-25International Trade and Finance – Answer Links Below are the direct links to all the answers for the MEC-107 TMA (Tutor Marked Assignment) for the academic year 2024-25. Critically discuss the Ricardian theory of Comparative Advantage. How is it different from Adam Smith’s theory of Absolute Advantage? Explain the various concepts of […]

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Critically examine the relative merits and demerits of the fixed and flexible exchange rates.

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Introduction The choice between a fixed exchange rate and a flexible (floating) exchange rate system is one of the fundamental decisions in macroeconomic policy. Both systems have their respective advantages and disadvantages, and their effectiveness depends on the country’s economic structure, development level, and exposure to global markets. Fixed Exchange Rate System In a fixed

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Discuss the various instruments of trade protection. Differentiate between quotas and tariffs.

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Introduction Trade protection involves the use of policy instruments to restrict imports and protect domestic industries from foreign competition. While free trade promotes efficiency and global integration, trade protection is often used to support infant industries, preserve employment, or respond to unfair trade practices. Two of the most commonly used tools are tariffs and quotas.

Discuss the various instruments of trade protection. Differentiate between quotas and tariffs. Read More »

Describe the evolution of international monetary system. Examine the trends in the international monetary and financial systems.

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Introduction The international monetary system refers to the global framework of rules and institutions that govern exchange rates, international payments, and capital flows. It has evolved over time to adapt to changes in global economic dynamics. Understanding its evolution and current trends helps in analyzing the behavior of currencies, capital markets, and international trade. Evolution

Describe the evolution of international monetary system. Examine the trends in the international monetary and financial systems. Read More »

What are the various forms of economic integration? How is trade diversion different from trade creation? Elucidate.

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Introduction Economic integration refers to the unification of economic policies and markets among different countries through the reduction or elimination of trade barriers. It plays a vital role in promoting regional cooperation and increasing trade and investment among member countries. Two key outcomes of economic integration are trade creation and trade diversion, which affect the

What are the various forms of economic integration? How is trade diversion different from trade creation? Elucidate. Read More »

Explain multilateral framework of international trade. Explain its main features.

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Introduction International trade can be conducted through bilateral, regional, or multilateral frameworks. The multilateral framework is a cooperative arrangement among multiple countries to promote free and fair trade under a set of agreed rules. Institutions like the World Trade Organization (WTO) embody this framework, aiming to reduce trade barriers and ensure non-discriminatory treatment among trading

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Explain the various concepts of terms of trade. Critically examine the behavior of terms of trade as explained by Prebisch.

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Introduction The concept of terms of trade (ToT) is essential in international economics, representing the rate at which one country’s goods are exchanged for another country’s goods. It helps assess a country’s trading strength and its welfare from international trade. Various forms of ToT exist, and many economists, including Raul Prebisch, have analyzed their implications,

Explain the various concepts of terms of trade. Critically examine the behavior of terms of trade as explained by Prebisch. Read More »

Critically discuss the Ricardian theory of Comparative Advantage. How is it different from Adam Smith’s theory of Absolute Advantage?

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Introduction International trade has long been analyzed through classical economic theories, and two of the most influential among them are the Ricardian theory of Comparative Advantage and Adam Smith’s theory of Absolute Advantage. These theories explain the reasons behind trade between countries and how they can benefit from specialization and exchange. Although both support free

Critically discuss the Ricardian theory of Comparative Advantage. How is it different from Adam Smith’s theory of Absolute Advantage? Read More »