INTERNATIONAL BUSINESS

What is the importance of Balance of Payments What are its limitations

1. How does the home country government restrict international business?

2. In the recent past, Indian government has liberalized the norms related to Foreign Direct Investment in its efforts to attract FDI. Briefly explain why companies undertake Foreign Direct Investment?

3. What are the basic reasons for origin of trade? Distinguish between internal trade and international trade?

4. Critically examine the Ricardian comparative cost advantage theory of international trade? To what extent is this theory supported by empirical evidence?

5. Discuss Ohlin’s theory of International Trade.

6. On what assumptions is the Heckscher-Ohlin theory of international trade based? Explain the relative factor abundance and relative factor intensity?

7. Examine critically the Heckscher-Ohlin theory of international trade. Is the theory supported by empirical evidence?

8. What is the importance of Balance of Payments? What are its limitations?

9. Write short note on Concepts of Balance of Payments?

10. Give an account of India’s Foreign Trade policy in the last Decade?

11. What do you mean by Purchasing Power Parity Theory? Discuss the limitation of Purchasing Power Parity Theory?

12. Distinguish between Spot and Forward Exchange Rates?

13. There is a growing concern about the widening trade deficit and the composition of capital inflows. What is the significance of various deficits in the balance of payments statement?

14. What are the purposes of the International Monetary Fund? Explain the mechanism and organization of IMF?

15. How far has the IMF helped the establishment of a multilateral system of payment in respect of current transaction and the elimination of foreign exchange restrictions?

What is the importance of Balance of Payments What are its limitations

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