La Trobe University
School of Business
TITLE OF PAPER:International Economics
READING TIME:15 minutes
WRITING TIME:3 hours
NUMBER OF PAGES:2 (including this examination cover sheet)
INSTRUCTIONS TO CANDIDATES:
1. This examination accounts for 70% of your final mark.
2. No textbooks and references are allowed.
3. Students are required to attempt any seven (7) out of the ten (10) questions. Examination Paper
Answer Any Seven (7) of the Following Ten (10) Questions.
Each question has the same value of Ten (10) marks. No extra marks will be given if you have answered more than Seven (7) questions.
1. Does exposure to competition with the world leader in a particular industry improve a firm's productivity? Use an example to explain your answer.
2. How does Staffan Linder explain world trade patterns?
3. Is it possible for a low nominal tariff rate to understate the effective rate of protection? What is tariff escalation?
4. In what ways has industrial policy contributed to Japan's economic growth?
5. What are the advantages and disadvantages of forming international joint ventures?
6. Is it possible to trade foreign exchange in the futures market? How does such trading differ from the forward market?
7. Where and how are foreign-currency options traded?
8. What is a pass-through relationship? How does empirical evidence show the effectiveness of a pass-through relationship?
9. What were the main points in the Plaza Agreement of 1985? Was the Plaza Agreement a success?
10. What is the definition of euro-currencies? How does the euro-currency market operate?