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ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD
(Department of Economics)

WARNING
1. PLAGIARISM OR HIRING OF GHOST WRITER(S) FOR SOLVING THE ASSIGNMENT(S) WILL DEBAR THE STUDENT FROM AWARD OF DEGREE/CERTIFICATE, IF FOUND AT ANY STAGE. 2. SUBMITTING ASSIGNMENTS BORROWED OR STOLEN FROM OTHER(S) AS ONE’S OWN WILL BE PENALIZED AS DEFINED IN “AIOU PLAGIARISM POLICY”.

Course: International Economics–II (4674)Semester: Autumn, 2012 Level: M. Sc Economics Total Marks: 100
Credit Hours: 03Pass Marks: 40

ASSIGNMENT No. 1

(Units 1–5)

Q. 1Discuss and evaluate the major arguments in favour of freely fluctuating exchange rates.(20)

Q. 2Describe the main functions of international capital markets. How does they differ from that of domestic ones?(20)

Q. 3Explain with the help of a diagram that how the exchange rate is determined in the foreign market?(20)

Q. 4What is meant by classification of balance of payments. Explain with example.(20)

Q. 5Under what terms and conditions the underdeveloped countries should seek and accept foreign aid in future?(20)

ASSIGNMENT No. 2

Total Marks: 100 (Units 6–9) Pass Marks: 40

Q. 1Can you identify major economic problems relating to trade being faced by developing countries as a group with reference to Pakistan?(20)

Q. 2Define a commodity agreement. Also discuss its major mechanisms that can be used to implement the pricing scheme of a commodity agreement.(20)

Q. 3What is meant by internal and external balances? Also explain with the help of diagram how a persistent BOP problem is resolved and a general equilibrium is achieved?(20)

Q. 4Explain various channels of spreading inflation among the counties.(20)

Q. 5Can you identify major economic problems relating to trade being faced by developing countries as a group with reference to Pakistan?(20)
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