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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: 03 Pass Marks: 40

ASSIGNMENT No. 1

(Units 1–5)

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

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

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

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

Q. 5 Under 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. 1 Can you identify major economic problems relating to trade being faced by developing countries as a group with reference to Pakistan? (20)

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

Q. 3 What 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. 4 Explain various channels of spreading inflation among the counties. (20)

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

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