Free Trade V/s Protecxtionism

Tariffs- meaning and types

partial equilibrium analysis of a tariff

Rate of effective Protection

General Equilibrium effects of tariffs in a small nation - The Stopler Samuelson Theorem

General Equilibrium effects of tariff in a large nation - The optimum tariff

Import Quotas - Meaning , Types and effects

Import tariff v/s Import Quota

other non tariff barriers - Voluntary Export Restraints; technical, administrative and other regulations; iinternational cartels; dumping; Export subsidies

Strategic trade and international policies

•    Forms of economic integration
•    Trade creating customs union
•     Trade diverting Custom Union
•    Static and Dynamic Effects of custom Union

European Union, NAFTA, EFTA

Components of balance of payments
 Balance of payments disequilibrium - meaning and causes
Measures to correct disequilibrium in the balance of payment
Foreign trade multiplier

Effects of fiscal & monetary policies on external balance

 Devaluation – elasticities approach, Marshall-Lerner condition, income absorption approach

The J – curve effect

•    Functions of foreign exchange market
•    Transactions in foreign exchange market – spot & forward exchanges, futures, options, swap operation, arbitrage, foreign exchange risk, hedging and speculation.
•    Determination of exchange rates – PPP theory & BOP theory
•    Exchange rate system – fixed exchange rates, flexible exchange rates