House exam paper International Economics Paper No. 541

Time: 2:00 hours                                                                                                                               Maximum Marks: 25

Attempt any five questions. All questions carry equal marks.

1. Write short notes on any two:                                                                                                   2 ½  + 2 ½

a)     Production Possibility Curve & Opportunity cost

b)     Community Indifference Curve

c)     Terms of Trade

d)     Mercantilism and International Trade

2. What are the main differences between interregional and international trade? Why do nations trade?                                                                                                                                                                3  + 2
3. Critically evaluate the absolute advantage theory of International Trade. What policies Smith advocate on international trade and role of government?                                            3 + 2      
4. Explain the theory of comparative advantage and show how all trading nations could gain from trade. You may use a model of two-countries, two-commodities and one factor to illustrate gains from trade.                                                                                                                    5
5. What is an offer curve? How is it derived? What is its importance in terms of international trade?                                                                                                                        1 +2+2
6. In the absence of trade, a nation is in equilibrium when it reaches the highest indifference curve possible given its production frontier. Explain                                                                             5
7. What is meant by equilibrium relative commodity price? How equilibrium relative commodity price is determined in each nation? How does it define the nation’s comparative advantage?                                                                                                                      2+2 +1
8. Explain the partial equilibrium analysis model of international trade and show how the equilibrium relative price with trade is determined with demand and supply curve?                                                                                                                                                           5
9. Differentiate between the partial equilibrium analysis and general equilibrium analysis of international trade.                                                                                                         5

House exam paper Industrial Economics Paper No. 302

Time: 2:00 hours                                                                                                                               Maximum Marks: 25

Attempt any five questions. All questions carry equal marks.

1. Write short notes on any two:                                                                                                   2 ½  + 2 ½

a)     Differentiate between Industrial Economics & Microeconomic Theory

b)     Chicago School of Thought

c)     Gibrat Process

d)     Gini Coefficient

e)     Lorenz Curve

2. Briefly discuss the various concentration measurement indices. Is it true if the value of alpha is equal to 2 then HHI is equal to Hannah and Kay index?                                                   4  + 1
3. Critically evaluate the deterministic theory of Market concentration. How does it differ from stochastic approach to market concentration?                                                                      3 +2
4. Explain the interactive Structure – Conduct – Performance framework of industrial analysis.                                                                                                                                                          5
5. Outline the evolution of industrial economics from pre - World War II early industrial economics to contemporary industrial economics.                                                                               5
6. Delineate the difference between absolute and inequality measure of market concentration. What are the characteristics of an ideal index of market concentration?                                            3 +2
7. Calculate the value of CR₄ and HHI from the data given below:                                                   2 + 3

S.NO.	Firm	Output (in 'crore Rs.)
1	Tata	750
2	Reliance	150
3	Aircel	100
4	Vodafone	550
5	Airtel	600
6	Rainbow	50
7	Idea	400
8	Infotec	75
9	Telcotek	950
10	Total	5000

Outline the components of basic conditions, market structure and performance with examples. Distinguish between two versions of S-C-P paradigm: with and without feedbacks.               2  +  3                                                                                                                    

Question Paper INDUSTRIAL ECONOMICS 2011

 

Syllabus B.A(H) BUSINESS ECONOMICS Optional Group E: Paper- 541 INTERNATIONAL ECONOMICS V Semester

Optional Group E: Paper- 541

INTERNATIONAL ECONOMICS

UNIT 1 : INTERNATIONAL TRADE THEORY

Basis and the Gains from Trade
Absolute Advantage theory, Law of comparative advantage, Opportunity Cost Theory,
Production Possibility Curve with opportunity costs and relative commodity price, The
basis for and gains from trade under constant costs.
Production Possibility Curve -with increasing costs, Community indifference curve,
equilibrium in isolation, Gains from Trade with increasing costs, Gains from exchange and
specialization.
The Equilibrium Relative Commodity Prices with – Partial Equilibrium Analysis, Offer
curves, The Equilibrium Relative Commodity Prices with – General Equilibrium Analysis,
Relationship between General and Partial Equilibrium Analyses, Terms of trade.
Reading :
Salvatore-International Economics-8th Edition, Chapter 4, Chapter 3 without Appendix
However, Appendix: A4.1, A4.2, A4.3, A4.4 on Derivation of Trade Indifference Curves can
be treated as Optional reading.
UNIT 2 : FACTOR ENDOWMENT AND HECKSCHER OHLIN THEORY

Assumptions of the theory, Interpretation of Heckscher Ohlin Theorem, General equilibrium
framework of Heckscher- Ohlin Theorem, Diagrammatic presentation of the theory, Factor
price equalization and income distribution, Leontief paradox and Factor Reversal
Reading
Salvatore-International Economics-8th Edition [Chapter 5 and its Appendix other than A5.4]
New Trade Theories , Technology, skill, product differentiation
[Sections 6.1, 6.2, 6.3, 6.4A, 6.4B and 6.5, 6.5A, 6.5B of Chapter 6] Salvatore-International
Economics-8th Edition
UNIT 3 : INTERNATIONAL TRADE POLICY

A: Tariff
Definition, Types, Partial equilibrium analysis of a tariff, Effects of a tariff on consumer and
producer surplus, Cost and benefit analysis of tariff, Rate of effective protection.
Reading
[Sections 8.1, 8.2, and 8.3A of chapter 8]
Salvatore-International Economics-8th Edition
B: Non-Tariff Barriers and the New Protectionism
Import Quotas, comparison with tariff, Voluntary Export Restraints, Technical
Administrative and other regulations, International cartels, Dumping, Export Subsidies
Reading
[Sections 9.1, 9.2, 9.2A, 9.2B, 9.3, 9.3A-9.3E of Chapter 9]
Salvatore-International Economics-8th Edition
UNIT 4. NEW TOPICS IN INTERNATIONAL TRADE

A.International Capital Flows, Capital flows under laissez faire, Welfare analysis
B.Extension of Hecksher - Ohlin Trade theory- Many good and many factors extension
C.Immiserising Growth and Transfer Problem
D. Foreign Investment with special reference to Developing countries
Reading
1.Lectures on International Trade-Jagdish Bhagwati, T.N. Srinivasan: MIT Press
2. W.M.Corden Trade Policy and Welfare, Clarendon Oxford
UNIT 5. WORLD TRADE ORGANIZATION

GATT and Trade Liberalization, GATT to WTO, Objectives, functions, basic principles and
areas of operation of WTO, Structure and working of the WTO, an overview of Ministerial
conferences: issues, decisions and controversies, Doha Development Agenda, WTO and
agriculture, Implications of WTO activities for developing countries, WTO and India.
Reading
1. Contemporary Issues in Globalization-An Introduction to Theory and Policy in
India-(OUP) Soumyen Sikdar , Chapters- 6 and 7
2. www.wto.org

Syllabus B.A(H) BUSINESS ECONOMICS INDUSTRIAL ECONOMICS IIIrd Semester

PAPER – 302

INDUSTRIAL ECONOMICS

UNIT 1: STRUCTURE - CONDUCT - PERFORMANCE PARADIGM

The Simple SCP model/framework with and without feedbacks, its critique and modified framework with feedback.

UNIT 2: MARKET CONCENTRATION

Definition of the market, nature and measurement of market concentration, indices of concentration, inequality measures. Theories of measurement: deterministic and stochastic approach.

UNIT 3: BARRIERS TO ENTRY

Concepts to Barriers to Entry by Bains, Stigler. Sources to Barriers to Entry, Limit Pricing Theory, Strategic Entry deterrence, Contestable markets.

UNIT 4: VERTICAL INTEGRATION CONGLOMERATE DIVERSIFICATION & MERGERS

Conglomerate Diversification: Concepts, measures, determinants and consequences of diversification, Mergers, FDI

Vertical Integration: Nature and extent of vertical integration, theories of vertical integration, monopolistic motives for integration

UNIT 5: TECHNICAL PROGRESS & PERFORMENCE

Economics of Research, Market structure and incentive to invent, Concepts by Arrow,

Demsetz, Schumpeter.

Concepts of Profit margins, Productivity and Technical efficiency

Main Reading

1. Industrial Economics by Roger Clarke

Supplementary Readings

1 Stephen Martin, Industrial Economics.

2 Fergusen and Fergusen. Industrial Economics.

3 Giles Burgess, Industrial Organisation.

4 Stephen Martin, Advanced Industrial Economics