What are the economic basis for international trade

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January 11th, 2018

INSTRUCTIONS TO THE CANDIDATES:In mentioned cases provide a neat diagram to explain your answer. Makesure to label axes properly.Question- 1: What are the economic basis for international trade? Explain in detailthe gains from mutual absolute advantage and comparative advantage with anexample.Question- 2: Critically explain the linkages between macroeconomic factors andstock market of a country. Also highlight the role of inflation in affecting the UAEstock market.Question- 3: It is widely believed in the literature that oil prices can considerablyinfluence the capital markets in general and stock markets in particular. Taking thecase of oil importing countries, explain how and why the declining oil prices affecttheir stock markets?Question- 4: Explain any five key factors affecting the industrial production ingeneral. Do these factors matter in case of UAE as well? Justify your argument.Question-5: Critically evaluate the role of technological advancements in theindustrial growth and development of a country.Page | 1

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