International Economics

Theories of International Trade 

• Need and Importance of International Trade
• Free trade and protectionFree trade and protection
• Mercantilism
• Absolute Cost Advantage theory
• Comparative Cost Advantage theory
• Theory of Reciprocaldemand
• Terms of trade-Meaning, Types and Determination.

The Balance of Payments 

• Concept and components of balance of trade and balance of payments. 
• Disequilibrium and measures to correct balance of payments. 
• Foreign trade of India and foreign trade policy of India. 

Foreign Exchange and Exchange rate 

Meaning of foreign exchange rate and types- fixed, pegged, flexible, hybrid. Foreign exchange rate under gold standard, Purchasing power parity theory and modern theory of exchange rate, methods of controlling exchange rate- Unilateral and bilateral. 

Financial Institutions 

International monetary system: Bretton woods system and IMF, Objectives, Working Quota System, SDR, The World bank group- IBRD,IDA,IFC,MIGA,ICSID,ADB- Objectives, working and functions