Question- 1 : What are the economic basis for international trade? Explain in de

Question

Question- 1: What are the economic basis for international trade? Explain in detail the gains from mutual absolute advantage and comparative advantage with an example.                                                                                      

Question- 2: Critically explain the linkages between macroeconomic factors and stock market of a country. Also highlight the role of inflation in affecting the UAE stock market.

Question- 3: It is widely believed in the literature that oil prices can considerably influence the capital markets in general and stock markets in particular. Taking the case of oil importing countries, explain how and why the declining oil prices affect their stock markets?

Question- 4: Explain any five key factors affecting the industrial production in general. Do these factors matter in case of UAE as well? Justify your argument.                                     

Question- 5: Critically evaluate the role of technological advancements in the industrial growth and development of a country.

Explanation / Answer

Basis of international trade is that, a company should concentrate more on producing a good in which it has more comparitive advantage than the other countries.

A colder country can produce more apples and a hotter country can produce more dates or dry fruits. This is the example of absolute advantage.

Japan can produce cars more efficiently than wheat. It means that Japan has comparitive advantage in producing cars.

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