Long answer questions
(a) Discuss the advantages and disadvantages for developing countries of signing (i) bilateral trade agreements and (ii) regional trade agreements.
(b) Choose a specific regional trade agreement and assess the impact it has had on the member countries.
(a) Explain what is meant by the 'terms of trade' and describe how a country's terms of trade index, is calculated.
(b) Using specific examples, discuss the effect of changes in the world prices of primary commodities on a developing country's terms of trade.
Using examples for illustrative purposes, evaluate the arguments for and against import substitution and export promotion, as part of a developing country's trade policy.