Trade Theory and Trade Policy - International Economics - Economics Previous Year Questions

In a two country model, an increase in foreign country’s national income generally leads to:

The demand curve for tea in Borduria is given by \( D(P) = 40 - 2P \) and the domestic supply curve of tea in Borduria is given by \( S(P) = \frac{2}{3} P \) Here \( D(P) \) denotes quantity demanded when price is \( P \) and \( S(P) \) is quantity supplied by domestic producers at price \( P \). Tea is traded in a competitive world market and imported into Borduria at a price of 9 per unit. Initially there was no restriction on trade. However, as a result of lobbying by the domestic suppliers, the Bordurian government imposes a tariff of 3 per unit on each unit imported. As a result of the tariff, import of tea decreased by how many units?

Consider two countries, India and Bangladesh, and two goods, Glass Bottle and Ceramic Plate, with labour requirements of production for a unit of each good given below: Which of the following options is/are correct?

Match Column I with Column II

Column I	Column II
P Infant Industrialization	1 When a firm charges lower prices in the export market than in the domestic market
Q High Performing Asian Economy	2 Industrialized not via import substitution but via export promotion of manufactured goods
R National Procurement	3 New industries need a temporary period of protection from foreign companies
S Dumping	4 Government or publicly regulated firms are directed to purchase expensive domestic goods than cheap imports