Host Countries

Question 1

Describe and explain various forms of regional economic integration agreements.

Briefly explain the main forms of economic integration.

Discuss the trade creation and trade diversion which occur when a country joins a customs union.

Can a trade diverting customs union result in trade creation?

Discuss the costs and benefits of multi national corporations to the home and host countries.

Who gains and who loses? Compare and contrast the effects of a tariff and an import quota as alternative methods of protecting a domestic industry.

Question 2

Select any TWO commercial banks in Malaysia. Based on the current interest rates offered by the banks, calculate the future value of annuity of RM100,000 made at the beginning of every year for 20 years. Analyse and compare the effect of the interest rates offered by the banks on the total savings.

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