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Egerton University International Agri Trade & Export Management: practice questions

Egerton University: Master of Agribusiness Management; MSc Agricultural Economics; MSc Applied Agricultural Economics · Kenya · Egerton University

Original practice questions written to the published syllabus · not past papers
10worked here, free
21written to this exam in this subject
9syllabus units

About Egerton University

Egerton University: Master of Agribusiness Management; MSc Agricultural Economics; MSc Applied Agricultural Economics is a postgraduate admission exam run by Egerton University, for candidates in Kenya. Online application; no entrance test.

Source: graduateschool.egerton.ac.ke.

Checked against the exam body's published information. Formats and fees change; confirm the current edition there before you book.

International Agri Trade & Export Management in Egerton University

Why countries trade, how trade is measured and regulated, and how an agribusiness actually exports.

Our 21 Egerton University questions in this subject: 0 easy, 4 medium, 17 hard, across 9 units.

10 practice questions, worked

Choose an answer, then open the working. Each explanation says why the right answer is right and why the others are not.

These 10 were written to Egerton University and are not shown on any other exam's page.

Question 1 · hard

Which is a recognised limitation of the Balassa revealed comparative advantage index?

  1. It reflects trade distortions such as subsidies and ignores imports
  2. It requires detailed domestic price data for each product and every trading partner
  3. It can only take values between 0 and 1
  4. It cannot be computed for agricultural products
Answer and working

A. It reflects trade distortions such as subsidies and ignores imports

RCA uses observed exports, so export subsidies or protection can raise it without any true cost advantage, and imports are ignored. It ranges from 0 to infinity (hence symmetric versions), uses trade not price data, and is widely computed for farm products.

Question 2 · hard

The factor-price equalisation theorem is associated with:

  1. Tadeusz Rybczynski
  2. Raymond Vernon
  3. Paul Samuelson
  4. Wassily Leontief
Answer and working

C. Paul Samuelson

Samuelson (1948, 1949) proved that under H-O assumptions free trade equalises factor returns. Leontief tested H-O empirically; Vernon proposed the product cycle; Rybczynski's theorem concerns endowment changes.

Question 3 · hard

Small exporting country: Qs = 4P − 100, Qd = 300 − P, world price 100. An export subsidy of 20 per unit is introduced. The cost of the subsidy to the treasury is:

  1. 6,800
  2. 2,000
  3. 4,000
  4. 1,000
Answer and working

C. 4,000

At 120: Qs = 380, Qd = 180, exports 200; cost = 200 × 20 = 4,000. 2,000 uses pre-subsidy exports (100); 6,800 is the producer gain; 1,000 is the net welfare loss.

Question 4 · hard

At domestic prices an activity's output is worth 1,000 and tradable inputs 600; at world prices output is worth 900 and tradable inputs 650. The effective protection coefficient is:

  1. 1.11
  2. 0.625
  3. 1.6
  4. 0.92
Answer and working

C. 1.6

EPC = VAd/VAw = (1,000 − 600)/(900 − 650) = 400/250 = 1.6. 1.11 compares output prices only (an NPC), 0.625 inverts EPC, 0.92 compares inputs.

Question 5 · hard

Maize FOB at a foreign port is 250 dollars/t, freight 40, insurance 2, exchange rate 80 per dollar, port charges 800 and transport from port to the inland market 1,200 (local currency per tonne). The import parity price at the inland market (excluding duty) is:

  1. 23,360
  2. 20,000
  3. 27,360
  4. 25,360
Answer and working

D. 25,360

CIF = 292 dollars × 80 = 23,360; + 800 + 1,200 = 25,360. 23,360 stops at the port; 20,000 converts only FOB; 27,360 double-counts the inland costs.

Question 6 · hard

Rice FOB is 300 dollars/t, exchange rate 80, port charges 700 and farm-to-port transport 1,300 (local currency per tonne). The export parity price at the farm is:

  1. 26,000
  2. 23,300
  3. 24,000
  4. 22,000
Answer and working

D. 22,000

Export parity works backwards: 300 × 80 = 24,000 − 700 − 1,300 = 22,000. 26,000 adds the costs instead of subtracting them; 24,000 ignores them. 23,300 subtracts the port charges but not the transport.

Question 7 · hard

The world's cheapest supplier sells a good at 100 and faces a 50% tariff; a partner sells at 120. After a free trade agreement with the partner, imports switch to the partner. Per unit, the importing country's real resource cost of imports:

  1. Is unchanged because consumers pay less
  2. Falls by 30
  3. Rises by 20 and it loses 50 of tariff revenue
  4. Rises by 50
Answer and working

C. Rises by 20 and it loses 50 of tariff revenue

Before, the nation paid 100 abroad (consumers paid 150, of which 50 was revenue). After, it pays 120 abroad: real cost up 20, revenue of 50 lost; consumers gain 30 per unit, which is a transfer from the lost revenue. This is Viner's trade diversion.

Question 8 · medium

The main criticism developing countries make of the AMS calculation for public stockholding is that:

  1. It ignores administered prices
  2. It counts green-box spending
  3. It uses current world prices, so every fall in world market prices automatically inflates measured support
  4. The external reference price is fixed at 1986-88 levels, so inflation alone raises measured support
Answer and working

D. The external reference price is fixed at 1986-88 levels, so inflation alone raises measured support

Comparing today's administered prices with 1986-88 reference prices inflates market price support, even when domestic prices are below current world prices. Updating the reference price is part of the permanent-solution debate.

Question 9 · hard

The dispute over an importing member's ban on beef from cattle treated with growth-promoting hormones is the classic WTO case on:

  1. Whether an SPS measure is based on a risk assessment
  2. Dumping margins on agricultural goods
  3. Geographical indications for meat
  4. Tariff-rate quota administration
Answer and working

A. Whether an SPS measure is based on a risk assessment

In EC-Hormones, panels and the Appellate Body examined whether the ban was based on a risk assessment under SPS Article 5 when it exceeded Codex standards.

Question 10 · hard

The maximum total duration of a safeguard measure for a developed-country member under the Agreement on Safeguards is:

  1. Eight years
  2. Ten years
  3. Five years
  4. Four years
Answer and working

A. Eight years

An initial period of up to four years can be extended to a total of eight; developing members may extend to ten. Five years is the anti-dumping sunset period.

A study plan for International Agri Trade & Export Management in Egerton University

This plan follows where our questions actually fall, so the time goes where the marks are likely to be. It is our reading of the syllabus, not the exam body's weighting.

  1. First, the heavy units (62% of the 21 questions): Tariffs and non-tariff measures (9, 43%); Anti-dumping (2, 10%); Exchange rates (2, 10%).

    Read the manual chapters for these first and do every worked question you can find on them.

  2. Then the middle band: Heckscher-Ohlin factor-endowment theory (2, 10%); WTO Agreement on Agriculture and its boxes (2, 10%); Absolute and comparative advantage (1, 5%).

    Aim for one sitting per unit, then mixed questions across them.

  3. Then the lighter units: Leontief paradox (1, 5%); Product life-cycle theory of trade (1, 5%); TRIPS, TRIMs, SPS and TBT agreements (1, 5%).

    Learn the definitions, classifications and standard numbers; these units are more often recalled than worked.

  4. Leave time for the hard ones: Anti-dumping (2 hard of 2), Exchange rates (2 hard of 2), Absolute and comparative advantage (1 hard of 1).

    Come back to these after a first pass, untimed, and read every explanation, including for the options you rejected.

  5. Finish timed. Sit the subject as a timed set without notes, mark it, and send each wrong answer back to its unit above.

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