(a) State the differences between free trade areas, customs unions and common markets.

(b) What economic benefits might countries gain from forming a common market?


You have been retained by the management of an international group to advise on the management of its foreign exchange exposure.


 (a) Explain the main types of foreign exchange exposure

(b) Advise on policies which the corporate treasurer could consider to provide valid and relevant methods of reducing exposure to foreign exchange risk.