1) Pretend you are a trade economist providing advice to the government of a newly emerging African country. Present (neutrally) both the case for and against a trade policy based on import substitution. You may use specific international (real-world) experiences to support your case for and against such a policy.
2) Is it possible for a country to have, simultaneously, a current account deficit along with a balance of payments surplus? Explain your answer with reference to the significance and meaning of each of the BOP accounts. Be sure to discuss the possible implications for official international reserve flows (i.e. the reserve portion of the financial account).