These questions assume that you have read the following article :
B. Quoitin, S. Uhlig, C. Pelsser, L. Swinnen and O. Bonaventure. Interdomain traffic engineering with BGP IEEE Communications Magazine Internet Technology Series, 41(5):122-128, May 2003. http://inl.info.ucl.ac.be/publications/interdomain-traffic-engineering-bgp