ECO-7016B International Trade Assignment
- Subject Code :
ECO-7016B
- University :
University of East London Exam Question Bank is not sponsored or endorsed by this college or university.
- Country :
Australia
Technical Assignment
Please read the instructions below carefully before proceeding with this assignment.
Instructions
You are supposed to work on your own on this assigment. All incidences of collusion and/or plagiarism will be penalised. Please read the University Policy on Plagiarism and Collusion here before proceeding with this assignment. This assignment will count towards 50% of your module mark.
Marks for each question or parts of a question are given in square brackets : []. Please answer all questions. If you are unclear about what is being asked on a question, do not hesitate to contact me.
Problem 1.
Explain what we mean by biased growth. Describe a situation where, biased growth may hurt a country that engages in international trade. Is this situation (i.e, biased growth hurting a country engaged in trade) likely to occur in the real world ? Use diagrams for your answer if necessary.[20 marks]
Problem 2.
Consider a simple two country two good framework in the context of the Ricardian Model. Show using a simple numerical example, how, when two countries specialize according to comparative advantage, the total world output increases for both goods.[20 marks]
Problem 3.
In the 18th. and the mid 19th. centuries the prevalent economic wisdom was that of “Mercantilism”. Mercentalists argued that a country’s wealth was related to its exports and imports. If a country exports then trade increases welfare and if a country imports then a country decreases its welfare. Do you agree with this mercentalist perspective? Give reasons for or against the mercentalist position. [20 marks]
Problem 4.
“Singapore in 1965 was a low-skill labour abundant country compared to the rest of the world and exported low skill labour intensive goods like garments. Singapore’s leader Lee Kuan Yew placed great emphasis on education. Then 25 years later, in 1990 Singapore started exporting high skill labour-intensive computer parts and importing garments.” Use a model of trade that you have learnt in the module to explain this phenomenon? [20 marks]
Problem 5.
Consider the following statement : “The UK makes great cars. We do not need to import cars. We should not trade in cars.” Using a model of trade that you have learnt, provide an argument why it would still be benefificial for the UK to trade in cars. [20 marks]
