Homework answers / question archive / International Trade Ready for life and work: In order to be able to write relevant, accurate and significant reports, the students will need to access real life situations and make conclusions based on appropriate theoretical frameworks

International Trade Ready for life and work: In order to be able to write relevant, accurate and significant reports, the students will need to access real life situations and make conclusions based on appropriate theoretical frameworks

Economics

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International Trade

Ready for life and work:

• In order to be able to write relevant, accurate and significant reports, the students will need to access real life situations and make conclusions based on appropriate theoretical frameworks.
• To train the researching method, the student will need to find the relevant information and discriminate high value sources from low quality sources.
• All this will allow students go gain the skills of producing high quality work requested by the management of firms to make informed and correct decisions on trade questions.

 

 

Learning outcomes covered in this assignment:

• Examine international trade data to critically discuss economic theorems and apply in diverse contexts.
• Evaluate arguments for and against intervention in the trade process to justify arguments in favour and against globalization.
• Compare and contrast economic and political condition in poor and rich countries to critically assess the incentives and consequences of trade liberalization globally.
• Assess the impact of protectionist policies on the welfare in rich and poor countries to decrypt the political economy of trade reform.

 

 

 

Maximum wordcount: 1200 words

 

1. Theory question: tariff in a small country

[24 points, wordcount recommendation: appox. 500-600 words]

1. Collect and present yearly data for imports of vehicles to Vietnam and exports of iron

and steel of Vietnam for the year 2018-2020. Present the average for the time frame

of imports and exports. Present the three main countries which export vehicles to

Vietnam and also the three main countries which import iron and steel from Vietnam.

(4 points)

 

2. Assume that Vietnam has imposed no tariff on imports for vehicles. Present a graph

showing this free trade situation, using Vietnam’s production possibility curve for

vehicles and for iron&steel. Attempt at depicting the situation as closely to the real

data as possible. Briefly explain your graph. Presenting a graph showing the market

for domestic supply and demand for one good will not be awarded any marks. (5

points)

 

3. Assume now that Vietnam imposes a tariff of 65% on imported vehicles. Present the

dynamics of this change in your graph. Discuss the dynamics briefly. (6 points)

4.  What are the welfare implications of the tariff for Vietnam? Discuss by using your graph as a basis. (5 points)
5. Assume now that the Vietnamese Dong appreciates towards the world currencies.

Present the graph of c) showing these changes. Assume that world demand for

iron&steel is perfectly inelastic. What would you expect to happen as a consequence

of the appreciation? Discuss. (4 points)

 

 

2. Inequality and poverty reduction through international trade

[18 points, wordcount recommendation: approx. 400-500 words]

 

1. Collect data for a year of your choosing after 2010 and present the key indicators

for the trade relations between South Africa and Vietnam for that year. Briefly

present the key points of the trade agreement between those two countries. (5

points)

 

2.   Choose two suitable products within the top 5 export and import products between

the two countries. Chose a trade model covered in class, briefly present the

model. Use the chosen model to discuss if this model can explain the trade

between the two countries of the two goods you chose. (6 points)  

 

3.   Present an approximation of the terms of trade between the two countries for the

two chosen goods for the years 2010-2019. Collect and present the Gini

coefficient for both countries for the years 2010-2019. Present poverty data of the

two countries for the years 2010-2019. Briefly explain your findings. (4 points)

 

4.   Do your findings in part b) and c) confirm or contradict the Stolper-Samuelson

theorem? Explain. Using external sources and your own deduction to discuss if

there is evidence that international trade contributed to poverty reduction in one or

both countries. (3 points)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rubric Assignment 3

Criteria	Ratings	Pts
This criterion is linked to a Learning OutcomeThis criterion is linked to Learning Outcome Manipulate economic models to analyse real world issues in international trade.	18 to >14.38 pts HD Excellent demonstration of the Cournot Model; accurate calculation and excellent presentation of steps, no mistakes in graphs; excellent and accurate analysis. 14.38 to >12.58 pts DI Good demonstration of the Cournot model; good and widely accurate calculation and good presentation of steps, minor mistakes in graphs which do not affect the key elements; good and appropriate analysis. 12.58 to >10.78 pts CR Fair demonstration of the Cournot model; some calculation mistakes with do not affect the main results, fair presentation of steps, some mistakes in graphs; fair analysis with some valid points. 10.78 to >8.98 pts PA Presentation of the basic elements of the Cournot model; some mistakes in calculation that lead to mistakes in results but with some correct elements within the calculations. Some steps are missing. Some mistakes in graphs. The analysis is weak though some few valid elements are still present. 8.98 to >0 pts NN Fail to meet the PA requirement.	18 pts
This criterion is linked to a Learning OutcomeThis criterion is linked to Learning Outcome Examine international trade data to critically discuss economic theorems and apply in diverse contexts and Learning Outcome Analyse the fundamental determinants of the size and pattern of trade to verify its determinants and its effects on the wider economy/welfare.	18 to >14.38 pts HD 1) Exhaustive and accurate collection of trade data and excellent presentation of findings. 2) Excellent analysis on trade patterns and comparison of the countries. 3) Excellent presentation of outlook with excellent insight on the industries' effect due to the pandemic. 14.38 to >12.58 pts DI 1) Wide and accurate collection of trade data and good presentation of findings. 2) Good analysis on trade patterns and comparison of the countries. 3) Good presentation of outlook with Good insight on the industries' effect due to the pandemic. 12.58 to >10.78 pts CR 1) Broad and accurate collection of trade data and fair presentation of findings. 2) Fair analysis on trade patterns and comparison of the countries. 3) Fair presentation of outlook with fair insight on the industries' effect due to the pandemic. 10.78 to >8.98 pts PA 1) Acceptable and fair collection of trade data and acceptable presentation of findings. 2) Acceptable analysis on trade patterns and comparison of the countries. 3) Acceptable presentation of outlook with acceptable insight on the industries' effect due to the pandemic. 8.98 to >0 pts NN Fail to meet the PA requirement.	18 pts
This criterion is linked to a Learning OutcomeThis criterion is linked to Learning Outcome: Evaluate arguments for and against intervention in the trade process to justify arguments in favor and against globalization.	14 to >11.17 pts HD Excellent article including writing and style. Excellent data collection and presentation of it. Excellent identification of additional economic variables which affected disparity. All key terms are presented in an excellent way. Excellent choice of model and perfect presentation of the model's fit. 11.17 to >9.77 pts DI Good data collection and presentation of it. Good identification of additional economic variables which affected disparity. All key terms are presented in an good way. Good choice of model and good presentation of the model's fit. 9.77 to >8.37 pts CR Fair data collection and presentation of it. Fair identification of additional economic variables which affected disparity. All key terms are presented in an fair way. Fair choice of model and fair presentation of the model's fit. 8.37 to >6.97 pts PA Data collection and presentation of it with some errors. Identification of few additional economic variables which affected disparity in a direct or indirect way. Most key terms are presented with some minor errors or too briefly. Choice of model and presentation of the model's fit is presented, though with minor errors. 6.97 to >0 pts NN Fail to meet the PA requirement.	14 pts
Total Points: 50