International Economics

Instructions:

1. Assignment must be typed and submitted in Microsoft Word format.

2. Format the assignment with 1.5 line spacing and size 12 point Arial font.

3. You must clearly label the answer to each question.

4. Word count: 1500-2000 words (total), not including references, tables and figures.

The suggested word limit for each question is provided in the assignment.

5. You should be familiar with materials covered until week 7 to answer this assignment. You may also use library resources and other online articles to support your answers.

Week 1: Introduction to the world economy

In this session we discussed:

1. Trade, capital flows and migration

2. Trade-to-GDP ratio and its significance

3. First wave of globalization and what factors are different today

4. Trade and Economic growth

5. Important International Institutions since World War II

Week 2: Theory of comparative advantage

In this session we discussed:

1. Absolute advantage

2. Gains from Trade

3. Comparative advantage

4. Comparative vs Competitive advantage

5. International Trade and Economic Restructuring

Week 3: Factor endowments and trade

In this session we discussed:

1. The Heckscher-Ohlin Trade Model

2. Trade and Income Distribution

3. The Product Cycle Model

4. Intra-firm trade and OLI theory

5. International migration

6. International Trade, Wages and Jobs

Week 4: Modern trade theories

In this session we discussed:

1. Intra-industry Trade

2. Economies of Scale – Internal vs. External

3. Transportation costs and Trade

4. Trade and External economies of Scale

5. Industrial Policy

Week 5: Trade barriers: Tariffs and quotas

In this session we discussed:

1. Consumer and Producer surplus

2. Impact of Tariffs, especially on Resource Allocation and Income Distribution

3. Tariffs imposed by a large country

4. Rates of Protection

5. Impact of Quotas

6. Other forms of Protection

Week 6: Trade policy

In this session we discussed:

1.Trends in tariff rates – Across sectors and over time

2.Costs of protectionism

3.Common reasons behind protectionist policies such as revenue generation, job protection, infant-industry protection among others

4.Politics of protection in the U.S.

Week 7: Labour and environmental standards

In this session we discussed:

1. Income, Development Indicators and Standards

2. Trade and labour standards

3. Child labour

4. Trade and Environment

5. Alternatives to Trade measures

6. You must clearly acknowledge all sources using Harvard referencing system including the textbook. The textbook for this unit called International Economics: Global Edition by James Gerber, 7th edition, published in 2017 by Pearson.

Use reliable resources such as journals, journals peer-reviewed, government sites, textbooks and reliable websites or so.