2FQ1 lower labour

International Business Finance and Economics of Globalisation

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

You must clearly acknowledge all sources using Harvard referencing system including the textbook. The textbook called International Economics 7th edition by J Gerber, published in 2017 by Pearson.

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

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

Rubrics:

Highly developed skills in expression and presentation of ideas. Fluent writing style. No major grammatical and spelling errors. All references, including recent literature, cited and used accurately.

Excellent use of knowledge gained and awareness of deeper and more subtle aspects of economic issues and theories. There is clear evidence of researched/read more widely beyond the core materials.

Provides well-argued and articulated statements with supporting evidence. Evidence of originality and independent thought. Has highly developed analytical skills & consistently demonstrates high levels of critical analysis. Demonstrates ability to reflect on conclusions and their implications.

Question 1 (10 marks, 600 words)

(a) Are there any links between lower labour and environmental standards in developing countries and their increased shares in world trade and investment? Discuss with evidence.

(4 marks, 200 words)

(b) Do you support the idea of imposing restrictions on the imports of goods that have been manufactured using child labor and in countries with lower environmental standards? Why? Why not? Discuss.

(3 marks, 200 words)

(c) What are the best ways to address lower labor and environmental standards in developing countries? Discuss.

(3 marks, 200 words)