international trade

Course Name: International Trade

Course Code: ECON1086

Weight: 25%

Due date: FRIDAY WEEK 3 (August 9) AT MIDNIGHT

Feedback mode: ONLINE.

Learning Objectives Assessed:

Understand how to use data in practical analysis and learn how to write brief reports and policy briefs. 

This assessment is linked to the following Course Learning Objectives (CLOs):

· Manipulate economic models to analyse real world issues in international trade.

· Analyse the fundamental determinants of the size and pattern of trade to verify its determinants and its effects on the wider economy/welfare.

· Compare and contrast economic and political conditions in poor and rich countries to critically assess the incentives and consequences of trade liberalisation globally.

· Assess the impact of protectionist policies on the welfare in rich and poor countries to decrypt the political economy of trade reform.

 

Instructions for submission:

· Click on  Submit Assignment .

· Click on  Choose File .

· Once you selected your file containing your assignment, click on  Submit Assignment  at the bottom.

You can submit more than once. Only your last submission will be graded.

Assessment Declaration:

I declare that in submitting all work for this assessment I have read, understood and agree to the content and expectations of the  Assessment declaration (Links to an external site.) .

Details:

To answer the assignment questions first get the data follow these steps.

1. This assignment requires you to obtain data from two (2) countries of your choosing over the period 1985-2005.

2. Obtain country-level data on trade (% GDP) and GDP per capita (constant 2010 US$) from the World Bank’s World Development Indicators ( http://databank.worldbank.org/data/source/world-development-indicators (Links to an external site.)  (Links to an external site.) ).

3. DO NOT attach Excel files to the assignment.

4. Keep explanations brief. Policy analysis in applied economics has to be brief. Be precise and to the point, avoid jargon.

 

Questions

 

*** Follow the instructions above on how to get the data.

*** Read Chapter 1 and/or the notes from Lecture 1 very carefully.

 

1. In approximately 150 words, describe the economic background of these countries. What region are they in, what do they export, are they rich or poor? (5 marks)

2. In approximately 200 words, explain what type of globalisation does trade/GDP (also called openness) measure.  Are there other measures you could have used?  Why do think openness is useful when compared to other measures? (5 marks)

3. Using 2 graphs (one for each country), plot openness versus time for each country. Explain approximately 100 words how openness has changed for these countries from 1985 to 2005. Make sure your graph is properly labelled. (5 marks)

4. Explain in approximately 100 words the relationship between openness and economic development by calculating the correlation coefficient between GDP per capita (proxy for economic development) and openness for each of the two countries, respectively. [Here you have to use the CORREL command in Excel]. DO NOT ATTACH YOUR DATA TO THE ASSIGNMENT. (5 marks)

5. Explain in approximately 250 words the factors that you think drive openness in these two countries. What domestic policy changes have driven openness and how have changes the in international economic and political arena affected their main exports? (For example, have shocks increased or decreased the price of their main export in international markets?) [You are expected to undertake research to answer this question]. If you use information, reference it. References do not count in the word count. (5 marks)

 

The Assignment Brief can be downloaded  here

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Rubric

Assignment 1 S2 (1)

Assignment 1 S2 (1)
Criteria	Ratings	Pts
This criterion is linked to a learning outcomeQuestion 1 (Background)	5.0 Pts Well researched brief descriptions. Students cite existing literature from academia or government sources. 3.0 Pts Presented concepts, research is incomplete. 0.0 Pts Irrelevant information is provided. Information is not believable or unrelated to international trade.	5.0 pts
This criterion is linked to a learning outcomeQuestion 2 (Openness definition)	2.0 Pts Correct definition and (intuitive) explanation 1.0 Pts Definition without intuitive explanation. 0.0 Pts Wrong definition	2.0 pts
This criterion is linked to a learning outcomeQuestion 2 (Other measures of globalisation)	2.0 Pts Lists other examples of how globalisation can be measured in economics. 1.0 Pts Does not list good examples of measures of globalisation in economics. 0.0 Pts Does not list examples of globalisation in any discipline.	2.0 pts
This criterion is linked to a learning outcomeQuestion 2 (What we measure)	1.0 Pts Properly notes what openness measures. 0.5 Pts Partially mentions what openness measures. 0.0 Pts No proper discussion of the meaning of the variable of interest.	1.0 pts
This criterion is linked to a learning outcomeQuestion 3 (Graphs)	3.0 Pts Both graphs properly labelled. Axes have been labelled. Data on both axes is easy to read. Graphs can be understood without referring to the text. 1.5 Pts Labels are incomplete, data in one axis cannot be read or understood properly. 0.0 Pts Graphs cannot be read or understood or axes are not labelled.	3.0 pts
This criterion is linked to a learning outcomeQuestion 3 (Graph explanation)	2.0 Pts Explanation briefly discusses trends in both graphs, comparing the two countries. 1.0 Pts Explanation is not entirely consistent with the graphs. Student shows difficulty in explaining graphical material in words. 0.0 Pts No clear explanation is provided.	2.0 pts
This criterion is linked to a learning outcomeQuestion 4 (Correlation coefficients)	2.0 Pts Correlation coefficients for each country are clearly stated. 1.0 Pts Correlation coefficients are not expressed properly. 0.0 Pts Correlation coefficients are not provided.	2.0 pts
This criterion is linked to a learning outcomeQuestion 4 (explanation)	3.0 Pts Student states the sign of the correlation coefficeint and what this means. Student makes a note of causality between the variables of interest. Causality inferred from correlations is interpreted correctly. The finding is explained in terms of economic theory, as discussed in the lecture notes. 2.0 Pts Student states the sign of the correlation coefficeint and what this means. Student does not clearly make a note of causality between the variables of interest. 0.0 Pts Student states the sign of the correlation coefficient, but does not provide a clear explanation for findings nor discusses causality.	3.0 pts
This criterion is linked to a learning outcomeQuestion 5	5.0 Pts Students discuss at least two general factors that can drive openness within the context of each economy. References are used carefully. 2.0 Pts Students discuss one general factor that can drive openness. References are used carefully. 0.0 Pts Students discuss irrelvenat factors, not backed up by economic research.	5.0 pts
Total points: 25.0