international trade

International Trade Assignment 1 Page 1

INTERNATIONAL TRADE

(ECON 1086- RMIT, Australia)

(ECON 1269- RMIT, Vietnam)

(ECON 1089- SIM, Singapore)

ASSIGNMENT 1

THE DUE DATE IS FRIDAY WEEK 3 (9. August 2019) AT MIDNIGHT.

Instructions for submission:

1. Click on Assignments on Canvas. 2. Click on Assignment 1. 3. On the right-hand corner, click on Submit Assignment. 4. Attach your file by clicking on Choose File. 5. Once you selected your file containing your assignment, click on

Submit Assignment at the bottom.

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).

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.

International Trade Assignment 1 Page 2

Assignment 1 (25% of your final grade)

Check CANVAS for due dates.

*** 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)