Analyse how the terms-of-trade affect welfare

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Reference no: EM132884624 , Length: word count:2800

HI5016 International Trade and Enterprise - Holmes Institute

Purpose:

Students are expected to demonstrate their knowledge and understanding of a chosen topic by applying international trade theories and concepts learnt during Week 1 to Week

In this assignment, students are required to do better than recycle the lecture materials. Students are to research the chosen topic in more depth providing evidence of independent research.

Detailed requirements of the assignment

You are a group of advisors working in the Department of Trade and Foreign Affairs in Australia.As advisors you are required to write a report covering the following topics, based on the past 5 years, in which you compare two countries. Each group must choose two countries (not including Australia). This report should provide useful information for the Department of Trade and Foreign Affairs for appropriate strategic decision making for Australia and multinational enterprises in the country. The report should use a variety of resources, including the textbook, newspapers, industry reports, the ABS website, and other sources.

Research Topics

1. Comparative advantage
 Choose any two countries chosen from the list of countries listed in Annex 1. For each country, identify an industry or industries in which the chosen countries have comparativeadvantage. You must use relevant data/statistics to support your analysis used in the identification
 Explain the reasons/sources of the comparative advantage in each of the chosen countries
 Suggest ways to improve the comparative advantage in each country
 Reasons for the flow of trade and investment, the factors affecting the industry orindustries and how Australia can benefit from these countries

2. Terms of Trade
 Choose any two countries from the list of countries listed in Annex
1. For each country analyse its terms-of-trade trend over the last 10 years using relevant facts/figures

 Identify and analyse factors affecting the trend in the terms-of-trade for each of the chosen countries
Analyse how the terms-of-trade affect welfare in the chosen countries
Advise the Minister on any benefits from these countries to Australia

3. Export Subsidies in Agriculture, Wind/Solar energy industry
Choose either an agriculture or a wind/solar energy industry from any country listed inAnnex 1 that currently provides export subsidies to the industries. Discuss positive andnegative aspects of the export subsidies on the country's economy.
Evaluate the effects of the export subsidies on the country's
welfare using relevantsupporting data/statistics and literature
Examine the effects of effects of the subsidies on Australia (Only applies if the countrychosen is not Australia. However, if the country is Australia explain the effects of the subsidies to other countries)

4. Pattern of Trade
Choose any two countries from the listed countries in Annex 1. For each country, describe itspattern of trade over the last 30 years using relevant data
Identify and analyse factors responsible for a changing trade pattern in the chosen countries
In your opinion, discuss if your findings conform with what the trade theories predict
Examine the effects of the pattern of trade on Australia

Attachment:- International Trade and Enterprise.rar

Reference no: EM132884624

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