1 HI5016 International Trade and Enterprise: Tutorial Submission Question, T2 2020 Assessment Task – Tutorial Question Assignment Unit Code: HI 5016 Unit Name: International Trade and Enterprise...

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1 HI5016 International Trade and Enterprise: Tutorial Submission Question, T2 2020 Assessment Task – Tutorial Question Assignment Unit Code: HI 5016 Unit Name: International Trade and Enterprise Assignment: Tutorial Questions Due: Week 13, Tuesday October 13, 2020 Weighting: Final examination weighting- Fifty percent (50%) Word Limit: ≤3,000 Purpose: This assignment is designed to assess your level of knowledge of the key topics covered in this unit Unit Learning Outcomes Assessed: 1. Acquire a broad understanding of the changing international trade and investment pattern among nations. 2. Analyse how major models and theories explain international trade and how nations benefit from international trade 3. Comprehend the international factor movements, trade policy instruments, the arguments for protectionism and; the role of Regional Trade Agreements and the WTO in promotion of international trade, investment and economic growth among nations. 4. Synthesise the theoretical and practical knowledge of international economics, a well-developed understanding of the language of international trade and the tools of trade policy used by policy makers in a nation. Description: Each week students were provided with three tutorial questions of varying degrees of difficulty. The tutorial questions are available in the Tutorial Folder, for each week, on Blackboard. The Interactive Tutorials are designed to assist students with the process, skills and knowledge to answer the provided tutorial questions. Your task is to answer a selection of tutorial question for weeks 1 to 11 inclusive and submit these answers in a single document. Submission Directions: Submit your solutions via Blackboard. Each student is permitted only ONE submission to Blackboard. You need to ensure that the document submitted is the correct one. HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION 2 HI5016 International Trade and Enterprise: Tutorial Submission Question, T2 2020 Academic Integrity Holmes Institute is committed to ensuring and upholding Academic Integrity, as Academic Integrity is integral to maintaining academic quality and the reputation of Holmes’ graduates. Accordingly, all assessment tasks need to comply with academic integrity guidelines. Table 1 identifies the six categories of Academic Integrity breaches. If you have any questions about Academic Integrity issues related to your assessment tasks, please consult your lecturer or tutor for relevant referencing guidelines and support resources. Many of these resources can also be found through the Study Skills link on Blackboard. Academic Integrity breaches are a serious offence punishable by penalties that may range from deduction of marks, failure of the assessment task or unit involved, suspension of course enrolment, or cancellation of course enrolment. Table 1: Six categories of Academic Integrity breaches Plagiarism Reproducing the work of someone else without attribution. When a student submits their own work on multiple occasions this is known as self-plagiarism. Collusion Working with one or more other individuals to complete an assignment, in a way that is not authorized. Copying Reproducing and submitting the work of another student, with or without their knowledge. If a student fails to take reasonable precautions to prevent their own original work from being copied, this may also be considered an offence. Impersonation Falsely presenting oneself, or engaging someone else to present as oneself, in an in-person examination. Contract cheating Contracting a third party to complete an assessment task, generally in exchange for money or other manner of payment. Data fabrication and falsification Manipulating or inventing data with the intent of supporting false conclusions, including manipulating images. Source: INQAAHE, 2020 If any words or ideas used the assignment submission do not represent your original words or ideas, you must cite all relevant sources and make clear the extent to which such sources were used. In addition, written assignments that are similar or identical to those of another student is also a violation of the Holmes Institute’s Academic Conduct and Integrity policy. The consequence for a violation of this policy can incur a range of penalties varying from a 50% penalty through suspension of enrolment. The penalty would be dependent on the extent of academic misconduct and your history of academic misconduct issues. All assessments will be automatically submitted to SelfAssign to assess their originality. Further Information: For further information and additional learning resources please refer to your Discussion Board for the unit. 3 HI5016 International Trade and Enterprise: Tutorial Submission Question, T2 2020 The questions to be answered are; Assessment Question Week 2 Question 1: World Trade Overview and Gravity Model In the 19th Century Britain was trading with countries from distant locations such as North America, Latin America, Africa and Asia. Today, Britain mostly trades with European countries. Examine the causes of the British changing trade pattern with reference to the Gravity Model. (7 Marks) Assessment Question Week 4 Question 2: Resources and Trade: Heckscher-Ohlin (H-O) Model How does the Ricardian model differ from the H-O theory in explaining international trade patterns among nations. (7 Marks) Assessment Question Week 6 Question 3: Economies of Scale, Imperfect Competition and International Trade Trade need not be the result of comparative advantage but it can be a result of economies of scale. Discuss. (7 Marks) Assessment Question Week 7 Question 4: International Factor Movements Explain the effects of migration of labour between two nations. Use the figure below and the marginal product of labour concept to explain your answer. (11 Marks) Labour ?1 ??? ???????? 0?? ?? ? ? ?? ?? 0?? ??? ??????? ? ??? ???????? ??? ???????? E D F Wages 4 HI5016 International Trade and Enterprise: Tutorial Submission Question, T2 2020 Assessment Question Week 10 Question 5: Trade Policy in Newly Industrialized/Developing Countries Infant Industry protection is a key solution for the growth of industrialization of developing countries. Discuss your answer by using the graph below and any other graph(s) that you can deem appropriate. (7 Marks) Assessment Question Week11 Question 6: Controversies in Trade Policy After the Seattle 1999 World Trade Organization Ministerial Conference fiasco, in the next 2 years, large anti-globalization demonstrations rocked the International Monetary Fund and Work Bank in Washington. What was the anti-globalization movement goal- and was it right? Explain you answer and where appropriate use figures. (11 Marks) End 1 ?? ??????? ????????????? Quantity Price/cost ?????? ????????????? ???????? ? ?? ????? ???????? ? ??? ??????? ?
Answered Same DayOct 07, 2021HI5016

Answer To: 1 HI5016 International Trade and Enterprise: Tutorial Submission Question, T2 2020 Assessment Task –...

Komalavalli answered on Oct 10 2021
143 Votes
Question 1:
Gravity version of trade model is a most famous econometric model in worldwide trade. It originates with the idea of Tinbergen (1962), there are thousands of posted articles and running papers considering that then. “some of the clearest and maximum strong findings in empirical Economics.” (Leamer & Levinsohn, 1995).
Idea of gravity model of trade evolved from the gravitational pressure idea as an analogy to explain the quantity of bilateral change flows. Initially, it becomes now not p
rimarily based on the theory, but simply intuition on in a while, a range of rigorous theoretical foundation has been given.
The article “Can Brexit defy gravity? It is still much cheaper to trade with neighboring countries” published by Saul Estrin, Christine Cote (LSE), and Daniel Shapiro in London School of economics analysis the trade of Britain between the neighboring countries using gravity model. They found that the trade model of gravity implies that the distance effect will lessen alternate among the China and UK, relative to that among the United Kingdom and France, through a factor of (sixteen.6) squared, or around 277 times. As a result the impact of distance a great deal more than offsets the advantages of buying and selling with larger (or faster developing) economies.
Question 2:
Ricardian Model:
The new edition of the Ricardian model assumes that there are two international locations, producing goods, using one issue of manufacturing, generally labor. The version is a stylish equilibrium model in which all markets (i.E., goods and elements) are flawlessly aggressive. The products produced are assumed to be homogeneous at some stage in worldwide locations and corporations inside an enterprise. Devices may be costless shipped between countries (i.E., there are not any transportation charges). Exertions is homogeneous within a country however may additionally moreover moreover have one-of-a-kind productivities all through worldwide places. This implies that the producing era is thought to differ across international places. Labor is costless cell at some point of industries interior a rustic however is immobile across worldwide places. Complete employment of exertions is likewise assumed. Customers (the personnel) are assumed to maximise application problem to an earnings constraint.
Heckscher-Ohlin theory
Heckscher-Ohlin theory in economics states a principle of comparative advantage in global alternate in keeping with which international locations wherein capital is largely abundant and labor extraordinarily scarce will have a tendency to export capital-in depth merchandise and import labour-extensive merchandise, while international locations in which labor is distinctly ample and capital fairly scarce will generally tend to export labor-extensive products and import capital-intensive products. The difference between Ricardo and HO model for explaining trade is the resource abundance and input intensive production.
Question 3:
Economies of scale states that the manufacturing at a larger scale (extra output) can be completed at a decrease charge (i.E, with economies or savings). Whilst production within an industry has this specialization, function, and alternate can bring about enhancements in international effective overall performance and welfare advantages that gather to all shopping for and selling countries. Comparative advantage is an economic system's capacity to offer a selected actual or company at a lower possibility rate than its buying and promoting partners. The comparative advantage offers an business enterprise the capability to sell gadgets and offerings at a lower fee than its competition and recognize more potent profits margins.
Trade between two nations not only explain by comparative advantage but it also explained by the model of economics of scale. Certainly, it's miles achievable that countries could be alike in all respects and but discover it nice to alternate. For that reason, economies-of-scale fashions are regularly used to clarify change amongst nations like the USA, Japan, and the European Union. For the maximum part, those countries, and different evolved international locations, have comparable technologies, similar endowment, and to some extent similar alternatives. The usage of classical fashions of alternate, these nations could have small motive to engage in trade. But trade among the advanced nations create a considerable percentage of worlds alternate.
From this we can see that comparative advantage explains the opportunity cost of production while economics of scale explains us how production at large scale minimize the cost of production, which results in economic profit. Therefore international trade was a result of economic of scale.
Question 4:
The economic results of migration range appreciably. Sending international locations might also revel in each gain and losses within the brief time period but might also additionally stand to benefit over the long time. For receiving international locations...
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