Knowledge and Understanding: Be conversant with major trade theories and policy measures.
•Application and Critical Thinking: Evaluate the impact of trade-related issues on countries based on trade concepts and theories.
•Ethical Thinking: Evaluate the impact of trade-related issues on countries with a focus on the trade-offs between efficiency and equity.
QUESTIONS
Question 1
Assuming that global international trade sharply declines because of the “trade war” (in the forms of increases in tariff and other trade barriers such as import quota and export subsidies on both sides) between the U.S. and China, the U.S. and the European Union, and the U.S. and Japan. Everything being equal, explain in 700-800 words the likely impact on the following:
•Global productivity, economic growth and inflation•Australian consumers who buy goods imported from China, Japan and the United States.•Australian producers who need to source from both China and the United States.•Australian exporters such as a mining company who exports iron ore and coal to China and Japan.
Your discussion must reference the following:
•Blinder, Alan S., 2019, “The Free-Trade Paradox: The Bad Politics of a Good Idea”, ForeignAffairs, Vol. 98 (1), 119-128 (Also available on iLearn);
•Chapters/sections of the prescribed textbook relevant to lecture topics from weeks 8-10; orlecture slides from weeks 8-10; and
•Three or more other academic references (i.e. research articles) from your own research.
Question 2
The U.S. and China are also currently engaged in a “technology war” (see e.g. this overview article from Forbes: https://www.forbes.com/sites/zakdoffman/2020/12/29/us-and-china-technology-conflict-heres-why-2020-is-so-critical/). Discuss in 700-800 words the likely impact of this “technology war” on Australian trade with both U.S. and China.
Your discussion must reference the following:
•Liu, T. and Wing, T.-W., 2018, “Understanding the U.S. – China Trade War”, China EconomicJournal, 11(3), 319-340. (Also available on iLearn)
•Chapters/sections of the prescribed textbook relevant to lecture topics from weeks 8-10; orlecture slides from weeks 8-10; and
•Three or more other academic references (i.e. research articles) from your own research.