Students are expected to demonstrate their knowledge and understanding of a chosen topic by applying international trade theories and concepts learned from Week 1 to Week 9. The in-depth analysis of the chosen topic, should be supported by data/statistics, figures, tables, and relevant literature.

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 a comparative advantage. 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 or industries and how Australia can benefit from these countries

2. Terms of Trade

•  Choose any two countries from the list of countries listed in Annex1. For each country, analyze its terms-of-trade trend over the last 10 years using relevant facts/figures
•  Identify and analyze factors affecting the trend in the terms-of-trade for
  each of the chosen countries
•  Analyze how the terms-of-trade effect 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 agriculture or a wind/solar energy industry from
  any country listed in annex 1 that currently provides export subsidies
  to the industries. Discuss positive and negative aspects of the export
  subsidies on the country’s economy.
•  Evaluate the effects of the export subsidies on the country’s
  welfare using relevant supporting data/statistics and literature
•  Examine the effects of the subsidies on Australia (Only
  applies if the country chosen is not Australia. However, if the
  the country is Australia explains 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 its pattern of trade over the last 30 years using relevant
  data
•  Identify and analyze 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