ECO203e: Summarise Trade Creation and Trade Diversion and Analyse the Dynamic: International Economics Assignment, SUSS

Question 1 Summarise trade creation and trade diversion and analyse the dynamic benefits of a customs union with appropriate diagrams. For the Association of Southeast Asian Nations (ASEAN) only at its current stage as ASEAN Free Trade Area (AFTA), discuss whether it should move on to a customs union. Question 2 Explain the relationship between …
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Question 1

• Summarise trade creation and trade diversion and analyse the dynamic benefits of a customs union with appropriate diagrams.
• For the Association of Southeast Asian Nations (ASEAN) only at its current stage as ASEAN Free Trade Area (AFTA), discuss whether it should move on to a customs union.

Question 2

Explain the relationship between the exchange rate and the balance of payments.

Question 3

Show income determination in a closed economy in contrast to an open economy using the concepts of income as determined by injections (like investment and exports) and leakages (like saving and imports). (Hint: discuss in words like Singapore, with a high reliance on international trade and capital flows, is an open economy)

Question 4

Appraise the adjustable peg, crawling peg, and managed floating exchange rate systems and elaborate on how the Monetary Authority of Singapore (MAS) conducts its monetary-exchange rate policy (a diagram is useful).

SECTION B

Prepare a video recording of the presentation on Question 3 of at least 3 minutes but not exceeding 6 minutes. There are two methods for ECA video assignment submission; either Record Media or Upload Media. For Upload Media, please note that your file size should be no more than 500MB and the format is in .mp4.

SECTION C

Prepare a set of PowerPoint presentations upon which the video presentation is based. Please note that the PowerPoint must be converted to PDF before submission to Canvas.

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