MAE308: Contemporary issues in Trade and Development T2 2019 Written Report (Assignment) Due Date: 13th September, Friday by 11.59pm in CloudDeakin Written Assignment Dropbox. Total marks: 80 points Note: This report (assignment) is to be completed in a group and needs to be submitted by one of the group members in CloudDeakin by the due date and time. Presentation format: In terms of presentation, we strongly recommend that each group presents the answers to first two questions orally in person. The face-to-face presentation is scheduled on Wednesday, the 18th September during the seminar time (9.00 am to 10.50 am) in the seminar room (Y2.43). Each group will have 10 minutes for presentation. 20 marks are allocated for presentation. If any group is unable to present face-to-face (especially for online students), please inform the unit chair at least one week in advance with a valid reason, and once the unit chair permits, then send us a video of the presentation (10 minutes duration) which will be evaluated. Report (Assignment) questions Q1. Go to the following website and find out the TOP FIVE countries as of 2018 in terms of Goods exports and Goods imports from the table, “Australia’s direction of goods & service trade – calendar years from 1987 to present” http://dfat.gov.au/trade/resources/trade-statistics/Pages/trade-time-series-data.aspx a. For each of these TOP FIVE countries, download the values of goods exported and goods imported for the years 2000 to 2018. b. Present this data in a Table (or Tables if need be) clearly identifying the country names and variable names including years. c. Now plot the data series for exports for all countries together in a graph. Then plot the data series for imports for all countries together in a graph. d. Based on these graphs, discuss and explain any broad pattern of trade between Australia and each of these five countries. For explanation, you can use the concepts or theories we have learnt in this unit. 1 e. What would you recommend to the Government to boost trade if you were a policy maker? [30 points] Q2. Now visit the following web link and download the AUSTRALIA LEVEL “Country and Commodity Pivot Table 2006 to 2018” http://dfat.gov.au/about-us/publications/Pages/trade-statistical-pivot-tables.aspx a. From this table, get the Grand total of Exports and Imports for each of the FIVE COUNTRIES identified in Q1 for each of these three sectors separately, (i) Agriculture, forestry & fisheries, (ii) Minerals & fuels and (iii) Manufactures for all the years (2006 to 2018). Present these data in appropriate Tables clearly identifying the country names and sectors. b. Graph the above data separately for each country for exports and imports. Do you think that the Australian exports and imports for the country/products you have chosen support the predictions of the Heckscher-Ohlin theorem? Explain why or why not? c. Explain if Australia should concentrate on exporting some specific sector products or not. Give reasons for your answers based on the concepts or theories we have learnt in this unit. What strategies should Australia adopt to increase the volume of trade in your identified sectors? [30 points] Finally, answer the following question: Q3. Home produces two goods, computers and wheat, for which capital is specific to computers, land is specific to wheat, and labor is mobile between the two industries. Home has 100 workers and 100 units of capital but only 10 units of land. a. Draw a graph similar to what you have seen in the lecture slides with the output of wheat on the vertical axis and labor in wheat on the horizontal axis. What is the relationship between the output of wheat and the marginal product of labor in the wheat industry as more labor is used? b. Draw the production possibilities frontier for home with wheat on the horizontal axis and computers on the vertical axis. 2 c. Explain how the price of wheat relative to computers is determined in the absence of trade. d. Now draw a figure with the amount of labor used in wheat, measuring from left to right along the horizontal axis, and the amount of labor used in computers, moving in the reverse direction. e. Assume that as a result of international trade, the price of wheat rises. Analyse the effect of the increase in the price of wheat on the allocation of labor between the two sectors using the figure drawn in (d) above. NOTE THE FOLLOWING FOR THE REPORT: Presentation and Referencing: The report must be typed. Answers should be in full sentences, which have been checked for grammar and spelling. Marks will be deducted if your ideas are expressed poorly or are confused, and cannot be awarded if your expression is ambiguous. Data should be neatly presented in table and graph format where requested, with sources correctly documented. The tables and graphs should have a relevant title and each axis on the graphs should be correctly labelled. Sources of data should be acknowledged under each table and chart and fully documented using a reference list presented at the end of the assignment. Word limit: You are limited to no more than 3,000 words in total. The words in any graphs/diagrams, tables, equations, and the references do not count toward the word limit. Submission details: Submit an electronic copy of your assignment to the Drop Box in CloudDeakin, before 11:59 p.m. Friday 13th September, 2019. Make sure you receive an email confirming submission. Do not leave it until the last minute as CloudDeakin can become congested around submission time, and the drop box automatically closes at 11:59pm. Do NOT email assignments. Extensions: Extensions can only be approved by the Unit Chair. They are rarely granted and rarely for more than a few days, so do not depend on an extension. Extensions can be granted for documented serious illness (not just on the day the assignment is due!) or for compassionate reasons. Work or holiday reasons are NOT grounds for an extension – you are expected to 3 [20 points] manage these issues as part of your studies. You are strongly encouraged to start early and to continually backup your assignment as you progress. Computer crashes or corrupted files will NOT be accepted as valid reasons for an extension of any length. Note that CloudDeakin may not accept some file formats, including Excel files. You should upload one file only in either Word or (preferably) PDF format. Other Information: Please read carefully the University policy on ‘ACADEMIC HONESTY AND MISCONDUCT’ before you start working on your report. The direct URL is: http://www.deakin.edu.au/students/assessments/misconduct
