ECON 1086 Sydney University Economics Essay

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ECON 1086-body of report 1100 words +data analyse 

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ASSIGNMENT 2: Body of the report
2022/5/11, 20(36
ASSIGNMENT 2: Body of the report
Start Assignment
Due 20 May by 23:59
Points 30
Submitting a file upload
File types doc, docx, and pdf
Available 28 Feb at 0:00 – 1 Jul at 23:59 4 months
Course Name: Business in a Globalised Economy
Course Code: ECON1086
Assessment: Assignment 2: Body of the Report
Weight: 30%
Due date: FRIDAY MAY 20 AT MIDNIGHT
Feedback mode: ONLINE
Learning Objectives Assessed:
Understand how to merge data from various sources, undertake policy analysis, and generate policy briefs.
This assessment is linked to the following Course Learning Objectives (CLOs):
Manipulate economic models to analyse real world issues in international trade.
Analyse the fundamental determinants of the size and pattern of trade to verify its determinants and its e?ects on the
wider economy/welfare.
Compare and contrast economic and political conditions in poor and rich countries to critically assess the incentives and
consequences of trade liberalisation globally.
Assess the impact of protectionist policies on the welfare in rich and poor countries to decrypt the political economy of
trade reform.
Assessment Declaration:
I declare that in submitting all work for this assessment I have read, understood and agree to the content and expectations
of the Assessment declaration
(https://www.rmit.edu.au/students/student-essentials/assessment-and-
exams/assessment/assessment-declaration) .
Details:
Instructions for submission:
Click on Submit Assignment.
Click on Choose File.
Once you selected your file containing your assignment, click on Submit Assignment at the bottom.
Background:
In the first assignment you motivated a story about comparative advantage. In this section you will talk about trade and
inequality. You will then address the relationship between comparative advantage and inequality in a short conclusion.
To answer the assignment questions first get the data follow these steps.
https://rmit.instructure.com/courses/91537/assignments/673127
Page 1 of 5
ASSIGNMENT 2: Body of the report
2022/5/11, 20(36
1. This assignment requires you to obtain data from one country (1) of your choosing.
2. Obtain country-level data on trade (% GDP) from the World Bank’s World Development Indicators
(http://databank.worldbank.org/data/source/world-development-indicators).
3. Obtain data on industrial pay inequality di?erence from UTIP-UNIDO (http://utip.gov.utexas.edu/datasets.html).
4. DO NOT attach Excel files to the assignment.
5. Keep explanations brief. Policy analysis in applied economics has to be brief. Be precise and to the point, avoid jargon.
Assignment 2: Analytical background of the report
(30% of your ?nal grade)
*** Follow the instructions above on how to get the data.
*** See Chapter 6 and/or Lecture 6 notes for references.
1. Using data plot openness versus Industrial Pay Inequality (from UTIP-UNIDO) for the nation. IT’S UP TO YOU TO FIGURE
OUT HOW TO DO THIS. (10 marks)
2. Calculate the correlation (using excel) between openness and Industrial Pay Inequality (from UTIP-UNIDO) for the nation.
Report and interpret this relationship in approximately 300 words. [Hint: Correlation can be calculated using the CORREL
function: https://support.o?ce.com/en-us/article/correl-function-995dcef7-0c0a-4bed-a3fb-239d7b68ca92. The Theil Index
is used as a proxy for the ratio of skilled to unskilled wages in empirical studies]. DO NOT ATTACH YOUR DATA TO THE
ASSIGNMENT. (8 marks)
3. Explain carefully in approximately 500 words whether your data agrees or disagrees with the Stolper-Samuelson Theorem.
(Remember to accurately define the theorem and discuss how it applies to your country). (6 marks).
4. Conclusion: In 200 words explain how comparative advantage is linked to inequality in the country that you’re studying? (6
marks).
Applying for an extension:
If you are seeking an extension of seven (7) calendar days or less (from the original due date), you must apply and submit
this form by at least one (1) working day before the assessment deadline. The online form is available here.
(https://forms.o?ce.com/Pages/ResponsePage.aspx?
id=cTYy0b7NF0S01L2yS1Exax335T8jyWlNql7Rw3WTZCNURDE5UEgxRFVOQTdIQkE2NVNVTDNONkRITy4u)
If you need an extension of time beyond seven (7) days or if you have missed the one (1) working day requirement to submit
this request, you should apply for SPECIAL CONSIDERATION.
Additional information:
This video
(https://rmit.instructure.com/courses/91537/files/22883981/download?download_frd=1) gives you a bit more
information about each assignment.
https://rmit.instructure.com/courses/91537/assignments/673127
Page 2 of 5
ASSIGNMENT 2: Body of the report
2022/5/11, 20(36
Assignment 2 S2
Criteria
Question 1
(Graphs)
Question 2
Ratings
Pts
10 Pts
Graph
6 Pts
Graph
4 Pts
Graph
2 Pts
Graphs
0 Pts
Graph
Graph is properly labelled.
It is easy to read the axes
Graph is properly labelled. It
is easy to read the axes, but
Graph is
properly
Graph is not
properly
Graph does
not clearly
and to understand the
comparison being made. It
is easy to see trends in the
data or to see the
relationship between the
not to understand the
comparison being made. It
is not easy to see trends in
the data nor to see the
relationship between the two
labelled. It is
not easy to
read the
axes nor to
understand
labelled. It
may be easy
to read the
axes, but not
to understand
depict the
comparison
being
made and
they are
two variables of interest.
variables of interest.
the
comparison
being made.
the
comparison
being made.
not
properly
labelled.
2 Pts
Correlation coe?cient
1 Pts
Correlation coe?cient
0 Pts
Correlation coe?cient
coe?cients)
Correlation coe?cient for the country is
clearly stated.
Correlation coe?cient is not
expressed properly.
Correlation coe?cient is
not provided.
Question 2
6 Pts
Explanation
5 Pts
Explanation
4 Pts
Explanation
3 Pts
Explanation
2 Pts
Explanation
1 Pts
Explanation
0 Pts
Explanation
Student
states the
sign of the
Student
states the
sign of the
Student
states the
sign of the
Student
states the
sign of the
Student
states the
sign of the
Student
states the
sign of the
Explanation
given does
not make
correlation
coe?cient
and what
this means.
Student
correlation
coe?cient
and what
this means.
Student
correlation
coe?cient
and what
this means.
Student
correlation
coe?cient
and what
this means.
Student
correlation
coe?cient
and what
this means.
Student
correlation
coe?cient,
but fails to
explain
what this
sense.
makes a
note of
causality
between the
variables of
makes a
note of
causality
between the
variables of
makes a
note of
causality
between the
variables of
makes a
note of
causality
between the
variables of
does not
make a note
of causality
between the
variables of
means.
Causality is
discussed.
interest.
Causality
inferred
from
correlations
interest.
However,
causality
inferred
from
interest.
Causality
inferred
from
correlations
interest.
Causality
inferred
from
correlations
interest.
is
interpreted
correlations
is not
is
interpreted
is not
interpreted
correctly.
interpreted
correctly.
correctly.
The finding
is explained
correctly.
The finding
The finding
is not
The findings
are not
in terms of
economic
is explained
in terms of
explained in
terms of
explained in
terms of
theory.
economic
economic
theory.
theory.
theory or
theory is not
(correlation
(Explanation)
10 pts
2 pts
6 pts
used
https://rmit.instructure.com/courses/91537/assignments/673127
Page 3 of 5
ASSIGNMENT 2: Body of the report
2022/5/11, 20(36
properly.
Question 3
3 Pts
2 Pts
1 Pts
0 Pts
(Discussion
Theory
Theory
Theory
Theory
of theory)
Student presents a discussion
of the theory that is not
Student presents a
discussion of the theory
Student presents a
discussion of the
Student presents a
discussion of the
copied from the textbook or
other material, but is rather
that seems to be copied
or paraphrased from a
theory that is not
copied from the
theory that is clearly
copied from the
written in an accessible way.
textbook or other material.
textbook or other
textbook or other
The explanation is also
correct and consistent with
The explanation is correct
and consistent with what
material. It is,
however,
material, or it is
inconsistent with
what is taught in class and in
the textbook.
is taught in class and in
the textbook.
inconsistent with
what is taught in
what is taught in
class and in the
class and in the
textbook.
3 pts
textbook.
Question 3
3 Pts
2.5 Pts
2 Pts
1 Pts
0 Pts
(Application
Application
Application
Application
Application
Application
of theory to
countries)
Student clearly
indicates if the theory
Student clearly
indicates if the theory
Student clearly
indicates if the
Student
clearly
Student
discusses a
applies to the country
that they study and
applies to the country
that they study and
theory applies to
the country that
indicates if
the theory
case from a
country that is
why. The answer is
why. The answer is
they study and
applies to the
not studied. Or
driven by the data
analysis. Student uses
driven by the data
analysis. Student uses
why. The answer
is driven by the
country that
they study
student
indicates if the
economic intuition from
the textbook, lectures,
economic intuition from
the textbook, lectures,
data analysis.
Student uses
and why. The
answer is
theory applies
to the country
or other sources to
or other sources to
some economic
driven by the
studied, but
back up their
interpretation. Sources
back up their
interpretation. Sources
intuition, but
seems confused
data analysis.
Student does
the answer is
inconsistent
are cited properly.
are not cited properly.
about which
theory to apply.
not use
economic
with the
empirical
intuition.
findings.
Question 4
6 Pts
5 Pts
4 Pts
3 Pts
2 Pts
0 Pts
(Conclusion)
Conclusion
Conclusion
Conclusion
Conclusion
Conclusion
No marks
Comparative
Comparative
Comparative
Comparative
Comparative
Confused
advantage is
discussed for
advantage is
discussed for
advantage is not
adequately
advantage is
discussed, but
advantage is
not
or no
conclusions
the country that
is being
the country that
is being studied.
discussed for
the country that
not for the
country that is
discussed
for the
are
provided.
studied. The
The student
is being studied.
being studied.
country that
student then
explains how
then explains
how
The student
does explain
The student
explains how
is being
studied. The
comparative
advantage
comparative
advantage
how
comparative
comparative
advantage
student
does not
drives exports
drives exports
advantage
drives exports
explain how
and how that
a?ects labour
and how that
a?ects labour
drives exports
and how that
and how that
a?ects labour
comparative
advantage
markets. The
student cites a
markets. The
student does
a?ects labour
markets. The
markets. The
student cites a
drives
exports and
relevant theory
not cite a
student cites a
relevant theory
how that
https://rmit.instructure.com/courses/91537/assignments/673127
3 pts
6 pts
Page 4 of 5
ASSIGNMENT 2: Body of the report
2022/5/11, 20(36
or theorem to
explain the
relevant theory
or theorem to
relevant theory
or theorem to
or theorem to
explain the
a?ects
labour
relationship
explain the
explain the
relationship
markets.
between trade
and inequality.
relationship
between trade
relationship
between trade
between trade
and inequality.
and inequality.
and inequality.
Total points: 30
https://rmit.instructure.com/courses/91537/assignments/673127
Page 5 of 5
Report Introduction and Motivation
ECON1086 Business in a Globalized
Economy Assignment 1
Student Name:
Qian Liu
Student ID:
S3829406
Research Country:
Japan
Tutorial Time:
Friday 5.30 PM
Words Count (main text): 1059
Table of Contents
1.Introduction …………………………………………………………………………………………………………………………….. 3
1.1 International Trade and Globalization ……………………………………………………………………………. 3
2. Literature reviews ………………………………………………………………………………………………………………….. 4
2.1 Determinants of trade scale and trade model ………………………………………………………………….. 4
2.2 Imported fruits and vegetables in Japan …………………………………………………………………………. 4
2.3 Japan: exports of goods and services as a percentage of GDP(Openness) ……………………. 5
Appendix1………………………………………………………………………………………………………………………….. 5
Appendix2………………………………………………………………………………………………………………………….. 5
3. Methodology ………………………………………………………………………………………………………………………….. 6
3.1 GDP comparison between Japan and the Philippines…………………………………………………….. 7
Appendix3………………………………………………………………………………………………………………………….. 7
Appendix4………………………………………………………………………………………………………………………….. 8
Appendix5………………………………………………………………………………………………………………………….. 9
3.2 Japan’s comparative advantage against the Philippines …………………………………………………. 9
Appendix6: ………………………………………………………………………………………………………………………. 10
Appendix7: ………………………………………………………………………………………………………………………. 10
Appendix8: ………………………………………………………………………………………………………………………. 11
Appendix9: ………………………………………………………………………………………………………………………. 11
conclusion ………………………………………………………………………………………………………………………………… 14
Reference …………………………………………………………………………………………………………………………………. 14
Appendix ………………………………………………………………………………………………………………………………….. 16
1.Introduction
In the wave of globalization, while international trade and globalization bring
convenience and enjoyment to many countries, many countries also have impure
motives, such as destroying other domestic industries, and the consequences are
unimaginable.
This study will take Japan as the main research object, analyze the basic determinants
of Japan’s demand for imported fruits and vegetables, and compare the Philippines,
Japan’s main fresh fruit supplier. By comparing the costs and respective advantages of
computer society, this paper evaluates the impact of protectionist policies on two
countries with different development levels.
1.1 International Trade and Globalization
International trade is an unavoidable topic in the globalization wave of countries all
over the world. In this peaceful era, the simplest and most effective policy against a
hostile country is to implement economic sanctions. Then, as the most basic means for
a country to earn foreign currency, international trade is naturally one of the most
vulnerable means to be sanctioned by the enemy country.
Moreover, international trade enables countries to expand their markets and access
goods and services that may not be available at home. Due to international trade, the
market competition is more intense. This will eventually lead to more competitive
pricing and cheaper products for consumers (Heakal 2021).
Globalization is anything that can reduce the cost of international transactions.
Including transactions of goods, services, factors of production and financial assets.
Economists describe globalization as follows: When the Phoenicians developed squarerigged sails to trade throughout the Mediterranean, that was globalization (Jhon 2012).
2. Literature reviews
According to (Shikher 2012), the determinants of trade and specialization lie in both
supply and demand. The determinants of the supply side include productivity, factors
of production and trade costs.
2.1 Determinants of trade scale and trade model
The Kodansha Encyclopedia of Japan (Millard 2002) says: Japan is an island country
in East Asia. It spans an archipelago of 6852 islands, covering 377975 square
kilometers (145937 square miles). Japan is the 11th most populous country in the world
and one of the most densely populated and urbanized countries. About three quarters of
the country’s terrain is mountainous, with 125.44 million people concentrated on
narrow coastal plains. Japanese culture is well known worldwide, including its art, food,
music and pop culture, including the famous cartoon, animation and video game
industries.
2.2 Imported fruits and vegetables in Japan
It is precisely because of the small land area and the high degree of urbanization. At the
same time, one third of Japan’s terrain is mountainous, so it is impossible to Mass
planting grain, fruits, and vegetables. Therefore, Japan is extremely dependent on
imported fruits and vegetables.
According to the report of the US Department of agriculture (2018), from 2012 to 2017,
Japan imported 1.55 million tons to 1.65 million tons of fresh fruit every year. The
report shows that the main supplier of fresh fruit imported from Japan is the Philippines
(accounting for about 37.7% of the market share). The report shows that the Philippines
dominates about 37% of Japan’s fresh fruit and vegetable market.
2.3 Japan: exports of goods and services as a percentage of GDP(Openness)
Appendix1
Recent values
Resources from: www.theglobaleconomy.com
Appendix2
Longer historical series
Resources from: www.theglobaleconomy.com
Two appendices provide openness data for Japan from 1970 to 2020. During this period,
the average value of Japan was 12.65%, the lowest in 1995 was 8.82%, and the highest
in 2018 was 18.33%. The latest value in 2020 is 15.53%.
3. Methodology
Compare and contrast economic and political conditions in poor and rich countries to
critically assess the incentives and consequences of trade liberalization globally.
3.1 GDP comparison between Japan and the Philippines
Appendix3
Real GDP of the Japan in 2019:
Appendix4
$5099254 (million dollars)
Real GDP of the Philippines in 2019:
Appendix5
$929959.5 (million dollars)
According to the above figure, we can know, the GDP of the Philippines in 2019 was
4169294.5millon dollars less than that of Japan. This means the GDP between the two
countries is extremely different. Once one side has problems with the other side’s trade,
it will have a great impact on the people of the vulnerable country.
3.2 Japan’s comparative advantage against the Philippines
JAPAN:
2020-2021 Japan Exports of Fruit & Vegetables (JPY Million):
3647.117+3518.667+3310.823+3104.051+2604.834+3267.563+3339.575+5265.841+
5808.634+5057.468+7393.994=46,318.567(JPY Million) ?378.76 US million dollar
Appendix6:
Japan Exports of Passenger Cars one year:
(823114+681806)/2*12=9029520 JPY Million?73855.06 million US dollar
Appendix7:
PHILIPPINES:
2020-2021 Philippines Exports of vegetable, fruit, nut food preparations (US
Million): 774.11 US million dollar
Appendix8:
Philippines Exports of vehicles other than railway, tramway one year:
In 2020, the export volume of vehicles other than railways and trams in the Philippines
was US $951.4 million.
Appendix9:
Exports Fruit Vegetables
Exports Car
(US Million Dollar)
(US Million Dollar)
Japan
378.76
73855.06
Philippines
774.11
951.4
Opportunity Cost=
??????????????????
????????
Japan:
Opportunity cost of Producing Fruit & Vegetables:
378.76
73855.06
= 0.00512 unit
Opportunity cost of Producing Car:
73855.06
378.76
= 194.99 unit
Philippines:
Opportunity cost of Producing Fruit & Vegetables:
951.4
=1.229 unit
774.11
Opportunity cost of Producing Car:
774.11
951.4
=0.814 unit
Car
Japan
Philippines
Fruit & Vegetables
Comparative advantage is what determines the pattern of trade. According to the above
data, we know Japan have a comparative advantage in produce Car. Philippines has a
comparative advantage in produce Fruit & Vegetables. Therefore, Japan is bound to
export more cars and import more vegetables and fruits than the Philippines.
3.3 Harm of international trade liberalization
Trade liberalization can pose a threat to developing nations or economies because they
are forced to compete in the same market as stronger economies or nations (Banton
2021). When a country’s local related industries are not developed or cheap enough and
do not have high-cost performance, the local industries facing this challenge will not
stimulate domestic companies to improve efficiency and produce lower-cost products
but will be direct may stifle existing local industries.
conclusion
Trade liberalization can give substantial economic benefits. However, these benefits
may not be distributed equally. (Pettinger 2021). For example, if workers are highly
educated and can flexibly use their knowledge, it is easier for economies to change the
nature of production. However, if the labor market lacks flexibility, structural
unemployment will come with trade liberalization. As we all know, Japan is a
developed country with a high level of education and many highly educated labor forces.
Compared with underdeveloped countries such as the Philippines, Japan has a strong
ability to resist the consequences of trade liberalization.
Reference
Caroline B, 2021, Trade Liberalization, Investopedia, Updated March 24, 2021
URL:https://www.investopedia.com/terms/t/tradeliberalization.asp#:~:text=Trade%20liberalization%20can%20pose%20a,of%20newly
%20developed%20industries%20there.
Donna,M 2002, The Kodansha Encyclopedia of Japan, Online Information Review,
Vol. 26 No. 6, pp. 433-433.
URL: https://doi.org/10.1108/oir.2002.26.6.433.12
McLaren, J 2012, International Trade, 1st Edition, Wiley, New York. Available from:
ProQuest Ebook Central. [24 March 2022].
URL?https://ebookcentral.proquest.com/lib/rmit/reader.action?docID=5640165
REEM H, 2021, The investor’s Guide to Global Trade, Investopedia [online],
URL: https://www.investopedia.com/insights/what-is-international-trade/
[Accessed 24 March 2022].
Serge S,2012, DETERMINANTS OF TRADE AND SPECIALIZATION IN THE
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT
COUNTRIES, First published: 19 April 2012
Tejvan P, 2021, Trade Liberalization, Economics help [Blog] Reviewed on March 24th, 2022
URL: https://www.economicshelp.org/blog/glossary/trade-liberalisation/
USDA, 2018, [online], Japanese fresh fruit market overview 2018 (JA8709)
URL:
[Accessed 24 March 2022].
Appendix
Appendix1:
TheGlobalEconomy,2022, Resources from The World Bank, Japan Trade openness data
[online chart]
URL?https://www.theglobaleconomy.com/Japan/exports/
Appendix2:
TheGlobalEconomy,2022, Resources from The World Bank, Japan Trade openness data
[online chart]
URL?https://www.theglobaleconomy.com/Japan/exports/
Appendix3:
Penn World Table version 10.0 Excel
Variable name and Variable definition
Penn World Table version 10.0, updated On June 18, 2021
URL: https://www.rug.nl/ggdc/productivity/pwt/
Reviewed at March 24th 2022
Appendix4:
Real GDP of the Japan in 2019
Penn World Table version 10.0, updated On June 18, 2021
URL: https://www.rug.nl/ggdc/productivity/pwt/
Reviewed at March 24th 2022
Appendix5:
Real GDP of the Philippines in 2019
Penn World Table version 10.0, updated On June 18, 2021
URL: https://www.rug.nl/ggdc/productivity/pwt/
Reviewed at March 24th 2022
Appendix6:
Trading Economics, Japan Exports of Fruit & Vegetables, reviewed on March 24th,
2022
URL: https://tradingeconomics.com/japan/exports-of-fruit-vegetables
Appendix7:
Trading Economics Philippines Exports of vegetable, fruit, nut food preparations,
reviewed on March 24th, 2022
URL:https://tradingeconomics.com/philippines/exports/vegetable-fruit-nut-foodpreparations
Appendix8:
Trading Economics, Japan Exports of Passenger Cars, reviewed on March 24th, 2022
URL: https://tradingeconomics.com/japan/exports-of-passenger-cars
Appendix9:
Trading Economics, Philippines Exports of vehicles other than railway, tramway,
reviewed on March 24th, 2022
URL: https://tradingeconomics.com/philippines/exports/vehicles-not-railway-tramway
ECON1086 Assignment2.docx
by Qian Liu
Submission date: 18-May-2022 11:36AM (UTC+1000)
Submission ID: 1838751340
File name: ECON1086_Assignment2.docx (26.01K)
Word count: 1162
Character count: 7132
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ECON1086 Assignment2.docx
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