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Complete the following Assignment which has two parts: A and B PART A: Short Answer Questions (word limit: 1000 words) [Total 15 marks] 1. (i). Define and explain factor abundance as one of the...

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Complete the following Assignment which has two parts: A and B

PART A: Short Answer Questions (word limit: 1000 words) [Total 15 marks]

1. (i). Define and explain factor abundance as one of the drivers of international trade. [2.5 marks]

(ii). A multinational corporation investing in a foreign country may choose horizontal or vertical integration. Explain the difference between the two and provide an example where an Australia firm may choose one over the other.[2.5 marks]


2. Describe the trade barriers in place for importing a motor vehicle into Australia. Make sure to distinguish between tariff and non-tariff barriers. [5 marks]


3. Are labour and environmental standards in developing countries legitimate issues of concern or are they brought about by rising protectionist sentiments from the west. Provide a brief answer explaining your position, include some relevant examples. [5 marks]

PART B

Short Essay (word limit 1000) [15 marks]

One of the major world economy topics that is regularly covered in the media and research publications is China’s Belt and Road Initiative (BRI). In 2016 Australia launched Australia-China One-Belt, One-Road Initiative (ACOBORI) to investigate Australian opportunities and threats from China’s BRI. This initiative was developed by China to link Asia, Europe and Africa for trade purposes. Given that this is a China developed initiative, some countries are hesitant to join into the initiative.

Based on your research about the BRI, its goal and potential outcomes, should Australia be involved in the BRI? In answering this question, you should clearly outline what BRI is, explain its threats and opportunities for the Australian and international economy.

Rationale

This assignment is designed to assess your progress towards Learning Outcomes 2-6 and it is also meant to provide you some practice for the Final Exam.

Short Answer Questions (Part A) enables you to demonstrate your understand the international economics concepts, theories and problems in a practical set-up.

Short essay (Part B)provides an excellent opportunity for you to link theory with ‘real world’ application that makes the subject meaningful. It is also an opportunity for your to gain some research and academic writing skills.
This assessment item covers the Topics: 1, 2, 4, 5, 6, 7

Marking criteria

You will be assessed on accuracy as well as on your ability to write clearly and scholarly.
A detail marking criteria for assessing the quality of your work in Part B &C (short Answer questions and essay) are provided below.

Relevant learning objectives

HD (85%+)

DI (75-84%)

CR (65%-74%)

PS (50%-64%)

FL 0-49%



Academic Writing

Highly developed skills in expression and presentation of ideas.
Fluent writing style.
No major grammatical and spelling errors. All references, including recent literature, cited and used accurately.

Well-developed skills in expression and presentation of ideas. Fluent writing style.
No spelling errors, minor grammatical errors. Relevant references cited and used accurately.

A satisfactory standard of expression. Relatively clear and concise in expression of ideas.
Few spelling and/or grammar errors. Majority of references are presented and used accurately.

Some inconsistency in sentence structure. Clarity of expression could be enhanced by some revision. Many spelling errors and/or poor grammar.
Very limited references cited and used.

Poor communication of ideas due to careless writing and lack of proof-reading.
Too many spelling and/or grammar errors.
References not included or inappropriately applied.

Content & Knowledge of topic
(Includes: breadth/depth of essay topic and recent debates)

Excellent use of theoretical knowledge and ongoing debate, and they are well integrated. Contains insights and awareness of deeper and more subtle aspects of the topic content.
There is clear evidence of researched/read more widely beyond the core materials. Excellent use of relevant examples to support arguments.

Excellent use of theory and recent debate, but they are not well integrated.
Presents issues in the broader context and demonstrates breadth and depth of understanding of most aspects of the essay topic.
There is evidence of having read beyond the core materials.Very good use of relevant examples to support arguments.

Demonstrates knowledge of principles and concepts. Relevant key theories and ideas are included in the work in an appropriate manner.
Demonstrates good understanding of material presented in core texts and readings. Use of relevant examples to support arguments.

Contains limited use of theoretical knowledge. Fails to demonstrate awareness of ongoing debate.
While some literature is presented they purely descriptive and they are not well integrated. Some use of examples.

Fails to demonstrate knowledge of key principles and concepts. There is very little evidence of having read material presented in core texts and readings.
Contains only a few ideas and they are presented uncritically in a purely descriptive manner. Limited or no use of relevant examples.

Quality of arguments & analytical skills, and use of evidence

Provides well-argued and articulated statements with supporting evidence from literature and/or real world examples. Evidence of originality and independent thought.
Has highly developed analytical skills and consistently demonstrates high levels of critical analysis.
Demonstrates ability to reflect on conclusions and their implications.

Provides well-argued and articulated statements, but limited use of supporting evidence from literature and/or real world examples. Evidence of independent thought.
Has good analytical skills and is capable of good levels of critical analysis. Able to justify conclusions and their implications.
Able to synthesise and draw conclusions from multiple perspectives

Well-reasoned arguments based on broad evidence. Demonstrates some evidence of analytical and evaluative skills.
Able to apply fundamental concepts and to draw and justify conclusions.

Arguments based on limited evidence. Demonstrates some evidence of analytical and evaluative skills but development of arguments is limited.
Able to apply fundamental concepts and to draw and justify conclusions.

Little demonstrated evidence of ability to construct clear and coherent arguments. Little (or no) evidence of analytical and evaluative skills.
Fails to draw on fundamental concepts and to justify conclusions.

Presentation

Your assignment needs to be professionally presented and make use of section headings so that information can be quickly located. An introduction and conclusion are always needed. Please pay attention to grammar and spelling.

The following points are a general guide for presenting assessment items:

  • Assessment items should be typed.
  • Use 1.5 spacing.
  • Use a wide left margin. Markers need space to be able to include their comments.
  • Use a standard 12pt font such as Times New Roman, Calibri or Arial.
  • Left- justify body text.
  • Include a separate title page with your name, student number, subject code, assessment number and assessment question.
  • Number your pages (except the cover page).
  • Use a header or footer with your name and student number on each page.
  • Always keep a copy of your assessments. Both a hard copy and an electronic copy.
  • Most importantly, always use your spelling and grammar checker, but remember that this does not pick up all errors. You must still manually and carefully edit your work.

Requirements

As per the CSU Referencing Policy, assessment should be fully referenced. The Faculty of Business, Justice and Behavioural Sciences requires that students apply APA (American Psychological Association) referencing. If you are unsure of this style, please go to CSU Referencing website at http://student.csu.edu.au/study/referencing-at-csu.

Text:http://dl.iranidata.com/book/daneshgahi/Dominick%20Salvatore-International%20Economics(www.Iranidata.com).pdf

Answered Same Day Apr 30, 2020 ECO320 Charles Sturt University

Solution

Soma answered on May 04 2020
139 Votes
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PART A: Short Answer Questions (word limit: 1000 words) [Total 15 marks]
1. (i). Define and explain factor abundance as one of the drivers of international trade. [2.5 marks]
Factor abundance is one of the key driver of international trade that is explained in Hechsher -Ohlin model. A country is said to be labour abundance if the labour to capital ratio for the economy I found to be higher than the other. If the labour to capital ratio is higher in producing good X than in producing good Y, then good X is said to be capital intensive. A labour rich country like India has relatively more output produced in labour intensive goods. Moreover, they have less autarky price of labour intensive good and enjoys comparative advantage on it. (Princeton, 2010)
According to this H-O model, trade occurs between countries because of differences in factor abundance in different nations. Country X is said to be capital abundant if the following inequality holds:
qCX/qLX > qC1Y/qL1Y
Relative factor endowments determine country’s comparative advantage. A developed country like Australia is capital intensive and thus enjoys a comparative advantage in capital intensive goods. A country usually gains a comparative advantage in the good that uses abundant, cheap and locally available factor of production. Goods that uses local abundance factor is found to be cheaper than the goods that uses relatively expensive factor of production. (Princeton, 2010)
(ii). A multinational corporation investing in a foreign country may choose horizontal or vertical integration. Explain the difference between the two and provide an example where an Australia firm may choose one over the other.[2.5 marks]
Vertical integration occurs when the two business of different stage of production merge in the market. For example, if the food manufacturer merge with a supermarket giant then it is a vertical integration. It is a forward integration in the sense, merging would
ing the production process closer to the consumer. In contrast, horizontal integration occurs when two business in similar stage of production merge together. Whether a multinational firm will opt for vertical or horizontal integration, that depends on several factors. Vertical integration is common in oil industry and compute industry. In 1970s and 19980s, oil companies who were responsible for oil exploration decided to vertically integrated with downstream refineries and distribution network.
Two supermarket monsters in Australia, Coles and Woolworth controls 70-80% of the total market share. They are the dominating players in the market for long. The huge success of Coles and Woolworth largely depends upon their vertical integration strategy. When German supermarket chain Aldi enters the market and gradually expands, they provide a huge threat to profitability, sales growth and market share of Coles and Molesworth. The strength of Aldi comes from higher level of vertical integration than the existing supermarket chains. They provide strong focus on down down culture and target to the low-income consumers. Australia is gradually experiencing Aldi boom because they primarily interested on vertical integration and offer cheapest price. As far as vertical integration is concerned, Aldi has moved further than Coles and Woolworth. They have vertically integrated across the supply chain and offer deep discounting to the consumers at the expense of suppliers. (KEATING, 2015)
2. Describe the trade ba
iers in place for importing a motor vehicle into Australia. Make sure to distinguish between tariff and non-tariff ba
iers. [5 marks]
Automobile industry in Australia is cu
ently at the state of huge crisis. There is no domestic automobile production in Australia. The global car giants like Toyota and GM have shifted their plants from Australia to low cost destinations in Asia. They were unable to survive because of high cost of production in Australia. Moreover, due to elimination of trade ba
iers by reducing tariffs on imported cars, the auto producers were struggling to cope up with intense competition of cheap cars from china. The car industry has completely stalled in Australia. The tariff rate is one of the lowest in Australia for car industry. It is only 5% that is applied for passenger vehicle four-wheel drives as well as for commercial vehicles. For the countries that have a regional Tarde agreement with Australia, the tariff rate is even less than 5%. As the tariff rate has come down at 5% , big cars ahs announced their plans to leave out of the country. The elimination of trade ba
iers and setting the tariff rate only at 5% for imported cars force the BIG Three car makers to pull out of the nation. They have acknowledged the fact that, it is only possible to survive and remain competitive in the market only with significant trade ba
iers. Due to lowest tariff rate, Australian market is flooded with cheap cars from china and global car leaders find it difficult to compete with them. (Hutchens, 2014)
Following the closure of Australian car industry, there is a call for complete...
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