Exam (elaborations)
International Economic relations 2018 past paper for Loughborough University
- Institution
- Loughborough University (LU)
International Economic relations 2018 past paper for Loughborough University
[Show more]
Seller
Follow
Content preview
INTERNATIONAL ECONOMIC RELATIONS(17ECB005)
May/June 2018 3 Hours
Answer THREE questions.
All questions carry equal marks.
Candidates may use any approved calculator.
1. “We have a MASSIVE trade deficit with Germany… Very bad for U.S.” President Donald
J. Trump, Twitter, 30 May 2017.
President Trump’s tweet seems to imply that: A country with balanced trade should be
indifferent between free trade and autarky. Evaluate the italicised statement using the
Ricardian model. (100 marks)
2. (a) A-land contains a higher ratio of skilled to unskilled workers than does F-land. Use
the Heckscher-Ohlin-Samuelson and Stolper-Samuelson theorems to predict the effects
of free trade between A-land and F-land. (60 marks)
(b) For a country like A-land, what does the empirical evidence suggest concerning the
effect of trade liberalisation on earnings inequality? (40 marks)
3. (a) Use appropriate diagrams to compare and contrast how the imposition of an import
tariff by its government affects welfare in a small and a large country. (60 marks)
(b) “A key reason for the persistence of tariffs on imports is that the benefits they
generate are concentrated whilst their costs are dispersed.” Explain. (40 marks)
4. “The failure of attempts to explain global FDI flows at the macroeconomic level suggests
that the positive analysis of FDI should start with the special characteristics of the
multinational enterprise.” Evaluate this claim using MacDougall’s macroeconomic model
of, and Dunning’s microeconomic OLI approach to, foreign direct investment (FDI).
(100 marks)
Page 1 of 2
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller StudyMadeEasy. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £4.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67474 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now