Student Number: (enter on the line below)
Student Name: (enter on the line below)
HI5016
INTERNATIONAL TRADE AND ENTERPRISE
FINAL ASSESSMENT
TRIMESTER 3, 2021
Assessment Weight: 50 total marks
Instructions:
• All questions must be answered by using the answer boxes provided in this paper.
• Completed answers must be submitted to Blackboard by the published due date and time.
Please ensure you follow the submission instructions at the end of this paper.
Purpose:
This assessment consists of six (6) questions and is designed to assess your level of knowledge of the key topics covered in this unit.

Question 1 (7 marks)
a. Define absolute advantage and comparative advantage. (3 marks)
ANSWER a): ** Answer box will enlarge as you type
b. Explain why Japan exports automobiles, while the U.S. exports aircraft? Use the prior definitions of absolute and comparative advantage to assist with your answer. (4 marks)
ANSWER b):
Question 2 (7 marks)
a. After the Seattle 1999 World Trade Organisation Ministerial Conference there were many demonstrations against the idea of globalisation. Why were these demonstrations mostly directed at the IMF? (4 marks)
ANSWER a):
b. Why do some marginalised groups in the USA and Canada reject the idea of globalisation? In answering consider NAFTA (North American Free Trade Agreement). (3 marks)
ANSWER b):
Question 3 (7 marks)
a. Explain how an export subsidy is theoretically meant to work. Think of the application to “infant industry”. (3 marks)
ANSWER a):
b. Why is it that most of these industries do not generate the overseas revenue and domestic profits and employment that were promised? (4 marks)
ANSWER b):
Question 4 (7 marks)
a. Define the gravity model. Specify the variables utilised. (2 marks)
ANSWER a):
b. Apply the gravity model to India and China. Why has it taken so long for India and China to become serious trading partners? Think of 18th century trade patterns, importation of raw materials back to the UK from their colonies. (2 marks)
ANSWER b):
c. Apply the gravity model to the UK in the year 2021. What countries are most important to the UK’s trade relationships? (3 marks)
ANSWER c):
Question 5 (11 marks)
a. What are the pressures that encourage MNEs to establish in newly industrialising countries? (4 marks)
ANSWER a):
b. What are the pressures that encourage politicians in newly industrialising countries to allow MNEs to establish in their countries? (4 marks)
ANSWER b):
c. How can MNEs act ethically in host countries? (3 marks)
ANSWER c):
Question 6 (11 marks)
a. What does the expression “marginal product of labour” mean? (3 marks)
ANSWER a):
b. Why do workers (skilled and unskilled) migrate from labour abundant countries to countries with a scarcity of labour? (4 marks)
ANSWER b):
c. How has that migration of labour been of advantage to other countries? (4 marks)
ANSWER c):
END OF FINAL ASSESSMENT
Submission instructions:
• Save submission with your STUDENT ID NUMBER and UNIT CODE e.g. EMV99220 HI5016
• Submission must be in MICROSOFT WORD FORMAT ONLY
• Upload your submission to the appropriate link on Blackboard
• Only one submission is accepted. Please ensure your submission is the correct document as special consideration is not given if you make a mistake.
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