FIRST ESSAY

Explain (using diagrams) one of the conclusions of the Hecksher Ohlin model, called the Rybczynski theorem. If an economies abundant factor is growing, how does this impact on its trade pattern? Give a country example to illustrate this (70%). From a policy point of view, how would Strategic Trade Policy (STP) relate to this? (30%).

2200words MAX ( appendix NOT included in word count)

brake down of word use:

approx 1500words for:

Explain (using diagrams) one of the conclusions of the Hecksher Ohlin model, called the Rybczynski theorem. If an economies abundant factor is growing, how does this impact on its trade pattern? Give a country example to illustrate this (70%).

around 500 words for explanation:

From a policy point of view, how would Strategic Trade Policy (STP) relate to this? (30%).

MAKE SURE THE DIAGRAMS RELEVANT ARE USED AND EXPLAINED (Rybczynski theorem diagram)

. place diagrams in appendix.

USE 7 REFERENCES FOR THIS PART

SECOND ESSAY

2200words MAX (appendix NOT included in word count)

Critics of international trade from developing economies claim that present trading relationships between developed and underdeveloped countries can be a source of “anti-development” for the later and merely serve to perpetuate their weak and dependent status. Explain this argument. Would you agree or disagree? Explain why.

USE 7 REFERENCES FOR THIS PART

use diagrams if needed, place diagrams in appendix