- General instruction
You are required to write a report ( minimum 3,500 words ) to address all below questions :
Question 1 (Total 6 marks)
Governments may use tariffs as policy instruments in determining their international trade policies. However, imports tariffs have both positive and negative impacts on an economy.
In the context of the above statement, critical evaluate the effects of tariffs on an economy.
Question 2 (Total 6 marks)
The effects of trade liberalisation on development have been a subject of debate for centuries. Some economists argue that free trade is an engine of growth; while trade protection leads to wasteful use of resources. Conversely, critics argue that trade liberalisation has its costs and sometimes it could be detrimental to economic development. Therefore, governments are very cautious in determining their international trade policies through trade liberalisation.
In the context of the above statement, analyse:
Three arguments for trade liberalisation.
Three arguments against trade liberaliation.
Question 3 (Total 6 marks)
There have been nine rounds of international trade negotiations since the emergence of the GATT in 1944 trough to the formation WTO in 1995. The Uruguay Round of international trade negotiations has been successful in many aspects but has not achieved the major goals of free trade globally.
In the context of the above statement, critical analyse the success and failure of the Uruguay Round in achieving free trade in the global market.
Question 4 (Total 7 marks)
All governments consider their own political interests in designing international trade policies. They want their exports should have free access to foreign markets but do not allow foreign imports to have free access to their own markets. Therefore, developing countries applied import substitution trade policy for domestic industrialization in the post-WWII era.
In the context of the political economy perspective, evaluate the impacts of import substitution policy on developing countries’ domestic industrialization and international trade in the post-WWII era.
Question 5 (Total 6 marks)
Critically analyse the balance of payment of New Zealand Economy and explain how international trade may affect the balance of payment.
Question 6 (Total 7 marks)
Critically explain an equilibrium situation in the foreign exchange market and explain how exchange rate may influence exports and imports of New Zealand economy.
Question 7 (Total 6 marks)
Critically analyse the structure of international capital market and explain how trade may influence the growth of international capital.
Question 8 (Total 6 marks)
Critically analyse the evolution of international monetary system and explain its importance in international trade and investment.
