ACJC International Trade Tutorial

©ACJC Econs Dept/2023/International Economics Tutorial 1 Anglo-Chinese Junior College Department of Economics H2 International Trade TUTORIAL WORKSHEET Section A: Discussion Questions Question 1: International Trade Research Activity [Inquiry- Based Learning (IBL)] This is a group research activity aims to explore how different countries approach trade. The group’s research will be presented through google slides before sharing with your classmates. 1. Each group (4-5 students) to select one of the following countries: • Singapore • China • US • UK • United Arab Emirates • Germany • India • South Korea 2. Refer to the following website (or scan the QR code below) to find out the composition of GDP for your chosen country. Present the data in a chart on one slide (e.g. pie chart, bar chart) https://www.cia.gov/the-world-factbook/field/gdp-composition-by- end-use/ 3. Using a search engine, identify the top 10 exported goods and services of your selected country. Present the list of exported goods and services on one slide. 4. Using Gemini, a generative artificial intelligence chatbot, and type in the prompt “What is the [your selected country]’s policy approach to international trade?” Summarise the group’s findings into one slide. 5. Consider whether how the country’s composition of GDP may have affected their chosen policy approach and/or vice versa. Present your group’s response in one slide.

©ACJC Econs Dept/2023/International Economics Tutorial 2 Question 2: The Theory of Comparative Advantage Let us assume 2 countries, Vietnam and China, make 2 goods, bamboo baskets and necklaces. The table below shows how much of each product they could produce for a given volume of resources. Bamboo baskets weaved Necklaces made Vietnam 12 20 China 16 32 (a) Explain how free trade based on comparative advantage would allow both Vietnam and China to enjoy higher consumption of both products. (b) Suggest a way for the country with comparative disadvantage in necklaces to acquire the comparative advantage in this product. Question 3: Terms of Trade Figure 1: China’s terms of trade Figure 2: RMB to 1 USD With reference to Figures 1 and 2: (i) Define terms of trade. (ii) Describe the trend in China’s Terms of trade over the period Jan 2016 to Jan 2017. (iii) Explain one reason for the trend identified in (ii).

©ACJC Econs Dept/2023/International Economics Tutorial 3 Question 4: Protectionism EU hikes tariffs on India, Indonesia stainless steel imports The European Union will increase tariffs on stainless steel products from India and Indonesia after determining they benefited from unfair subsidies, including some from China under its Belt and Road investment programme. The European Commission, which conducted the investigation, has set the anti-subsidy duties on stainless steel cold-rolled flat products at rates of between 4.3% and 21.4%, the EU offic