ECO203e International Economics Assignment Help – A voluntary export restraint (VER) seems like an oxymoronic non-tariff barrier, Singapore

SECTION A (Total 65 marks)

Question 1

The table below shows the factor endowments in the US and China and their production of aircraft (as capital-intensive) and textiles (as labour-intensive):

Construct and explain the two (2) countries’ respective production possibility frontiers and explain with the standard trade model (based on comparative advantage, factor-endowment theory and related concepts) how trade between them takes place. Discuss with diagrams on how the Hecksher-Ohlin (HO) theory further extends the standard trade model in a more realistic and complex world. (20 marks)

Question 2
A voluntary export restraint (VER) seems like an oxymoronic non-tariff barrier. Do you agree and why? One (1) example is when Japan adopted a VER for its automobile exports to the US in the 1980s. Discuss how such a VER differs from other protective barriers using the same case for US-Japan trade. Explain and evaluate why Japan offered the VER and what US automobile makers should do as a better strategy. (15 marks)

Question 3
Should the Association of Southeast Asian Nations (ASEAN) move on from being a free trade area for goods and services to become a customs union? Compare the costs and benefits of the free trade area and the customs union, taking into consideration the diverse levels of international trade and investment in the ten members in the ASEAN. Explain whether import-substitution or export-orientation is more suitable for Singapore’s growth and trade policies. (15 marks)

Question 4
Discuss the differences between a fixed exchange rate system and a flexible exchange rate system. Analyse the effects of an expansionary monetary policy as more suitable for a relatively flexible exchange rate regime such as Singapore with a suitable diagram. (15 marks)

SECTION B (Total 25 marks)
Prepare a video recording of the presentation of at least 3 minutes but not exceeding 6 minutes. There are two methods for ECA video assignment submission; either Record Media or Upload Media. For Upload Media, please note that your file size should be no more than 500MB and the format is in .mp4. (25 marks)

SECTION C (Total 10 marks)
Prepare a set of PowerPoint presentation upon which the video presentation is based. Please note that the PowerPoint must be converted to PDF before submission to Canvas. (10 marks)