ECO203e: Summarise Trade Creation and Trade Diversion and Analyse the Dynamic: International Economics Assignment, SUSS, Singapore

Question 1

• Summarise trade creation and trade diversion and analyse the dynamic benefits of a customs union with appropriate diagrams.
• For the Association of Southeast Asian Nations (ASEAN) only at its current stage as ASEAN Free Trade Area (AFTA), discuss whether it should move on to a customs union.

Question 2

Explain the relationship between the exchange rate and the balance of payments.

Question 3

Show income determination in a closed economy in contrast to an open economy using the concepts of income as determined by injections (like investment and exports) and leakages (like saving and imports). (Hint: discuss in words like Singapore, with a high reliance on international trade and capital flows, is an open economy)

Question 4

Appraise the adjustable peg, crawling peg, and managed floating exchange rate systems and elaborate on how the Monetary Authority of Singapore (MAS) conducts its monetary-exchange rate policy (a diagram is useful).

SECTION B

Prepare a video recording of the presentation on Question 3 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.

SECTION C

Prepare a set of PowerPoint presentations upon which the video presentation is based. Please note that the PowerPoint must be converted to PDF before submission to Canvas.