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ECO203 International Economics SUSS Assignment Sample Singapore

ECO203 International Economics is an exciting course that explores the economic relationships and systems between countries. Across topics, it will introduce students to theories used by economists to study international issues like trade patterns, capital flows, and exchange rates.

Students will gain a stronger understanding of how global economies interact with the domestic economy, equipping them for future roles in research or policymaking. Whether considering a career in international relations or wanting to gain a better insight into economics as a whole, this course provides unparalleled value.

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Today, let’s go through some assignment briefs. We’ll be looking at:

Assignment Brief 1: Demonstrate how trade patterns occur and the gains from trade, using alternative trade theories.

Trade patterns generally reflect both the increasing cost of resources and a desire to capitalize on comparative advantage. Most prominently, traders will look to take advantage of lower material costs or larger economies of scale in the production process. This scenario is an example of classic free trade theory, which holds that allowing unrestricted access to goods and services increases economic growth and leads to increased incomes for all partners involved.

However, more modern alternatives reject completely laissez-faire ideology, recognizing instead that fairness and reciprocity are key. These more nuanced approaches attempt to balance the gains from trade with equitable policies that establish effective frameworks for creating mutually beneficial agreements between trading partners.

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Assignment Brief 2: Analyse the types and methods of trade restrictions and their implications on international trade.

Trade restrictions, typically put in place by countries to safeguard domestic industries or protect citizens from certain products, come in many forms. Tariffs are typically the most common type of trade restriction, which introduces taxes on imports and exports to provide a competitive advantage for domestic producers. Quotas can limit the quantity of a good that may be exported or imported, while embargoes stop trade altogether with a particular country or country.

As tariff and non-tariff methods create scarcity of material and delay supply chain processes, these types of restrictions can raise international prices of traded goods. Ultimately, this can greatly impede international trade growth and lead to increased hostility between trading partners.

Assignment Brief 3: Contrast the international macroeconomic policies under different exchange rate systems.

The exchange rate system plays an important role in determining how a nation’s economy functions. Nations with floating exchange rates, such as Japan and the United States, maintain their macroeconomic policies without adjusting the exchange rate, while nations with fixed exchange rates, such as those in the European Union, are required to adjust their macroeconomic policies in order to maintain a stable exchange rate.

Nations with floating exchange rates have more control over their monetary policies and can adjust interest rates and government spending according to their economic needs. On the other hand, nations with fixed exchange rates must often make adjustments through taxes or trade restrictions in order to maintain their desired currency level. Understanding the different international macroeconomic policies between these two systems is key for managing today’s global economy.

Assignment Brief 4: Interpret the balance of payments.

The balance of payments is an essential macroeconomic tool for assessing the financial health of a country. It is a record of all transactions between domestic inhabitants and foreign entities over a given period, typically a quarter or year. There are two primary components to take into consideration when interpreting the balance of payments: the current account and capital accounts. The current account involves those transactions associated with trade (imports and exports) while the capital account assesses investments, remittances and foreign debt.

Knowing these two factors provides insight into how much foreign currency is circulating within the economy and gives economists an idea of how competitive a nation’s product is in international markets. With this knowledge, policymakers can monitor macro-level economic trends, measure fiscal deficit/surplus, track global economic performance and make better decisions about their economic policy.

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Assignment Brief 5: Solve the exchange rate determination.

Finding a way to balance international exchange rates has been a challenge that economists have been trying to tackle for decades. The key is understanding the supply and demand of different currencies, as well as related factors like market speculation and government influences on those gains or losses. Interest rate adjustments, central banking policies, inflation differences, and the presence – or absence – of trade barriers can all play a part in creating choices with currency fluctuations. An appreciation of the many dynamic pieces at work here is key in helping to determine how exchange rates are determined and how they might be stabilized over time.

Assignment Brief 6: Relate international trade theories and policies to economic growth, development, historical crises, and future reforms.

International trade theories and policies have long been considered integral to achieving economic growth, development, and long-term financial stability. From the Physiocrats’ emphasis on free-market competition to 1980s neoliberalism ideals which advocated for deregulation, countries have implemented varied trade strategies in an effort to achieve desired economic objectives. These approaches are not without controversy, however.

History provides myriad examples of how misguided or mismanaged international trade policies can lead to significant economic turmoil with lasting consequences—from the impact of colonialism on indigenous populations to more recent downturns related to globalization. In order to avoid future crises caused by ill-conceived trade initiatives, a cohesive strategy must be developed and rigorously enforced. Such a framework should be comprised of open markets combined with tightened regulations and should focus on generating equitable results for those both domestically and abroad.

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