Assignment:
INTERNATIONAL ECONOMICS: TRADE
INSTRUCTIONS FOR PAPER
BACKGROUND READING
The focus of this paper is the Trans Pacific Partnership (TPP) which is a trade agreement between 12 countries situated on the Pacific Rim. For this paper, you will study the trade relationship between United States and one other country on the list of TPP participants. You will conduct library research and read at least three scholarly articles about the trade relationship between these two countries in order to answer the questions listed below. Please list your sources.
STRUCTURE OF REPORT
You will submit a paper (2000 words). In the paper, discuss how the readings relate to what we are learning about international trade in the course. The paper should include the following:
a. List the major goods/services traded between the country you have been assigned to and your chosen country. Determine factor abundances of the two countries (you can use labor force statistics and either land or capital) and test whether the trade patterns match the predictions of the HO basic proposition.
b. Who will gain and who will lose from the TPP agreement between these two countries? Provide specific examples from the readings to substantiate your answer.
c. To what extent does the H-O-S theory and the Stolper-Samuelson theorem contribute and/or fail to contribute to our understanding of the impact of trade?