ECN 500 Global Economics Comparative Advantage Paper

ECN 500 Global Economics Comparative Advantage Paper

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Instructions:

ECN 500 Global Economics Comparative Advantage Paper

In a critical essay, you will select a country of your choice and will compare your chosen country to KSA in relation to the factor endowment theory. For each country, discuss:

What is the impact of resource endowments on comparative advantage?

Is the factor-endowment theory a good predictor of trade patterns?

What additional trade theories can be applied? Explain their main insights and challenges. As one of the trade initiatives in KSA, assess the aims of Saudi Vision 2030 in relation to factor endowment theory.

Cost Analysis Worksheet

An American producer of steel produces and sells his products in two geographic regions: at home (H) and abroad (F). Demand in those markets is different. Also, production costs in those two regions are different. The demand function on the home market is PH = 260 – 0,1QH, and on the foreign market is PF = 240 (illimited amount can be sold for the price 240 dollars). Cost function on the home market is: CH = 1000 + 0,4Q2H, and on the foreign market: CF = 5000 + 0,25Q2F.

a)The products can not be exported due to high customs duties. Calculate the amount of production and prices on home and foreign markets to maximize profit. What will be the profit?
b)The company can export without limits and transport costs are low. Answer now the question from point a.
c) Now suppose that transport costs are 16 dol. per ton. Answer the question from point a.

RUBRIC
Excellent Quality 95-100%	Introduction 45-41 points The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.		Literature Support 91-84  points The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.			Methodology 58-53 points Content is well-organized with headings for each slide and bulleted lists to group related material as needed. Use of font, color, graphics, effects, etc. to enhance readability and presentation content is excellent. Length requirements of 10 slides/pages or less is met.
Average Score 50-85%	40-38 points More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided.		83-76  points Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration.			52-49  points Content is somewhat organized, but no structure is apparent. The use of font, color, graphics, effects, etc. is occasionally detracting to the presentation content. Length requirements may not be met.
Poor Quality 0-45%	37-1 points The background and/or significance are missing. No search history information is provided.		75-1 points Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration.			48-1 points There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met
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