ECON1086 Report On International Trade

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Assignment 2: Analytical background of the report:

1. Using data plot openness versus Industrial Pay Inequality (from UTIP-UNIDO) for the nation. IT’S UP TO YOU TO FIGURE OUT HOW TO DO THIS. (10 marks)

2. Calculate the correlation (using excel) between openness and Industrial Pay Inequality (from UTIP-UNIDO) for the nation. Report and interpret this relationship in approximately 300 words. [Hint: Correlation can be calculated using the CORREL function: https://support.office.com/en-us/article/correl-function-995dcef7-0c0a-4bed-a3fb-239d7b68ca92. The Theil Index is used as a proxy for the ratio of skilled to unskilled wages in empirical studies]. DO NOT ATTACH YOUR DATA TO THE ASSIGNMENT. (8 marks)

3. Explain carefully in approximately 500 words whether your data agrees or disagrees with the Stolper-Samuelson Theorem. (Remember to accurately define the theorem and discuss how it applies to your country). (6 marks).

4. Conclusion: In 200 words explain how comparative advantage is linked to inequality in the country that you’re studying? (6 marks).

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