100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
ECS3702 EXAM PACK ANSWERS () AND 2021 BRIEF NOTES $3.83   Add to cart

Exam (elaborations)

ECS3702 EXAM PACK ANSWERS () AND 2021 BRIEF NOTES

 37 views  3 purchases
  • Course
  • Institution

ECS3702 EXAM PACK ANSWERS () AND 2021 BRIEF NOTES

Preview 4 out of 292  pages

  • January 17, 2022
  • 292
  • 2021/2022
  • Exam (elaborations)
  • Questions & answers
avatar-seller
ECS3702 EXAM PACK ANSWERS
i i i




(2021 - 2014) AND 2021 BRIEF NOTES
i i i i i i i




ECS3702
INTERNATIONAL TRADE i




PASTEXAMPACKQUESTIONSANDANSWERS
i i i i i




(2019–2014) i i i




SUMMARISEDNOTES i




i 2021




Downloaded by: mpaimokhethi | mpaimokhethi@gmail.com
Distribution of this document is illegal

,Stuvia.com i- iThe iMarketplace ito iBuy i and iSell i your iStudy iMaterial




EXAMINATION MEMOS i




INTERNATIONAL TRADE i




ECS3702
MEMOS FROM 2019-2016
i i i




Downloaded by: mpaimokhethi | mpaimokhethi@gmail.com
Distribution of this document is illegal

, Stuvia.com - The Marketplace to Buy and Sell your Study Material




Question i1a
Briefly iExplain ithe iFollowing iterms
(a) Absolute iAdvantage
Absolute i advantage i is i the i ability i of i a i country i to i produce i a i greater i quantity i of i a
i goodior iservice iwith ithe isame iquantity iof i inputs iper iunit iof itime, ior ito iproduce ithe isame

iquantity iof ia igood ior iservice iper iunit iof itime iusing ia i lesser iquantity iof i inputs, ithan

ianother ientity ithat iproduces ithe isame igood ior iservice.

(b) Factor iIntensity
The irelative iimportance iof ione ifactor iversus iothers iin iproduction iin ian iindustry, iusually
icompared iacross i industries. iMost icommonly idefined i by iratios iof i factor iquantities

iemployed iat icommon i factor iprices,for i instance i we isay ithat icommodity iY i is icapital

i intensive i if ithe icapital–labor iratio i(K/L) iused i in ithe iproduction iof iY i is igreater ithan iK/L

iused i in ithe iproduction iof iX.

(c) Export iSubsidy
Export isubsidy iis ia igovernment ipolicy ito iencourage iexport iof igoods iand idiscourage
isale iof igoods ion ithe idomestic i market ithrough idirect ipayments, i low-cost iloans, itax

irelief i for iexporters, ior igovernment-financed i international i advertising. i Export

isubsidies iare idirect ipayments i(or ithe igranting iof itax irelief iand isubsidized i loans) ito ithe

ination’s iexporters ior ipotential iexporters iand/or ilow-interest iloans ito iforeign ibuyers ito

istimulate ithe i nation’s iexports.

(d) Customs iUnion
A icustoms iunion iis igenerally idefined ias ia itype iof itrade ibloc iwhich iis icomposed iof ia
i free itrade iarea iwith ia icommon iexternal itariff. iCustoms iunions iare iestablished ithrough

itrade ipacts iwhere ithe iparticipant icountries iset iup icommon iexternal itrade ipolicy i(in

isome icases ithey iuse idifferent i import iquotas).

(e) Transfer iPricing
It iis ithe iprice iat iwhich itwo irelated iparties itransact ibusiness ibetween ithemselves. iIt
io ccurs iwhen itwo irelated iparties idecide ibetween ithemselves ithe itransaction iprice,

iand isuch iparties i may iaffect ithe iprice i when iunrelated iparties itransact.




Question i1b
Question Answer
1 1
2 2
3 3
4 2
5 4
6 1
7 2
8 3
9 4
10 1

SECTION iB: iANSWER iALL iTHREE iQUESTIONS iIN iTHIS iSECTION.

QUESTION i2(a)
i




Assume ithat ithe icurrent idiscussion iin ithe icountry icenters ion ireducing ithe iflow iof
iChinese iapparel i into iSouth iAfrica ito ithe idebate i “should ithe iSouth iAfrica igovernment




1
Downloaded by: mpaimokhethi | mpaimokhethi@gmail.com
Distribution of this document is illegal

, Stuvia.com - The Marketplace to Buy and Sell your Study Material




decide ito iimplement ia ilimit ion ithe iimportation iof iapparels ifrom iChina, iSouth iAfrica
iapparel iproduction iwould i increase iand ithe icountry i will ibe i better ioff”




(i) Define ithe ieffective irate iof iprotection iand iexplain iwhy inominal itariff iis
isometime iconsidered ito ibe ideceptive iin iterms iof iprotection iaccorded ito idomestic

iproducers. i(5)

The ieffective itariff irate iof iprotection iis ithe ipercentage iincrease i in idomestic ivalue
iadded iper iunit iof ioutput imade ipossible i by ithe itariff istructure. iIt iis ia i measure iof ithe itotal

ieffect iof ithe ientire itariff i structure ion ithe ivalue iadded iper iunit iof ioutput iin ieach i industry,

iwhen i both iintermediate iand i final igoods iare i imported.

Sometimes iit iis iconsidered ito ibe ideceptive iin iterms iof iprotection iaccorded ito idomestic
iproducers, ibecause iof ithe i implication ithat ito iimpose itariffs i on iboth i imported iinputs

iand ithe i final iproducts iof ithe i industry iis iself

defeating ias ithe itariff ion ithe iimported iinputs ireduces ithe ieffective itariff iprotection ion
ithe ifinal igoods.




(ii) Using ithe iformula ibelow, ishow ithat iit iis ipossible ifor ithe ithe ieffective irate iof
iprotection ito ibe i(a) inegative iand i(b) iequal ito ithe inominal itariff irate ion ithe

iconsumers iof ithe ifinal icommodity iFormula ifor ithe ieffective irate iof iprotection.

(5)
g=(t-aiti)/1-ai
where ig i= ithe irate iof ieffective iprotection ito iproducers iof ithe ifinal
icommodity it i= ithe inominal itariff irate ion iconsumers iof ithe ifinal icommodity

ai i = ithe iratio iof ithe icost iof ithe iimported iinput ito ithe iprice iof ithe ifinal icommodity iinithe
iabsence iof itariffs

ti i = ithe inominal itariff irate ion ithe iimported iinput
(a) Negative
If iti i is i20%, itherefore:




(b) Equal ito ithe inominal itariff irate ion ithe iconsumers iof ithe ifinal icommodity
iIf it i i is i10% i instead




2 Downloaded by: mpaimokhethi | mpaimokhethi@gmail.com
Distribution of this document is illegal

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller UNISA1. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $3.83. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

82215 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling

Recently viewed by you


$3.83  3x  sold
  • (0)
  Add to cart