12 Section B: Essay Question [55 marks] In the last two decades, one of the central changes in world trade were the rapid growths in exports from newly industrializing economies. With your knowledge of the trade models, discuss how changes in the terms of trade and economic growth will affect the welfare of nations engaged in international trade (Text Reading: Krugman et al., 2018: 151-178, i.e. Chapter 6). Hint: Use empirical evidence/studies (academic articles) to support your arguments. Use the library resources to download the related empirical studies. Criteria The layout of the essay should be presented using the following format: Section 1: introduction [5 marks] In this section you are expected to provide a general background story on how terms of trade and economic growth affect welfare of countries. Highlight the research questions. Discuss your objectives. Provide the layout of the paper. Section 2: Literature survey [20 marks] In this section you are expected to critically analyse relevant studies (at least 5 academic journal articles) that directly or indirectly analyse the impact of terms of trade and economic growth on a country's welfare. In doing this, you need to indicate the purpose of each study you cite, how the analysis was comprehended and the findings. Section 3: Theoretical framework [10 marks] In this section you are expected to provide a theoretical framework that provides explanation about the welfare effects of changes in the terms of trade and economic growth (e.g framework discussed in the prescribed textbook). Do not copy directly from the textbook. Section 4: Suggested Implications [10 marks] Having discussed the literature survey, theoretical framework and provided your arguments, what are the suggested implications? You can draw your implications from the reviewed literature. Section 5: Conclusions [5 marks] Provide a summary of your arguments.12 Section B: Essay Question [55 marks] In the last two decades, one of the central changes in world trade were the rapid growths in exports from newly industrializing economies. With your knowledge of the trade models, discuss how changes in the terms of trade and economic growth will affect the welfare of nations engaged in international trade (Text Reading: Krugman et al., 2018: 151-178, i.e. Chapter 6). Hint: Use empirical evidence/studies (academic articles) to support your arguments. Use the library resources to download the related empirical studies. Criteria The layout of the essay should be presented using the following format: Section 1: introduction [5 marks] In this section you are expected to provide a general background story on how terms of trade and economic growth affect welfare of countries. Highlight the research questions. Discuss your objectives. Provide the layout of the paper. Section 2: Literature survey [20 marks] In this section you are expected to critically analyse relevant studies (at least 5 academic journal articles) that directly or indirectly analyse the impact of terms of trade and economic growth on a country's welfare. In doing this, you need to indicate the purpose of each study you cite, how the analysis was comprehended and the findings. Section 3: Theoretical framework [10 marks] In this section you are expected to provide a theoretical framework that provides explanation about the welfare effects of changes in the terms of trade and economic growth (e.g framework discussed in the prescribed textbook). Do not copy directly from the textbook. Section 4: Suggested Implications [10 marks] Having discussed the literature survey, theoretical framework and provided your arguments, what are the suggested implications? You can draw your implications from the reviewed literature. Section 5: Conclusions [5 marks] Provide a summary of your arguments.