Assignment 1 consists of five questions. Each question is worth 20 marks. Assignment 1 constitutes 15 percent of your final grade. You should complete, and submit this assignment after you have completed all the learning activities for Unit 2.

Question 1: What are the economic impacts of encouraging a free, competitive market to exist in an economy?

Question 2: Re-read the case "Economic Transformation in Vietnam," and answer the following questions:

a)Why did Vietnam experience a low economic growth rate in the decade after the end of the Vietnam War in 1976?

b)The level of public corruption in Vietnam is high. Why is this the case? How do you think this affects Vietnam's economic performance? What should the government do about this?

Question 3: Discuss the following statement: "Free market economies stimulate greater economic growth, whereas state-directed economies stifle growth."

Question 4: Discuss the following statement: "Falling barriers to international trade destroy manufacturing jobs in wealthy advanced economies." Do you agree? Why?

Question 5: Re-read the Country Focus on moving white-collar jobs offshore, and answer the following questions:

a)Who benefits from the outsourcing of skilled white-collar jobs to developing nations? Who are the losers?

b)Will developed nations like Canada suffer from the loss of high-skilled and high-paying jobs?

c)Is there a difference between the transference of high-paying white-collar jobs, such as computer programming and accounting, to developing nations and the transference of low-paying blue-collar jobs? If so, what is the difference, and should government do anything to stop the flow of white-collar jobs out of the country to developing countries?