Choose any country of your interest and conduct the following analysis:

1. Give a brief overview of the country's economic profile and trade,

1. Country's GDP, income per capita, overall trade (export and import);
2. What is the country's openness index, i.e. export + import as a percentage of national income? It shows the country's integration to the world trade. What are the primary commodities it trades with? Do not go too much into detail here yet.

2.Analyze your chosen country's trade data through the lens of theories:

1. Determine trade patterns: what and whom does it heavily trade with?

• Does it specialize in trade with capital- or labor-intensive goods, or both?

What is the route of the trade for this country: North-north or north-south trade?

1. Is the country a recipient of FDI inflow or the country of origin for FDI outflow? Does it hold subsidiaries of multinational corporations? Or is it known for offshoring (relocating) its activities or manufacturing to other countries to take advantage of lower taxes, cheaper labor force etc.?
2. Which one or several of the following theories are able to explain the trade pattern of the country you have chosen? In what ways can they explain it? You can pick the most appropriate theory/theories (one or multiple) for your chosen case.

• Absolute advantages theory
• Differences in technologies and Ricardo's comparative advantage theory
• Factor endowment theory by Heckscher and Ohlin
• Economies of scale and imperfect competition, intra-industry trade
• Gravity model of trade

3. Trade policy and instruments:

1. Are there any formal trade agreements/block that the country belongs to? For example, Uzbekistan signed Most Favored Nation (MFN) Treatment with more than 45 countries, according to which lower customs duties might be applied and discriminatory practices are prevented within trading partners (just name those trade organizations or agreements).
2. What tariffs are in place for your chosen country? What are the highest and lowest tariff rates, and in relation to which products? (Example from Chinahttps://oec.world/en/profile/country/chn#tariffs).
3. Choose one of the main trading partners of the country you had previously chosen.

• Identify what they trade with each other, i.e. import and export structure. What does it reflect? North-north, intra industry, south-south, north south?
• Are they "small" or "large" in relation to their share in each other's overall trade? For example, in trade between Germany and France, Germany is the biggest supplier of cars for France. But for Germany the biggest market where the majority of its cars go is USA and China. So, France is a small market/country for Germany in the car industry. If France decides to impose tariffs, then Germany's car export might not be affected much as it can turn to other markets.
• Discuss the possible consequences/effects of the introduction of tariffs or subsidies for the country of your choice and its trading partner with a focus on a particular industry. For example, you can discuss who wins and who loses as a result of tariffs or subsidies and price changes. Use only one instrument: tariff or subsidies. You can refer to a real-world case when subsidies or tariffs were introduced and led to particular consequences.