Detailed requirements of the assignment

You are a group of advisors to the working in the Department of Trade and Foreign Affairs in Australia. As advisors you are first, required to research from a topic of your choice from the following covering the previous 5-10 years.

Research Paper 1 Topics

1. Comparative advantage

• Choose any two countries chosen from the list of countries listed in Annex 1. For each country, identify an industry or industries in which the chosen countries have comparative advantage. You must use relevant data/statistics to support your analysis used in the identification
• Explain the reasons/sources of the comparative advantage in each of the chosen countries
• Suggest ways to improve the comparative advantage in each country
• Reasons for the flow of trade and investment, the factors affecting the industry or industries and how Australia can benefit from these countries

1. Terms of Trade

Choose any two countries from the list of countries listed in Annex 1. For each country, analyse its terms-of-trade trend over the last 10 years using relevant facts/figures

Identify and analyse factors affecting the trend in the terms-of-trade for each of the chosen countries

Analyse how the terms-of-trade affect welfare in the chosen countries Advise the Minister on any benefits from these countries to Australia

Export Subsidies in Agriculture, Wind/Solar energy industry

Choose either an agriculture or a wind/solar energy industry from any country listed in Annex 1 that currently provides export subsidies to the industries. Discuss positive andnegative aspects of the export subsidies on the country's economy.

Evaluate the effects of the export subsidies on the country's welfare using relevantsupporting data/statistics and literature

Examine the effects of effects of the subsidies on Australia (Only applies if the country chosen is not Australia. However, if the country is Australia explain the effects of the subsidies to other countries)

Pattern of Trade

Choose any two countries from the listed countries in Annex 1. For each country, describe its pattern of trade over the last 30 years using relevant data

Identify and analyse factors responsible for a changing trade pattern in the chosen countries In your opinion, discuss if your findings conform with what the trade theories predict

Examine the effects of the pattern of trade on Australia (Only applies if the countries do not include Australia. However, if the countries include Australia explain the effects of the pattern of trade on other countries)

The two countries I am working on is Australia and Ethiopia