Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hello, could you Explain your answer in words and using a diagram, Thank you. SECTION B Short answer questions. Background Imagine that you work for

Hello, could you Explain your answer in words and using a diagram, Thank you.

SECTION B

Short answer questions.

Background

Imagine that you work for the World Bank and you have been called to Ghana to aid the new president to come up with a new international trade strategy.

You are told that the new government is interested in moving away from agriculture and into manufacturing. To do so, the government wants to pursuit a policy of import substitution industrialisation (ISI).

You are given a brief about Ghana highlighting the following points:

  • About half of Ghana's population depends on agriculture, but Ghana still imports some of its food.
  • The majority of Ghana's people live in rural areas and exist on a subsistence way of life.
  • Ghana has one of the highest rates of income inequality in the world.
  • Nearly half of the population is employed in agriculture.

QUESTION B.1

Why would Ghana trade with a country that is very similar to it? Will trade between Ghana and an almost identical neighbour be governed by comparative advantage?

(5 marks)

QUESTION B.2

Explain import substitution industrialisation and how it can affect Ghana. What role does learning by doing play and when does it make sense for the government to interfere?

(5 marks)

QUESTION B.3

The parliament of Ghana is debating whether import substitution should take the form of quotas or tariffs. You are asked to brief them on the difference between the two. A representative from Ghana's National Labour Party is particularly worried about consumers? Which policy (tariffs or quotas) is better for consumers?

(5 marks)

QUESTION B.4

The president of Ghana is proposing increasing tariffs on rice and providing local rice producers with a subsidy. Explain to parliament the welfare implications of this from the perspective of consumers, producers and the government. Use diagrams to help your explanation.

(5 marks)

QUESTION B.5

After a meeting with Ghana's president you learn that the government is also interested in repatriating migrants that went to European countries to study engineering a decade ago. Explain how this is likely to change Ghana's comparative advantage.

(5 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Water Pollution Economics Aspects And Research Needs

Authors: Allen V Kneese

1st Edition

1317387554, 9781317387558

More Books

Students also viewed these Economics questions

Question

Define variable cost and fixed cost. Give an example of each.

Answered: 1 week ago

Question

Advantages and Disadvantages of Dividends and Buybacks

Answered: 1 week ago

Question

Explain the importance of Human Resource Management

Answered: 1 week ago

Question

Discuss the scope of Human Resource Management

Answered: 1 week ago

Question

Discuss the different types of leadership

Answered: 1 week ago

Question

Write a note on Organisation manuals

Answered: 1 week ago

Question

1. Why do we trust one type of information more than another?

Answered: 1 week ago