MST28 Which of the following statement about trade in parts and components (P & C) and global value chains is INCORRECT?

a.

Though trade plays a more and more significant role, growth in world trade is much smaller than growth of World GDP.

b.

Trade in intermediate products (P&C) is extremely important for East and Southeast Asian industries, such as electrical machinery, transportation equipment, and automobiles.

c.

Regional production sharing networks interact and supply one another, leading to an expansion of two-way trade in P&C.

d.

At the moment, almost nothing is totally 'made in a single country'.

MST 30 Which of the following interpretations to information presented in Figure 2 below is INCORRECT?

a.

Economies located on the top left corner in the figure (e.g. Cambodia, Bangladesh, etc) have highest annual working hours and lowest GDP per capita, which means they have lowest labour productivity.

b.

Economies located on the top right corner in the figure (e.g. Singapore, Hong Kong, etc) have highest annual working hours and highest GDP per capita, which means they have highest labour productivity.

c.

Economies located on the bottom right corner in the figure (e.g. Switzerland, Netherlands, etc) have lowest annual working hours and highest GDP per capita, which means they have highest labour productivity.

d.

Economies located in the top middle area of the figure (e.g. China, Indonesia, Malaysia, etc) have highest annual working hours and moderate GDP per capita, which means they have average to low labour productivity.

MST31 Which of the following is NOT a challenge for Chinese economy in sustaining the accelerated rate of economic growth?

a.

The income gap has widened, and the regional disparity has increased.

b.

Excess capacity of manufacturers.

c.

Rising labour cost

d.

Environmental degradation (although China is heavily investing into renewable energy).

MST32 Chinese manufacturers have the capability to significantly undercut prices offered by foreign competitors over a wide range of products. Which of the following are drivers of 'China price'?

i. Low wages for high quality work

ii. Piracy & counterfeiting

iii. A chronically overvalued currency

iv. Export subsidies

a.

i, ii, iii

b.

i, ii, iv.

c.

ii, iii, iv

d.

i, iii, iv

MST33 Which of the following statements about 'Gini Coefficient' is INCORRECT?

a.

Gini Coefficient measures both relative and absolute poverty.

b.

The key strength of using 'Gini Coefficient' is its full inclusion of all values in the data series.

c.

The key weakness of using 'Gini Coefficient' is the difficulty to calculate/interpret

d.

A Gini of zero means perfect equality, and a Gini of 1 means most extreme inequality (a single member of the population holds all of a resource)

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