SECTION A (COMPULSORY) Word count guidance

Question 1. Expanding your country trade analysis from your essay which is Indonesia (a) Name the country you are focusing on (Indonesia) Compare and contrast the exports and imports for the two goods and two services industries that are the most important for your country's exports and imports. Describe the patterns, similarities and differences using a table of data for one year of your choice. Select and explain a trade theory that explains the services trade. Select and explain a trade theory that explains the goods trade. Make reference to the data in your table. (b) Identify one product/sector where an import tariff applies to restrict imports into your country. Briefly explain the tariff and the product/sector that it applies to. Show the data and source you used. Consider how this might affect consumer and producers in your country. Explain who gains and who loses. Expand your answer with a diagram showing the impact of gains and losses to consumers, producers, and the government. Consider one reason why the government of your country chooses to have this specific tariff. (c) Does your country have a fixed or flexible exchange rate? Explain and make reference to all your sources appropriately including the exact internet address (URL). Explain if the exchange rate for your country is volatile or stable. Use a graph or table with your currency against the US Dollar ($), Euro, or GBP () to show evidence to support your claim. Identify one point in time in the past 10 years where the exchange rate rose or declined suddenly. Explain with supporting evidence from news or other sources, what happened in your country to cause the sudden move in the exchange rates. (d) Identify and describe a primary commodity that figures prominently in your country's international trade. Provide the value of exports and imports of this commodity for the last year available, and provide evidence for the share of total exports and imports for this commodity in your country study. It can be a raw material, an agricultural product, a fuel, a metal etc. Then, examine whether your country has benefitted or been harmed by the commodities price boom of the 2000s, resorting on data on the net exports of the chosen commodity by your country throughout the first decade of the 21st century. (e) Identify and name two sectors (goods) where intermediate goods trade or intra-industry trade (IIT) is taking place for your country. Calculate the IIT index for two years of your choice for the two different sectors. Show your calculation. Explain what the IIT index calculation reveals. Explain two limitations with using the IIT index calculation and the IIT concept.