Economics 4431W
Spring 2006

Homework 1

Distributed January 26, 2006
Due in Class February 2, 2006

No late assignments will be accepted. Assignments must be typed.

1. (10 points) You need to provide details about U.S. international trade:

a. Compare the composition and destinations of the top ten U.S. exports in 1984 with those in 2004. What are the major differences and why?
b. Compare the composition and sources of the top ten U.S. imports in 1984 with those in 2004. What are the major differences and why?
c What is the degree of economic interdependence/openness (calculate this for all years - 1984-2004)? Please use the formula used in class.

Instructions :
Attach the data to your work.
Use the internet to get data on US merchandise trade for the last 20 years.
Mention the path you take and the sources used (i.e. the University of Michigan website - Foreign Trade; U.S. Department of Commerce; U.S. Census Bureau).

( Hint: Try the Resource Links section on the course web page.)

2. (10 points) Identify a current (January 2006 only) international economics news item concerning countries other than the United States . Please make sure that the event has recently happened elsewhere (NOT IN THE UNITED STATES), and it is also related to international economics.

A. What is (or what will be) the effects of this economic event on the U.S. economy? Mention this very clearly and give all the effects.

B. What will be the effect on you personally?

Instructions:

Attach the article to your answer.

Use the internet (Mention the URL). Some sources are:

New York Times CNN News The Star Tribune other newspapers, magazines. You can also use the search feature in your browser.

3. (10 points) Compare China and India . Please answer these questions:

a. Compare their degree of openness over the last twenty years (Calculate it for both nations for all years). Why do you think it has increased or decreased for each country?

b. Compare the export patterns of the two countries over the last twenty years. Give reasons for similarities or differences.

Instructions:

Find a data source, the IMF's International Financial Statistics Yearbook . The International Financial Statistics are available on the U library website at http://govpubs.lib.umn.edu/ . Click on IFS Online , and then on the help (?) button for help on using the search engine. You can also use the United Nations Statistics Division for data.

Attach your data to your answer.

4. (10 points) On a world map, label the following:

Australia, Bahrain, Chile, Croatia, Davos (Switzerland), Dominica, Egypt, France, Finland, Greece, Haiti, Hungary, Hong Kong, Iran, Israel, Jordan, Kyrgyzstan, London (U.K.), Liberia, Malaysia, Morocco, New Delhi (India), Oman, Portugal, Poland, Qatar, Russia, Singapore, Sudan, Turkey , Tunisia, Ukraine, Venezuela, Washington D.C., Yemen, Zimbabwe, and all the oceans.

Instructions:

You can make a reasonably accurate free hand drawing or use a pre-printed map outline. Do not use a map that already has the countries listed. Please make sure the map is large enough.

5. (10 points) A. Write a note on the ongoing WTO trade talks (the Doha Round). What are the main issues facing the Doha Round with regard to agriculture? B. Suggest at least two measures to improve the world agricultural trade system.

IMPORTANT

1. Your assignment must be typed, except for the tables and graphs.


2. Attach your data/article/information to the assignment.
   
3. You must use the internet to obtain the information and data for questions 1 and 2. If you use other sources, your grade will be reduced by 25%.