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Please answer ONE of the following questions.
1. To what extent have the predictions of the Heckscher-Ohlin trade model
been confirmed by empirical evidence and recent trade patterns? Answer
with reference both to the factor price equalisation theory and the role of
factor intensity in trade.
2. Using empirical evidence, analyse the extent to which trade is determined
in the context of imperfect competition rather than perfect competition. To
what extent are theories of agglomeration (economic clusters) consistent
with this evidence?
3. Are there any circumstances when tariffs are justified from an economic
point of view? Answer with reference to both theory and evidence.
SUBMISSION DEADLINE
1.00pm on Wednesday 7th November 2012
Please refer to the rules for submission
(which are in the Honours Handbook).
· Your answer must be succinct and to the point, i.e. no more than
2,500 words (excluding references, graphs and tables). The word limit
should be strictly observed, and penalty applies if the rule is broken.
· Please pay attention to the proper format of citations and
references.
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