In this critical thinking assignment, you are required to address following three questions with sub questions: ((The chosen country is brazil ))
1) Why do countries impose trade barriers? This is a general question that should be answered from theoretical perspective, preferably using your textbook.
2) What is the effect of trade barriers on the following macroeconomic issues of the country that impose a trade barrier? I would recommend using textbook theory on a general economy which decides to impose a trade barrier (use your textbook extensively and cite it in your assignment). However, if you choose to answer these questions in the context of a given real country (other than KSA), feel free to do so. The macroeconomic effect should be analyzed on the following macroeconomic variables:
a. Trade balance. This means import, export and trade balance which is defined as (export-import)
b. The employment. You should focus on employment in sectors that are affected by the trade barriers. This could be both sectors which benefit from trading barriers and sectors that are hurt by trade barriers.
c. The economic growth. This specifically refers to the GDP of the country that imposes the trade barrier. You can analyze this by looking at sectoral outputs of sectors that are benefitted by the trade barriers and the sectoral output of the sectors that are hurt by the trade barrier. Finally, you can comment on whether the output growth (of the benefitting sectors) outweigh the output loss (of the hurting sectors).
- Choose any country other to provide the following rationale for that country: (Brazil)
a. Arguments in favor of adopting trade barriers for that : (Brazil)
b. Arguments against of adopting trade barriers for that : (Brazil)
You must follow the below:
To score well for the content, you will be required to show substantial and extensive knowledge of the topic with no errors or omission. That means you are required to show knowledge of the following:
a. Knowledge of the definition of trade barriers, types of trade barriers, how it is imposed and finally, why is it imposed. This could be exhibited by the proper use of various trade theories and citing your textbook or other academic sources.
b. Knowledge of how trade barriers effect the macroeconomic variables of a country adopting it on areas such as trade balance, employment, and economic growth. This could be done by using theoretical material (such as your textbook) or by providing empirical argument from peer-reviewed journal articles explaining the effect of trade barriers on a given country (Brazil)
c. Proper knowledge about the possible effect of trade barriers on a given country (Brazil) and therefore, being able to assess the arguments in favor or against the adoption of trade barriers for that country. This could be exhibited by showing correct data comparisons in a table or graphical form or by making data or policy references regarding the effect of trade barriers.
For the analysis, you will be required to provide strong thoughts, insights, and analysis of the effect of trade barriers in general and the effect on a specific country adopting it. This can be exhibited by the following:
- Present empirical evidence in support of your analysis.
- Critical analysis of the presented data in light to theory of trade barriers.
- Critical assessment of the arguments in favor or against adopting trade barriers based on empirical support.
For the sources, you are required to provide sources that strengthen your contents and analysis. This could be exhibited by the following:
- Cite at least 6 peer-reviewed journal articles.
- Cite your textbook or other textbook or theoretical information sources.
3. Cite and produce data or graphical illustrations.
Five pages in length, which does not include the title page and reference pages