Page 1 of 2 ECON847, Session 2, 2013: Online Assignment Important Instructions: • Due Date: Students are to submit an electronic copy AND a hard copy of the assignment. The Electronic Copy must be submitted online (iLearn ECON847 website) by 9am, Monday the 14th of October. Students must also submit a HARD COPY to BEGC by 4.30pm. Students are asked to hand in their hard copy of the assignment over the counter on the second floor of the Faculty of Business and Economics (BEGC). Please note that it will be the electronic copy that will be considered as your submission assignment. • Failure to submit the electronic copy by the due time and date will result in a mark of zero. IT problems will not be an acceptable excuse. The hard copy MUST have a cover sheet attached to it when submitted to BEGC. This cover sheet must be correctly filled in and signed. BEGC will not accept any assignments that do not have a cover sheet. • Your assignment MUST be your own work. Turnitin will be used to inspect every student assignment that is submitted online. Please refer to Macquarie University academic honesty policy http://www.mq.edu.au/policy/docs/academic_honesty/policy.html. • Students are to answer ALL (5) questions and MUST keep within the word limit. • Students are to upload a single Word Document including all answers to the five questions. • All questions are of equal value and the electronic copy can only be submitted once. Assignment Questions: 1. Does intra-firm trade contradict the theory of comparative advantage? Why or why not? (Maximum 100 words, 4 Marks) 2. If world prices decrease, the current account balance of the importing country will improve. True or false? Explain. (Maximum 100 words, 4 Marks)
Page 2 of 2 3. Suppose Spain were to open its doors to a large number of unskilled Africans seeking to immigrate. In general, what effects would you expect to see in Spain’s trade patterns and its comparative advantage? (Maximum 100 words, 4 Marks). 4. “The objective of…