2. From the following international trade theories select ONE from each group below and ev

2. From the following international trade theories select ONE from each group below and evaluate the extent to which the data in (1) above provides evidence in support of the chosen theories. (60%)

 Title: International Trade and International Finance

You are required to write an individual essay on the question below.

Essay Question

1. For a country of your choice, present data showing trends in its international trade over the past thirty years in terms of both products and countries traded with. (40%)

2. From the following international trade theories select ONE from each group below and evaluate the extent to which the data in (1) above provides evidence in support of the chosen theories. (60%)

Group a) Comparative advantage (Ricardo); Relative factor endowment (Heckscher- Ohlin).

Group b) Technology theories (Posner, Vernon); Demand based theory (Linder); Modern trade theory (scale economies, industrial structure, product differentiation).

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