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International trade, trade policy, and International financial position

•The objective of the research project is to apply the economic concepts and tools learned in this class to analyze one specific country with respect to its International trade, trade policy, and international financial position. •Typewritten Final Report(roughly 4,000 to 5000 words in length; about 8-10typewritten pages), excluding title page, charts, diagrams, figures, etc. Note: In each area of the report, you should compare your country to the U.S. You may (but are not required to) compare your country to other countries of your choice. •Introduction -Why did you choose this particular country?  -What do you expect to learn from the research? •Part 1 (based on Mini-Report #1): -Provide a statistical overview of your country’s national output and income; international trade; capital flows; and current account balance. -Compare your country to the U.S. along the same dimensions. •Part 2(based on Mini-Report #2): -Explain what is meant by a country’s “revealed comparative advantage” or “RCA”. -Explain how an RCA index is computed, and how to interpret an RCA index. -Provide a table listing the top 25 product categories (with the highest RCA indices) for your country and for the U.S. -Compare and contrast your country’s  RCA indices to those of the U.S. and briefly analyze how the two countries are similar or different. •Part 3(based on Mini-Report #3): -Provide a table summarizing the resource endowments and technological characteristics for your country and for the U.S. -Compare and contrast the resource endowments and technological characteristics of your country versus the U.S. -Based on your findings in Mini Report #2 and Mini Report #3, does your country seem to be trading in accordance with the predictions of the Heckscher Ohlin model? Briefly explain. •Part 4(based on Mini-Report #4): -Provide a table summarizing the trade policy (as measured by tariff rates)of your country and the U.S. -Compare and contrast the trade policy of your country versus the U.S. -Provide a table summarizing the extent of perceived corruption in your country and in the U.S. as measured by the corruption perceptions index (CPI).(It is important to gauge the extent of corruption since the existence of corruption may influence economic policy). -Compare the CPI for your country and the U.S. •Part 5(based on Mini-Report #5): -Provide a table summarizing the current account balance for the most recent five years for your country and for the U.S. -Briefly explain the implications of your country’s current account balance for its financial account and its level of foreign indebtedness, and do the same for the U.S. -Provide a table or graph showing the exchange rate during the last three years between your country’s currency versus the U.S. dollar. -What are the implications of the exchange rate fluctuations for various economic participants (such as consumers, importers, exporters, etc.) in your country and in the U.S.? •Summary and Conclusions -Briefly summarize some of the major lessons you have learned about your country’s economy and that of the U.S. from conducting this research. -Provide some “suggestions for future research ”that other scholars can pursue, based on the work  you have done.

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