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A Free Trade Agreement Assessment Answer

Task:

Question 1

Distinguish between the four different modes of Trade in Services. Illustrate your answer using relevant examples.

Question 2

What do you understand by the term “Comparative Advantage” and how is it different from “Absolute Advantage”? Are these concepts static or dynamic in nature? Illustrate your answer by using a suitable example.

Question 3

What do you understand by the term “Intra-industry trade”? What are the reasons for the existence of this kind of trade? Illustrate your answer by using suitable examples from a New Zealand industry.

Question 4

Outsourcing generates gains from international trade and benefits both the source and destination countries. True or False? Justify your answer with suitable country examples.

Question 5

What are the potential benefits to a host country in allowing operations of multinational corporations? Illustrate your answer by using a suitable example from an Asia-Pacific country.

Question 6

A free trade agreement with the European Union (EU) will bring benefits to New Zealand businesses and consumers. Discuss some of the areas in which New Zealand is negotiating with EU in the light of Brexit and what are the implications for New Zealand’s trade with UK and EU.

Question 7

Global trade tensions between the United States and other economies, particularly China has become an important impediment to foreign trade and investment, as economies retaliate over each other’s protectionist measures. What are the implications and impact on New Zealand trade ?

Question 8

What do you understand by the term Non-Tariff Barriers (NTBs)? Illustrate your answer with an example of a NTB used against any firm or industry that you are familiar with, highlighting its impact on consumers in the importing country.

Question 9

India represents large opportunities for trade and is a priority relationship for the New Zealand Government. What are the potential digital trade opportunities for New Zealand (considering the huge scope to raise the value of our services exports) and what is the current state of New Zealand-India FTA negotiations?

Question 10

What are the inherent risks involved for developing countries when they decide to rely on Export-oriented industrialization only as part of their growth strategies?




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