7ECON006W International Economics

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Module Title:                                                              International Economics

Module Leader:                                                          Ola Sholarin

Release Time:                                                13/01/2021 10:00 GMT Submission Deadline:                                            14/01/2021 

Instructions to Candidates:

Please read the instructions below before starting the paper

  • Module specific information is provided below by the Module Leader
  • The Module Leader will be available in the first hour of timed release to respond to any queries via a discussion board on blackboard
  • As you will have access to resources to complete your assessment any content you use from external source materials will need to be referenced correctly. Whenever you directly quote, paraphrase, or summarise someone else’s ideas, you have a responsibility to give due credit to that person for their work. Support can be found at https://www.westminster.ac.uk/current-students/studies/study-skills-and-training/researchskills/referencing-your-work
  • This is an individual piece of work so do not collude with others on your answers as this is an academic offence.
  • Plagiarism detection software will be in use
  • Where the University believes that academic misconduct has taken place the University will investigate the case and apply academic penalties as published in Section 10 Academic Misconduct regulations.
  • Once completed please submit your paper via the submission link provided. You should only submit once.  If, in cases of technical difficulties, you submit more than once the second document uploaded will be accepted and marked as your final submission.
  • Work submitted after the deadline will not be marked and will automatically be given a mark of zero


Module Specific Information

Word count guidance: 3000 words maximum in total. This is equivalent to about 300 words for every 10 marks or about 1000 words for every 35 mark question.

Please minimize use of tables or diagram where possible and concentrate more on critical analysis.

If you use diagrams or scanned material, a clear picture of these with source must be provided, using your phone or any other portable device.

Please save and upload your work using Microsoft word with font size 12.

SECTION A:  Question 1 is compulsory and worth in total 30 marks.

Question 1


Answer ALL PARTS of this question


  1. Following Brexit, the level of unemployment in the UK is projected to rise steadily. Discuss the economic impacts this is likely to have on the British economy.
    • marks)


  1. With reference to Heckscher-Ohlin (HO) theory, discuss the meaning of Leontief Paradox and discuss the possible reasons given to justify the paradoxical outcome.
    • marks)


  1. Discuss how trade creation and trade diversion could be (1) beneficial and (2) economically damaging for a country joining the European Union.
    • marks)


(Total: 30 marks)



SECTION B: Answer ANY Two questions from this section. Each question is worth 35 marks


Question 2


The amount of Foreign Direct Investment (FDI) flowing into China has risen dramatically over the last three decades, providing the much needed capital to fuel China’s economic growth. Critically examine why China appears to be more successful in attracting international investors compared to Japan or Germany.

(35 marks)


Question 3


Discuss how an import tariff is likely to affect trade, consumption, production and government revenue in an open economy. How does an import tariff compare with an export quota as a tool for controlling international trade flows? Use appropriate diagrams to support your arguments.

 (35 marks)


Question 4


What economic theories are there to justify the rise of China, which, from a major importer of electronic products a few decades ago from USA and Japan, has been transformed into a world-class exporter of sophisticated electronic products in recent years?  Support and justify your argument with diagrams where appropriate.

(35 marks)


[Questions continue on the next page]


Question 5


Discuss the concept of economies of scale and its relationship to David Ricardo’s theory of comparative advantage. Critically examine how trade amongst nations could accelerate their pace of economic growth. Discuss how the same trade could be detrimental to economic development of a single nation.

(35 marks)


Question 6


Critically examine ways in which Multinational Corporations could accelerate economic development of a nation. Why are these multinational corporations successful in some countries but fail in others?

(35 marks)





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