1. Watch this video “I, Smartphone”
https://drive.google.com/file/d/0ByZgnIP0zJ4OTVdubjFLMEhZS28/view?usp=sharing
How does this clip illustrate Adam Smith’s concept of the invisible hand? ($1,000)
2. What is meant by the index of openness? How is it calculated? Note: use the formula provided in topic 1 in your answer (same formula is in chapter 1 of the textbook). What does it tell us about an economy? ($1,000)
3. In general, are larger countries more open or closed? What about smaller countries? Provide an example of a country which is large (as defined by the index of openness) and one which is small. ($2,000)
4. Is the following statement true or false? A country’s index of openness can never exceed 100 in value. Explain your answer in 2-3 sentences. ($1,000)
5. In class, we looked at the geographic pattern of merchandise trade in 1965 and 2010. Use these figures to answer the following questions:
(A) What has happened to Asia’s export share? Why? ($750)
(B) What has happened to North America’s export share? How important is America as a trading partner for other countries? ($750)
(C) What has happened to the export share of Latin America & Africa? ($750)
(D) How important is geography when explaining trade patterns? ($750)
6. Which nation, according to the World Trade Organization report (2014), is the biggest merchandise trader in the world (including exports & imports)? What factors help explain this? You can find the report in the homework 1 folder. ($1,000)
7. How important is world trade in services to the world economy? Which country is the largest exporter/importer of services according to the World Trade Organization report (2014)? What factors explain this? You can find the report in the homework 1 folder. ($1,000)
8. The following podcast comes from NPR’s “Planet Money” series. The podcast is about outsourcing: “In A Twist, Tech Companies Are Outsourcing Computer Work To … Humans” If you click the link below, you can listen to the podcast & read a transcript.
http://www.npr.org/2015/07/04/420097029/in-a-twist-tech-companies-are-outsourcing-computer-work-to-humans
Why are tech companies outsourcing computer work to humans? ($2,000)
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