ECON1086 International Trade Assignment 2: Analytical backgroundof the report (Business in the Globalised Economy 2210）
Assignment 2: Analytical background of the report
(30% of your final grade)
*** Follow the instructions above on how to get the data. See Chapter 6 and/or Lecture 6 notes for references.
1.Using data plot openness versus lndustrial Pay Inequality(from UTIP-UNIDO) for the nation.IT'S UP TO You To
FIGURE OUT HOW TO DO THIS. (10 marks)
2.Calculate the correlation (using excel) between opennessand lndustrial Pay Inequality (from UTIP-UNIDO) for the
nation. Report and interpret this relationship in approximately300 words.[Hint: Correlation can be calculated using the
CORREL function: https://support.office.com/en-
us/article/correl-function-995dcef7-Oc0a-4bed-a3fb-239d7b68ca92.The Theil lndex is used as a proxy for theratio of skilled to unskilled wages in empirical studies]. DONOT ATTACH YOUR DATA TO THE ASSIGNMENT.(8marks)
3.Explain carefully in approximately 500 words whether yourdata agrees or disagrees with the Stolper-Samuelson
Theorem.(Remember to accurately define the theorem anddiscuss how it applies to your country). (6 marks).
4.Conclusion: In 200 words explain how comparativeadvantage is linked to inequality in the country that you'restudying? (6 marks).
Background:
In the first assignment you motivated a story about comparative advantage. In thissection you will talk about trade and inequality.You will then address the
relationship between comparative advantage and inequality in a short conclusion.To answer the assignment questions first get the data follow these steps.
1. This assignment requires you to obtain data from one country (1) of yourchoosing.
2.Obtain country-level data on trade (% GDP) from the World Bank's WorldDevelopment Indicators:
(http:/ldatabank.worldbank.org/data/source/world-development-indicators).
3.Obtain data on industrial pay inequality difference from UTIP-UNIDO (http://utip.gov.utexas.edu/datasets.html)
4.DO NOT attach Excel files to the assignment.