ECON1089 International Trade

The country chooses the USA To answer the assignment questions first get the data to follow these steps. 1. This assignment requires you to obtain data from one country (1) of your choosing. 2. Obtain country-level data on trade (% GDP) from the World Bank’s World Development Indicators (http://databank.worldbank.org/data/source/world-development-indicators). 3. Obtain data on industrial pay inequality difference from UTIP-UNIDO (http://utip.gov.utexas.edu/data.html). 4. DO NOT attach Excel files to the assignment. 5. Keep explanations brief. Policy analysis in applied economics has to be brief. Be precise and to the point, avoid jargon. . Using data plot openness versus Industrial Pay Inequality (from UTIP-UNIDO) for the nation. IT’S UP TO YOU TO FIGURE OUT HOW TO DO THIS.  2. Calculate the correlation (using excel) between openness and Industrial Pay Inequality (from UTIP-UNIDO) for the nation. Report and interpret this relationship in approximately 300 words. [Hint: Correlation can be calculated using the CORREL . The Theil Index is used as a proxy for the ratio of skilled to unskilled wages in empirical studies]. DO NOT ATTACH YOUR DATA TO THE ASSIGNMENT.  3. Explain carefully in approximately whether your data agrees or disagrees with the Stolper-Samuelson Theorem. (Remember to accurately define the theorem and discuss how it applies to your countries).  4. Conclusion:  explain how comparative advantage is linked to inequality in the country that you’re studying? A reminder that this assignment is not a RESEARCH-based essay but data application , explain with minimal technical jargons Also please decide on your choice of country with a key understanding and evidence of the exporting good - the factor intensity, the factor endowment - the education level , to work on assignment 2; A reminder this is not A RESEARCH -based essay but applying research data for key analysis