The Economist article

Instructions: Answer the following two questions in essay format. There are two questions – you need to answer each one as best as you can. This Economic Essay is 30%

of your total assessment for the unit. Answers should be submitted TYPED in clean A4 paper, 1-inch margin on each side, Left, Right and also Top and Bottom. Include

diagrams where where necessary. The Total Maximum Word Count: 2500. Penalties will apply to excessively long essays.

1. Read through the following article and answer the questions below:

http://education.theage.com.au/cmspage.php?intid=152&intversion=32

also on pp 11-15 this outline.
According to the article, what factors have caused buying behaviour to shift towards the internet? Is internet shopping causing the demise of established retail shops

in Australia? Explain using demand, supply and elasticity concepts. (answer the questions directly and choice a product/look at one typical market) more detail see the

image
800-words (with graphs): 10 marks

2. Read through The Economist article on page 16 of this unit outline.
Also, and go through the following websites: www.cia.gov, www.oecd.org
Choose 2-3 developing countries and 2 developed (OECD1) countries from the available list. Tip: Choose the countries such that they have some history of trading

between them.
(a) Using country-specific trade statistics, describe the general pattern of trade experienced by each of these economies in the last 20 years. In your description,

assess whether each one has become more or less dependent on international trade in more recent times. Do you see any evidence of “South-South” trade increasing? Do

you see any evidence of “South-North” trade decreasing? If so, in what goods and/or services? If not, comment on how your observations hold in light of The Economist

article.
(b) Given your description above, discuss some possible reasons for your observed trends. Draw on your knowledge of trade theories learned in class to enrich your

economic analysis. It is equally important that you draw on your knowledge of relevant domestic and/or international factors that may have influenced the country

trends, where this knowledge can come from your own research reading.