ECN 367 Economics of Globalization
Spring 2025
Essay 1
Write an essay on topic I or topic Il below in 500-700 words. Please only address questions A, B and C for the essay you choose to write on. To maintain the flow of the essay, please try to connect these three parts: A with B and then B with C (a single connctingsntncwl) (20 points)
I. Protectionism
A. Trade protection (import tariffs, import quotas etc) reduces the size of the aggregate economic pie, which is why economists probably have concerns about it. Explain this statemen, and describe any two other objections to protectionism one mayhave. (8 points)
B. While the overall economic pie shrinks due to tariffs or other forms of trade protection like import quotas, theseprotectionist policies create both winners and losers. Discuss examples of winners and losers from protection, and how their existence is the basis for political-economy forces in the determination of protection. (8 points)
C. Based on the above analysis, do you think good economics is always good politics or vice versa? Explain. (4 points)
OR
II. Trade and jobs
A. How do imports impact jobs in different kinds of industries or sectors? Explain. (4 points)
B. What do you think has been the biggest import shock the US has faced during the last 4-5 decades? What do you think led to that shock? Did that shock lead to massive job destruction? Why or why not? Explain. (10 points)
C. What are the roles of currency manipulation and trade balance in this context? (6 points)