[wwelol]

(Original post by owen1994)
You have confused me slightly, but yeah I think you have got it spot on. going to bed now mate, night.

YH IM PRETTY SURE U ARE WRONG
because china can specialise in them as they own 90% (im talking about just about the raw material of rare earth not what can be used to make with it)

so THEREFORE HAS A ABSOLUTE ADVANATGE IN rare earths relative to america
and a comparative advanatge b/c china can produce more than usa but then again we both may be wrong because it depends on the foregone good which isint mentioned


but chiana has a absolute advantage
because it says it in the apt analysis

[uxa595]

(Original post by owen1994)

"Discuss the arguments in terms of China's restrictions on its exports of rare earths"


I just talked about protectionism. Terms of trade, because the restrictions or quotas will raise the market equilibrium price of the rare earths, this will mean an improvement in the terms of trade, which will mean China will be able to export less to be able to 'pay' for the same amount of imports. How China claims extracting such earths is damaging for the environment through atmospheric pollution and other means. The counter argument of that the USA and Europe use these rare earths for 'Eco-innovation' and in products such as solar panels and electric cars which would offset any pollution caused by extraction, thus China's protectionism could actually be damaging to the environment.

It also goe's against the principle of free trade. China doesn't have a comparative advantage in making products with rare earths as its relative opportunity cost is higher than that of other countries. For this reason, China's quotas will mean an in-efficient use of global resources and because they are limiting their own trading possibility curve. On the other hand the Herscher-Ohlin theory of international trade states that you are supposed to export products that are made with raw materials you have an abundance of (China has 90+% of the worlds rare earths) and import materials that are scarce. If China plan to make these eco-goods or electrical items such as smart phones, then what they are doing shouldn't be a big issue?

Lots of random other points that I just made up, first essay I have done in class for this.

Your neg points seem a little off to me even though i think they are right :P

I would have done:
- Raises export prices, causes a rise in foreign firms' raw material costs. This leads to them becoming less competitive. Also, There is likely to be a greater supply just for China, thus, raising supply for them,lowering the price, lowering cost push inf and increasing competitiveness.
- reserves natural recourses and reduces pollution in mining them. This should benefit the environment and potentially health too of the Chinese people. China has masses of pollution and lowering this pollution due to less mining due to a quota on it's exports may result in increases the HDI and living standards of the general public more then an increase in RGDP from more exports would bring, thus making it more viable if the current aim of China is to raise living standards, which it is now worrying about...
- It should help increase China's comparative adv in production. It may lead to greater production in China. There is a possibility if firm's can't locate these materials elsewhere or the quota is not enough, all production of goods with these materials will shift to China. This will be at no cost to China if they are well within there productive potential as they can produce these extra goods without a opportunity cost. China can use this increase in revenue and investment to help improve their comparative advantage further, improve their potential growth and allow them to enter new industries, removing it's partial dependance on manufacturing and maybe move the development process of these goods to china.

cons
- Retaliation. Maybe of these goods are going to be exported internationally and exports are a large % of china's GDP. They will get assraped economically if other countries put up lots of protectionist measures.
- Lowers choice for Chinese consumers. bad for living standards.
- IF the goods make up a fair % of GDP, their GDP will fall a lot. Further hurt by a multi+accel effect.
- If other countries produce these goods more cheaply, you get trade diversion. Raises import prices, and if imports are price inelastic, Chinese consumption will fall. Fall in living standards. Marshal-Lerner.

eval
- More viable if China is suffering shortages causing cost push inflation.
- More viable if it saves lots of jobs.
- Benefits outweigh the costs that come with retaliation?
- Unlikely to see sanctions n the short run , where it is more viable, but in the long run, maybe neg effects. Sanctions limit exports, and rising import prices cause fall in chinese comsumption/cost-push inf.
- If rare metals are very inelastic in demand, may be worth it more. inc price, no dec in demand.
-Tariff a better option. It will lower demand for these metals while inc govt revenue.
Size of quota? Will it really affect global prices and reduce exports? May just be there to prevent overexploitation and move from a price at which it is a private cost on china to a social cost on the world.


Went a lil overboard but ended up doing a full plan as it seemed an interesting Q. BTW, ain't read the sim pack yet so this is all based on general knowledge and may be wrong.

[owen1994]

(Original post by uxa595)
Your neg points seem a little off to me even though i think they are right :P

I would have done:
- Raises export prices, causes a rise in foreign firms' raw material costs. This leads to them becoming less competitive. Also, There is likely to be a greater supply just for China, thus, raising supply for them,lowering the price, lowering cost push inf and increasing competitiveness.
- reserves natural recourses and reduces pollution in mining them. This should benefit the environment and potentially health too of the Chinese people. China has masses of pollution and lowering this pollution due to less mining due to a quota on it's exports may result in increases the HDI and living standards of the general public more then an increase in RGDP from more exports would bring, thus making it more viable if the current aim of China is to raise living standards, which it is now worrying about...
- It should help increase China's comparative adv in production. It may lead to greater production in China. There is a possibility if firm's can't locate these materials elsewhere or the quota is not enough, all production of goods with these materials will shift to China. This will be at no cost to China if they are well within there productive potential as they can produce these extra goods without a opportunity cost. China can use this increase in revenue and investment to help improve their comparative advantage further, improve their potential growth and allow them to enter new industries, removing it's partial dependance on manufacturing and maybe move the development process of these goods to china.

cons
- Retaliation. Maybe of these goods are going to be exported internationally and exports are a large % of china's GDP. They will get assraped economically if other countries put up lots of protectionist measures.
- Lowers choice for Chinese consumers. bad for living standards.
- IF the goods make up a fair % of GDP, their GDP will fall a lot. Further hurt by a multi+accel effect.
- If other countries produce these goods more cheaply, you get trade diversion. Raises import prices, and if imports are price inelastic, Chinese consumption will fall. Fall in living standards. Marshal-Lerner.

eval
- More viable if China is suffering shortages causing cost push inflation.
- More viable if it saves lots of jobs.
- Benefits outweigh the costs that come with retaliation?
- Unlikely to see sanctions n the short run , where it is more viable, but in the long run, maybe neg effects. Sanctions limit exports, and rising import prices cause fall in chinese comsumption/cost-push inf.
- If rare metals are very inelastic in demand, may be worth it more. inc price, no dec in demand.
-Tariff a better option. It will lower demand for these metals while inc govt revenue.
Size of quota? Will it really affect global prices and reduce exports? May just be there to prevent overexploitation and move from a price at which it is a private cost on china to a social cost on the world.


Went a lil overboard but ended up doing a full plan as it seemed an interesting Q. BTW, ain't read the sim pack yet so this is all based on general knowledge and may be wrong.

Lol at that. Excellent points mate. I only got 13/20 in my essay at college anyway, not bad considering it was my first one and haven't really covered much yet. I just got the toolkit in my email but haven't even looked at it yet. Need to start revising sooooooner rather than later $$

[NewCrack]

(Original post by owen1994)
Lol at that. Excellent points mate. I only got 13/20 in my essay at college anyway, not bad considering it was my first one and haven't really covered much yet. I just got the toolkit in my email but haven't even looked at it yet. Need to start revising sooooooner rather than later $$

Upload the toolkit!!!!!!!!!!!!!!!!!!! Please!!!!!

[TheSelfAcknowleged]

(Original post by owen1994)
Lol at that. Excellent points mate. I only got 13/20 in my essay at college anyway, not bad considering it was my first one and haven't really covered much yet. I just got the toolkit in my email but haven't even looked at it yet. Need to start revising sooooooner rather than later $$

Could you forward the e-mail with the toolkit in it to my e-mail address, or simply attach the toolkit to an e-mail and send it to me? I'll PM you my e-mail address if you can, please.

I'd seriously appreciate it!

[Executioner]

(Original post by owen1994)
Lol at that. Excellent points mate. I only got 13/20 in my essay at college anyway, not bad considering it was my first one and haven't really covered much yet. I just got the toolkit in my email but haven't even looked at it yet. Need to start revising sooooooner rather than later $$

Hey could you please send the toolkit
Thank youu

[wwelol]

(Original post by uxa595)
Your neg points seem a little off to me even though i think they are right :P

I would have done:
- Raises export prices, causes a rise in foreign firms' raw material costs. This leads to them becoming less competitive. Also, There is likely to be a greater supply just for China, thus, raising supply for them,lowering the price, lowering cost push inf and increasing competitiveness.
- reserves natural recourses and reduces pollution in mining them. This should benefit the environment and potentially health too of the Chinese people. China has masses of pollution and lowering this pollution due to less mining due to a quota on it's exports may result in increases the HDI and living standards of the general public more then an increase in RGDP from more exports would bring, thus making it more viable if the current aim of China is to raise living standards, which it is now worrying about...
- It should help increase China's comparative adv in production. It may lead to greater production in China. There is a possibility if firm's can't locate these materials elsewhere or the quota is not enough, all production of goods with these materials will shift to China. This will be at no cost to China if they are well within there productive potential as they can produce these extra goods without a opportunity cost. China can use this increase in revenue and investment to help improve their comparative advantage further, improve their potential growth and allow them to enter new industries, removing it's partial dependance on manufacturing and maybe move the development process of these goods to china.

cons
- Retaliation. Maybe of these goods are going to be exported internationally and exports are a large % of china's GDP. They will get assraped economically if other countries put up lots of protectionist measures.
- Lowers choice for Chinese consumers. bad for living standards.
- IF the goods make up a fair % of GDP, their GDP will fall a lot. Further hurt by a multi+accel effect.
- If other countries produce these goods more cheaply, you get trade diversion. Raises import prices, and if imports are price inelastic, Chinese consumption will fall. Fall in living standards. Marshal-Lerner.

eval
- More viable if China is suffering shortages causing cost push inflation.
- More viable if it saves lots of jobs.
- Benefits outweigh the costs that come with retaliation?
- Unlikely to see sanctions n the short run , where it is more viable, but in the long run, maybe neg effects. Sanctions limit exports, and rising import prices cause fall in chinese comsumption/cost-push inf.
- If rare metals are very inelastic in demand, may be worth it more. inc price, no dec in demand.
-Tariff a better option. It will lower demand for these metals while inc govt revenue.
Size of quota? Will it really affect global prices and reduce exports? May just be there to prevent overexploitation and move from a price at which it is a private cost on china to a social cost on the world.


Went a lil overboard but ended up doing a full plan as it seemed an interesting Q. BTW, ain't read the sim pack yet so this is all based on general knowledge and may be wrong.

who has the comparative advanatage in rare earths?

[uxa595]

(Original post by wwelol)
who has the comparative advanatage in rare earths?

i said comparative adv in production, meaning they can produce many goods more cheaply.

Nobody has a comparative advantage in rare earths as they are just raw materials which means they are a land (in CELL) production factor.

You could have a comparative advantage in extracting them though...

[wwelol]

(Original post by uxa595)
i said comparative adv in production, meaning they can produce many goods more cheaply.

Nobody has a comparative advantage in rare earths as they are just raw materials which means they are a land (in CELL) production factor.

You could have a comparative advantage in extracting them though...

what did u get in the transport paper ?

[owen1994]

Lol I had like 10 private messages all asking for the same thing haha

[Executioner]

(Original post by owen1994)
Lol I had like 10 private messages all asking for the same thing haha

hahaha you're bound to get private messages if you mention you have the tutor2u toolkit lol :P

[wwelol]

ii hear the apt one sucks

[wwelol]

(Original post by owen1994)
Lol I had like 10 private messages all asking for the same thing haha

on extract 2 when it says china has appreciated against dollar but exports still high

does this suggest chinas exports are price inelastic?

[stars and dots]

does anybody have any idea of what possible essay questions could be? Any help would be much appreciated

[Frodo Baggins]

So the link is what is coming up in the exam?

[wwelol]

(Original post by Frodo Baggins)
So the link is what is coming up in the exam?

wat u mean?

[wwelol]

(Original post by stars and dots)
does anybody have any idea of what possible essay questions could be? Any help would be much appreciated

discuss the implications for raising interest rates for uk economy (10)

u get 3 marks for evaluation

so say it depends on where the inital AD curve is
uk is suffereing cost push not demand pull so will have little effect on inflation
and it improves crediblity of mpc

[stars and dots]

(Original post by wwelol)
discuss the implications for raising interest rates for uk economy (10)

u get 3 marks for evaluation

so say it depends on where the inital AD curve is
uk is suffereing cost push not demand pull so will have little effect on inflation
and it improves crediblity of mpc

Thank you

[wwelol]

if anyone wants apt analysis
im willing to sell for a small fee?
let me know

[NewCrack]

(Original post by wwelol)
if anyone wants apt analysis
im willing to sell for a small fee?
let me know

If you send it to me first