Saving, International Trade, and Outsourcing

In this assignment, you will find and analyze data on the major exports of China and India into Canada. You will then try to explain why these countries export these goods.

Dataset:

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Industry Canada Trade Data Online
http://www.ic.gc.ca/eic/site/tdo-dcd.nsf/eng/Home

Background data collection and analysis:

1. Download data on the top 25 products imported into Canada from China and India (separately) in 2018. Choose Search by Product, then select Trade Type: Total Imports, Trader: Canada, Trading Partner: China and India (separately), Time Period: Specific Year (2018), Value in: $ Canadian (Current Dollars), Product Options: Top 25 Products (HS6 Codes).

2. Choose three of the top 10 products. Determine whether these are commodities (i.e., agricultural products, fuels, or metals), low-skilled manufactured goods, or high-skilled manufactured goods, and research what inputs are used in producing these goods: resources, raw labour, human capital, or physical capital. Are these countries abundant in those inputs?

3. Download data on the top 25 products imported into Canada from China and India (separately) in the year of the year of the 1990s corresponding to the last digit of your B00 number. For example, if your B00 number ends in 5, collect data from 1995.

4. From the lists in products in question 3, examine the top three products and determine whether they are substantially different types of products from those exported by China and India in 2018.

Essay:

In your essay, describe the products that China and India export to Canada and how these exports have changed over time. Describe in general terms what kinds of goods these are, and consider what kinds of inputs are used to produce them. Does a country’s resource availability affect its exports? Rodrik (2006) shows that, in 1992, both China and India exported goods that were more sophisticated than their income levels would have predicted. Explain how Rodrik measures export sophistication. In 2018, do these countries still exhibit more export sophistication than you would expect?

Detailed Instructions:

Your essay must have a title, an introduction, and a conclusion. Make sure to define your terms and provide appropriate background information. A possible essay structure contains five paragraphs:
• a first paragraph that briefly introduces the argument you will make in the essay;
• a second paragraph describing exports in 2017;
• a third paragraph describing exports in the 1990s;
• a fourth paragraph describing how exports have changed over time, including an analysis of their sophistication as explained by Rodrik;
• and a fifth, concluding, paragraph that briefly describes the main points you have made in the essay.

The maximum length is 500 words plus a two-page data appendix; include a word count at the end of your submission. Include the grading rubric as the first page of your submission. Use Chicago or APA style, and write in 11- or 12-point font, double-spaced, with one-inch margins. Provide a bibliography listing the references you use, including the class PowerPoints if relevant. You must submit a hard copy (in class) and an electronic copy (on Brightspace) by the deadline. Please note that the electronic copy will be submitted to anti-plagiarism software.

Data Appendix:
The data appendix should include enough detail for the grader to determine that you downloaded the correct data and performed the calculations accurately; if not all of your data fits on two pages, you may decide to include only the first and last years of information. Required charts and figures go into the body of your essay; any supplemental charts and figures should be placed in your data appendix.

Penalties:
• Late submissions: -10 points per day, starting immediately after 4:05 p.m.
• If you submit only an electronic copy and no hard copy, you will receive a zero on the assignment.
• If you submit only a hard copy and no electronic copy, you will receive a zero on the assignment.
• No rubric: -1 point.
• No data appendix: -2 points.
• Data appendix over two pages: -1 point for each additional page.
• No word count: -2 points.
• Over 500 words: -1 point for each additional 50 words (e.g., -1 for 501 words, -2 for 551 words, etc).

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