Economics Homework Help

In a critical essay, discuss at  least two trade theories that can explain Saudi Arabia’s international  trade. Analyze their main insights and challenges. Are they good  predictors of trade patterns? What implications does the Saudi Vision  2030 have on international trade?

For Your Success

Factor endowment theory, the main topic  of Module 3, focuses on two factor endowments, labor and capital, that  determine trade. Factor endowment theory and its valuable extensions  have played a significant role in the development of trade theory for  almost a century.

Learning Outcomes

1. Critique the factor endowment theory.
2. Assess the implications of factor endowment theory and its two  most influential extensions to the case of trade between countries with  different endowments of labor and capital.
3. Assess the value of the theory of comparative advantage and the new trade theory.

Readings

Required: 

Chapter 3 in International Economics

Alkhathlan, K., Alkhateeb, T., Mahmood,  H., & Bindabel, W. (2020). Concentration of oil sector or  diversification in Saudi economy: consequences on growth  sustainability.  Entrepreneurship and Sustainability Issues, 7(4),  3369-3384. Retrieved from https://jssidoi.org/jesi/uploads/articles/28/Alkhathlan_Concentration_of_oil_sector_or_diversification_in_Saudi_economy_consequences_on_growth_sustainability.pdf 

Devarajan, S. (2020). Has globalization  gone too far- or not far enough? Georgetown Journal of International  Affairs, 21, 114-119. Retrieved from https://muse.jhu.edu/article/766379/pdf