Project 3: Review of China Trade Policies, 1970-2014  (Project 3 is a review of trade policies of a specific developing country from 1970-2014)  Trade Policies in Developing Countries  Globalization  •Required Readings:  o Todaro, Michael P. and Stephen C. Smith (2015) Economic Development (12th edition) (Boston et al.: Pearson), Sections 12.1-12.2 (pp. 600-612).  •Learning Objectives:  o The main economic characteristics of globalization.  o That some countries are excluded from the overall globalization.  o The relationship between globalization, trade and development.  o The Prebisch-Singer Hypothesis  •Discussion Questions:  1. Provide two arguments for why poorer countries may be excluded from the overall globalization.  2. Why might it matter for development what kind of products a country is exporting?  3. How realistic is the Prebisch-Singer Hypothesis?  Trade Theory  •Required Readings:  o Todaro, Michael P. and Stephen C. Smith (2015) Economic Development (12th edition) (Boston et al.: Pearson), Sections 12.3-12.4 (pp. 612-630).  • Learning Objectives:  o Understand the concept of comparative advantage.  o The six main assumptions of the traditional neoclassical trade model.  •Discussion Questions  1. How realistic is the neoclassical trade model, focusing on relative factor endowments?  2. Why might there be a problem with promoting the sector in which a developing country has a comparative advantage?  3. Provide one pro and one con for having special arrangements for developing countries within international trade agreements.  Trade Strategies  •Required Readings:  o Todaro, Michael P. and Stephen C. Smith (2015) Economic Development (12th edition) (Boston et al.: Pearson), Sections 12.5-12.8 (pp. 630-662).  •Learning Objectives:  o The rational for and failure of ISI  o The rational for and limits of export promotion.  o The emergence of and relevance of the industrialization strategy approach to export policy.  •Discussion Questions:  1. Critically assess two of the five undesirable outcomes of ISI.  2. Critically assess two arguments put forward by trade pessimists.  3. Critically assess two arguments put forward by trade optimists.  4. How different is South-South trade from North-South trade?