Read the following article and provide written answers to the questions below:
https://www.abc.net.au/news/2021-12-17/australia-signs-free-trade-agreement-united-kingdom/10070
6992
1. Research the products that are currently exported to and imported from the UK. Using data you have
obtained, identify which types of good each country is likely to have a comparative advantage in and
provide a justification for your result. All data collected should be presented in an Appendix to your
paper (not included in the word limit) (10 marks)
2. Using models we have covered in the course, demonstrate how an FTA with the United Kingdom
would effect aggregate welfare. Be sure in your discussion to discuss any distributional effects which may
take place both in the short and long run. (15 marks)
3. In the article, it is noted that the agreement would increase the capacity for British citizens to migrate
to Australia. Again, using theory covered in the course, provide an analysis of the short and long run
effects of an inflow of British citizens into Australia. (15 marks)
