Category: Essentials of Economics: Ch 14

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The cost of dead PCs

A significant illegal trade in ‘e-waste’ has developed with thousands of discarded computers arriving every day in the ports of West Africa. Once there, children are often used to dismantle them and extract metals . However, this has resulted in huge toxic dumps and serious health problems for resident in the surrounding area.

Breeding toxins from dead PCs Guardian (6/5/08)

Questions

1. Identify the principal external costs resulting from this illegal trade in e-waste.
2. Using diagrams as appropriate, show the impact of this market failure on the market for new computers.
3. Evaluate two policies that the international community could adopt to reduce this illegal trade in e-waste.
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Just enough power to save themselves – the emerging economies

Given the interdependence of the global economy, the economic slowdown in the West is likely to have worldwide knock-on effects. How serious will these effects be for the emerging economies of South East Asia? The following articles consider this question.

The decoupling debate The Economist (6/3/08)
Can Asia escape the effects of the downturn in the West? Times Online (17/3/08)
Just enough power to save themselves Times Online (25/3/08)

Questions

1. Explain the term emerging economy.
2. Discuss the extent to which the economic performance of the emerging economies will help reduce the likelihood of recession in the UK.
3. Discuss the extent to which the economic performance of the emerging economies is likely to be affected by recession in the USA.
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The bread basket that is left to grow weeds

Large areas of land in the former Soviet Union and Eastern Europe are lying uncultivated due to export barriers and tariffs. Given the recent rapid rise in food prices, this fallow land (estimated to be around 23 million hectares) could help to reduce upward pressure on food prices.

Bread basket that is left to grow weeds Times Online (12/3/08)

Questions

1. Identify three different forms of protectionism.
2. Explain why the land identified in the article has remained uncultivated.
3. Discuss the arguments for and against these countries reducing tariffs on food.
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Millennium goals – are we on target?

At the turn of the century, the UN Development Programme identified a series of seven Millennium Development Goals (http://www.undp.org/mdg/). The article linked to below from the Guardian, considers the progress that has been made towards these goals. Urgent progress is required if the goals are to be met by the target date of 2015.

Poverty, hunger and disease: so much done yet so much left to do Guardian (10/12/07)

Questions

1. What are the seven Millennium Development Goals.
2. Discuss the action that is required if the goals are to be met by the target date of 2015.
3. Analyse the extent to which an increase in overseas aid will help to achieve the Millennium Development Goals.
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Upwardly mobile in Africa

Research has indicated that communications technology can be a significant driver of GDP growth. In Africa it is possible that mobile phones and networks can provide opportunities for economic development and members of the GSM Association are proposing to invest £25bn in sub-Saharan Africa in the next five years.

Questions

1. Explain how improved communication technology can help create a higher level of economic growth.
2. Assess the extent to which more extensive mobile networks will help to alleviate poverty.
3. Discuss the advantages and disadvantages of foreign direct investment in mobile technology for sub-Saharan Africa.