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Assignment Instructions Trade Theory Analysis – South Korea and Germany You are working as a trade economist tasked with analyzing South Korea’s trade

July 10, 2025

Assignment Instructions

Trade Theory Analysis – South Korea and Germany

You are working as a trade economist tasked with analyzing South Korea’s trade patterns through the lens of major international trade theories. Your goal is to assess how well the theories of Comparative Advantage, Heckscher-Ohlin, and New Trade Theory explain South Korea’s current trade behavior, particularly in relation to its key exports and imports. Begin by briefly summarizing the core principles of each theory. Then, using credible sources such as globalEDGE, identify South Korea’s top traded commodities and select one significant product to analyze in greater detail.

Assignment questions:

1. How does South Korea’s trade profile compare to that of Germany, another advanced economy?

2. In what ways do the trade behaviors of South Korea and Germany reflect or diverge from the theories of Comparative Advantage, Heckscher-Ohlin, and New Trade Theory?

3. What factors help explain the similarities or differences in trade patterns between the two countries?

4. How useful and relevant are each of these trade theories when applied to modern, complex economies like South Korea and Germany?

5. Based on your analysis, how relevant are traditional trade theories in explaining global trade dynamics in today’s interconnected world?

In your assignment, be sure to use the textbook and integrate at least three peer-reviewed sources along with their citations and references. Your assignment must be APA formatted and include at least 1200 words.

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