Added on -2020-07-22

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INTERNATIONAL TRADE

ContentsINTRODUCTION...........................................................................................................................1QUESTION 1:.................................................................................................................................1Report and interpret relationship between Openness and the GINI Index for each nation.........1QUESTION 2:.................................................................................................................................2Explain the Stolper-Samuelson theorem.....................................................................................2QUESTION 3:.................................................................................................................................3Explain whether data agree or disagree with the Stolper-Samuelson theorem...........................3REFERNCES...................................................................................................................................4

INTRODUCTIONIn this current report we would be taking out correlation between GINI index andOpenness of two countris namely Poland and Paraguay. Then there would also be includedStolper-Samuelson theorem which is telling about relative price of product with its price of otherfactor of production.QUESTION 1: Report and interpret relationship between Openness and the GINI Index for each nation.The correlation of coefficient of both the countries with taking two variable namelyopenness and GINI index of Paraguay and Poland. It was done by taking the CORREL functionin excel sheet by putting both the variable into there. The correlation is of two types namely -1and +1 and they both denote having positive or negative relationship between the variableswhich are to be taken. Like the -1 would be telling that both the variable are having negativerelationship like both variable are having inverse relationship between them both. While on theother hand if they are having +1 this would be meaning that they are having positive or mostpossible relationship between them. In this if one is increasing the other one would also beincreasing and if one is decreasing other would also be decreasing (Stockhammer, 2017).So when there was correlation that was taken of both Openness and GINI index therelationship which was taken out to be +1. This would be clearly denoting that if GINI index ofPoland would be increasing then the Openness of Poland would also be increasing and viceversa. Same is the case with Paraguay if one is decreasing other one would also be decreasing onequal amount.1

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