International Economics

International Economics

QUESTION 1..................................................................................................................................1
QUESTION 2..................................................................................................................................2
QUESTION 3..................................................................................................................................3
REFERENCES................................................................................................................................6

QUESTION 1
Fiji which is now officially the Republic of Fiji is an island nation situated in Melanesia,
part of Oceania in South Pacific Ocean which is approximately around 1,100 nautical miles
(2,000 km; 1,300 mi) northeast of the North coast of New Zealand (Le and Quah, 2018). Its
nearest neighbours to west are Vanuatu, New Caledonia to southeast, Kermadec Islands of New
Zealand to southeast, Tonga to east, Wallis and Futuna of the Samoas and France to the
northeast, and Tuvalu to north. Fiji comprises of an island chain of more than 330 islands – about
110 of which are irreversibly occupied – and more than 500 islets, representing a total land area
which is about 18,300 square kilometers (7,100 sq mi). The outermost island is that of Ono-i-
Lau. The two main islands, Viti Levu and Vanua Levu, represent 87 per cent of its total 883,483
population. A capital, Suva, on Viti Levu, acts as main travel-ship port for a country.
Fiji is one of the world's 147th most extensive export economies. Fiji imported $2.44B
and exported $950 M in 2017, resulting in a $1.49B negative trade deficit. It's GDP in 2017 was
$5.06B, and its per capita income was $9.6k (Trading Economics. 2020). The Fiji's major
exporting countries are the United States of America ($266 million), Australia ($164 million),
New Zealand ($57.2 million), Japan ($48.8 million) and China ($40.3 million). The main
countries from Fiji imports are Singapore ($439 million), New Zealand ($403 million), Australia
($402 million), China ($385 million) and South Korea ($120 million). It is a major exporter
of Water ($148 million), Raw Sugar ($106 million), Non-fillet Frozen Fish ($81.5 million),
Processed Fish ($68.7 million), and Gold ($57.9 million), it uses the 1992 update of a HS
(Harmonized System) classification. It is a major importer of Refined Petroleum ($405 million),
Vehicles ($64.3 million), Non-Filet Frozen Fish ($64.3 million), Distribution Trucks ($64.2
million), and Wheat ($44.1 million).
The economy of Fiji is an open economy, and it works (imports and exports) on the
global market. This has been noted and illustrated that Fiji's net exports have declined in recent
years, reflecting slow growth as well, and imports were seen to increase year-on-year
consistently, rising Fiji's trade imbalance and balance of trade. In last several years ratio of
import to GDP has increased dramatically. Export production in Fiji is also decreasing due to
many factors. Recent changes of its balance of trade have brought about cycle of Fiji's
integration with world in prior years (Fidora and Schmitz, 2018). One such growth was signs of
progress in export orientation system of countries, which contributed to a growth in exports of
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