You are required to complete all four (4) sections (below) for the country you are allocated.


The country you are allocated is based on the last digit of your student number: For example, if your student number is 44194356, then you need to work on country number 6 – South Korea.


Last digit  Country
0 or 1 Canada
2 or 3 Germany
4 or 5 New Zealand
6 or 7 South Korea
8 or 9 United Kingdom, the


  1. Choose a product to create your own alternative to the Big-Mac index. Discuss whether your index may or may not be more accurate than the Raw and GDP-adjusted Big-Mac indexes, respectively. In your discussion, refer to the concept of Law of One Price and the assumptions behind it. (~350 words)
    1. Use your index to calculate to what extent the currency of your (allocated) country is over- or under-valued relative to the US dollar for one particular point in time that data is available. Show your workings. (~150 words)


    1. For this part, do not consider the impact of the COVID-19 pandemic. Answer either (a) or (b), but not both:


    • Use a graph to show your country’s current account balance for the most recent 10 years before 2020 that data is available. Discuss what drives its current account balance. Discuss what the current account balance situation might mean for the economy. Is the country heading toward a BoP crisis? (~500 words)


    • Use a graph to show your country’s stock of foreign debts for the most recent 10 years before 2020 that data is available. Discuss what drives its foreign debt. Discuss what the foreign debt situation might mean for the economy. Is the country’s foreign debt likely to be sustainable in the near future? (~500 words)


      Your primary data sources should be:

      • National agencies, e.g. Statistical Bureau, Treasury, Central Bank; or
      • Multinational agencies, e.g. the World Bank, the United Nations, the International Monetary Fund, the European Central Bank, the Bank for International Settlements.


      Data from secondary sources can still be used as a supplement only if those data are not available from any primary sources. NOTE: Using non-primary data can lead to loss of marks when primary source data is available for your country. 

      The World Bank’s World Development Indicators (WDI) database contains most of the national data collected by national and multinational agencies and can be used as a primary data source.  Here are some YouTube tutorials on how to extra data from the WDI:

      https://www.youtube.com/watch?v=JGJhI_YqFuI (May 7, 2019) https://www.youtube.com/watch?v=f_B1t4BRQ94&t=64s (Sept 21, 2018) https://www.youtube.com/watch?v=MKANl-ZWUTY (March 9, 2017)

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