GATEWAY BUSINESS COLLEGE

ECO101 Microeconomics Individual Assignment

2023 Semester 1

Assessment details

Weight: 30%

Due date: 11.00 pm Sunday, 21 May (End of the Week 5)

You are required to write a 1200-word individual report analysing a case study related to the Russia
Ukraine conflict by answering the three discussion questions.

Case study: Russian Ukraine Conflict

Vladimir Putin’s decision to invade the sovereign nation of Ukraine has shocked the world. Protests
against Putin’s action have sprung up in major cities from New York to London and even in Moscow.
World leaders have responded swiftly with punishing sanctions against Russia and those who support
Putin and bans of exports to Russia (BBC News, 2020) (Financial Times, 2020). However, in an age of
globalization, those sanctions and bans come with an economic cost to the nations imposing them and
to the global economy in general (Glazyev, 2020). UK Foreign Secretary Liz Truss has acknowledged
for example, that Britain could feel the economic pain of the sanctions and bans for months and perhaps
even years. One way to understand just what that pain could look like is to consider the role of Russia
in the global economy. In addition, because Russia’s invasion in Ukraine is likely to disrupt normal
trade flows to and from both countries, understanding each country’s major exports and imports can
provide additional insight into the economic fallout from Putin’s attack on Ukraine (Tokmazishvili &
Aydın, 2020). You may already know that Russia is a huge exporter of oil and natural gas. Indeed, the
United States imports some 600,000 barrels of oil from Russia every day, an amount second only to its
imports from Canada and Mexico. But did you know that Ukraine is the world’s fourth largest exporter
of the barley used in animal feed and beer production? Any disruption in barley exports will probably
result in higher prices for the meat and beer you consume. Wheat and corn prices could also rise if
exports from Ukraine, one of the world’s largest exporters of both, are disrupted. Much of Ukraine’s
grain exports go to the Middle East and Africa, however any major disruption to global supplies could
have a domino effect for other nations. Car prices could also jump if Russia is unable to export nickel,

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used in lithium-ion batteries, and palladium, used in catalytic converters. Rising costs of these goods
and other others will probably push inflation, already high because of the pandemic, even higher,
affecting interest rates on mortgages, car loans, and credit cards (Kryvinska & Zasadko, 2020). While
the economic pain you may feel as a result of the sanctions and bans pales in comparison to that
currently being experienced by Ukrainian citizens, it reflects that while globalization has its benefits, it
also has its drawbacks.

Reference list:

Glazyev, S. (2020). Ukraine, Russia and Globalization: the Impact of the Conflict. Journal of
Globalization Studies, 11(2), 79-93. doi: 10.30884/jogs/2020.02.08

Kryvinska, N., & Zasadko, I. (2020). The Role of Political Risks in Microeconomic Decision Making:
Evidence from Ukraine. Journal of Risk and Financial Management, 13(12), 314. doi:
10.3390/jrfm13120314

"Russia-Ukraine conflict: The economic cost" by BBC News, published on December 18, 2020.
(https://www.bbc.com/news/world-europe-55307687)

"Russia-Ukraine conflict poses threat to European gas supply" by Financial Times, published on
January 15, 2020. (https://www.ft.com/content/e5a25ed8-36c5-11ea-ac3c-f68c10993b04)

Tokmazishvili, N., & Aydın, M. (2020). The Russia-Ukraine Conflict and Its Effects on Global Energy
Security. Journal of Security and Sustainability Issues, 10(1), 163-176. doi: 10.9770/jssi.2020.10.1(10)

Discussion questions:

1. Russia’s invasion of Ukraine has pushed global oil prices to their highest since 2014 and it is
expected that they will rise even further. Discuss the ramifications of higher oil prices for the
U.S. economy and the global economy in general. What do higher oil prices mean for you
personally? You may consider the following concepts to answer this question:
• Explain the concept of supply and demand in the oil market and how it affects prices.
• Discuss the relationship between oil prices and inflation, and how higher oil prices can
lead to higher prices for other goods and services.
• Describe how higher oil prices can affect different sectors of the economy, such as
transportation, manufacturing, and agriculture.
• Explain how higher oil prices can affect international trade and the balance of payments.

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 • Discuss the role of monetary policy in managing the effects of higher oil prices on the
economy, including the use of interest rates and inflation targeting.
• Encourage students to consider their own consumption patterns and how higher oil
prices could affect their daily lives, such as the cost of driving, heating their homes, or
purchasing goods that require oil for production.

2. How has Russia’s natural resource base allowed it to become a dominant player in the global
economy? Even countries that don’t depend on Russian oil are likely to feel an impact from
any disruption to global oil supplies. One means of moderating the rising cost of oil is to
produce more. Why is it so difficult to increase production? What does this tell you about U.S.
dependency (and that of other nations) on imported oil? How could a move to renewable energy
change the geopolitical dynamic? Here are some tips to make the question more specific and
focused:
• Explain how Russia's natural resource base, specifically its oil and gas reserves, has
given it a comparative advantage in the global economy, making it a dominant player
in the oil and gas markets.
• Discuss how disruptions in global oil supplies can have a ripple effect on the global
economy, even for countries that don't depend on Russian oil.
• Explain why it becomes increasingly difficult and expensive to extract oil as existing
reserves are depleted, and how this can impact production levels.
• Discuss why the US and other countries are dependent on imported oil, and how this
can impact their economies and geopolitical relationships.
• Discuss the potential benefits and challenges of transitioning to renewable energy, and
how this could impact the global economy and geopolitical relationships.

3. Discuss globalization as it relates to the current situation. How has the world benefited from
the free flows of trade that have allowed Russia to become a major exporter of oil, nickel, and
palladium and Ukraine a major exporter of barley, wheat, and corn? What do potential
disruptions to those trade flows mean for the global economy? Do you think you’ll experience
any direct impact? Here are some tips to provide clear context and focus on key concepts:
• Provide a brief definition of globalization and how it relates to international trade and
the global economy.
• Explain how free flows of trade have allowed Russia and Ukraine to become major
exporters of oil, metals, and agricultural products, respectively.
• Discuss the benefits and drawbacks of globalization for both developed and developing
countries, including how it has contributed to economic growth and inequality.

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 • Explain how potential disruptions to global trade flows, such as trade wars or political
conflicts, can impact the global economy and different countries and industries.
• Discuss how individuals and households may be affected by these disruptions,
including changes in prices for goods and services, job opportunities, and investment
returns.

How to present your assignment

A copy of the marking criteria rubric for this assessment can be found in the Marking Criteria section
later in this document.

Total marks: 30

• 24 (80%) marks from contents: 6 marks for each question, 6 marks for introduction/
conclusion.
• 6 (20%) marks from writing skills including referencing.

Length: 1,200 words

Structure: use report structure (i.e., introduction + main body + conclusion + reference list)

Formatting: standard 12-point Times New Roman font, 1.5 line spacing, and side margin 2.5 wide.

Referencing: all sources (i.e., the work and ideas of others) cited and referenced using APA
referencing system. You need to provide both in-text referencing and the reference list.

SUBMISSION INSTRUCTIONS

This assignment must be submitted via Turnitin in Moodle. Hard copies will not be accepted or
marked.

You may make unlimited submissions via Turnitin to check your work for plagiarism and make
adjustments accordingly up until the due date.

To avoid plagiarism, you must:

• Follow GBC referencing policy.

• Keep similarity rate less than 30%.

• Make appropriate in-text referencing.

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 • Paraphrase original ideas.

• Provide reference list.

Students could ask the librarian Mr. Kulam Shanmugam ([email protected]) for
further help on referencing.

Late submission

10% penalty will apply for every 24 hours delay in submission.

Support

Academic support: https://moodle.gatewaycollege.edu.au/course/view.php?id=15

Academic Misconduct policy: 4ed4c59bffb3328f26ecf3f10dfcb988.pdf (gatewaycollege.edu.au)

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 ECON101 Assignment Marking Rubric
Semester 1 2023
Section weighting Not attempted Fail Pass Credit Distinction High Distinction
0 0-2.5 3-3.5 4-4.5 5 5.5-6
Content 30% No understanding Limited Adequate Thorough In-depth Comprehensive
Knowledge of the topic or key understanding of understanding of understanding of understanding of understanding of
concepts. the topic or key the topic or key the topic or key the topic or key the topic or key
concepts. concepts. concepts. concepts. concepts.
Analysis 30% No analysis or Limited analysis Adequate analysis Thorough analysis In-depth analysis Comprehensive
and evaluation of the and evaluation of and evaluation of and evaluation of and evaluation of analysis and
Evaluation issue. the issue. the issue. the issue. the issue. evaluation of the
issue.
Use of 20% No evidence Limited use of Adequate use of Substantial use of Extensive use of Comprehensive
Evidence provided or relevant and relevant and relevant and relevant and and persuasive
sources used are reliable evidence reliable evidence reliable evidence reliable evidence to use of relevant
irrelevant or to support to support to support support arguments. and reliable
unreliable. arguments. arguments. arguments. evidence to
support
arguments
Writing 20% Poor writing Limited writing Adequate writing Good writing Excellent writing Exceptional
Skills skills, including skills, including skills, including skills, including skills, including writing skills,
formatting, formatting, formatting, formatting, formatting, including
structure, clarity, structure, clarity, structure, clarity, structure, clarity, structure, clarity, formatting,
grammar, and grammar, and grammar, and grammar, and grammar, and structure, clarity,
spelling. spelling. spelling. spelling. spelling. grammar, and
spelling.

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