Across developing Asia, many countries are slow in vaccinating their people — and that’s holding back economic recovery.

[answerhappygod]

Across developing Asia, many countries are slow in vaccinating
their people — and that’s holding back economic recovery.
Meanwhile, the Russian invasion of Ukraine has heightened
uncertainty and unsettled commodity markets in Asia. The war
against Ukraine and sanctions on Russia are hitting economies
around the globe, with emerging market and developing countries in
the Europe and Central Asia region expected to bear the brunt, says
the World Bank’s latest Economic Update for the region. The Asian
Development Bank said developing Asia is expected to grow by 7.1%
this year, lower than its previous forecast of 7.3%. Someone argues
that, the Russian invasion of Ukraine mainly affects the Asian
economy through rising commodity prices, especially crude oil.
(Total 20’)
(1) Please describe the mechanism by which international trade
is formed. (4’)
(2) Please use the international trade theory to explain the
argument of “the Russian invasion of Ukraine mainly affects the
Asian economy through rising commodity prices”. (6’)
(3) About 60% of Russia’s oil exports go to OECD Europe, and
another 20% go to China. Please analyze the possible short-run and
long-run impacts of the war against Ukraine and sanctions on Russia
on China’s commodity and factor markets. (10’)