Answer Happy

- 2 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 sald 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') (20.05))