Describe and analyze the differences in economic development during the 20th century of twocountries from the pair below. The comparison between the two countries should drive yourarguments. Use data/graphs/pictures/tables to build your argument and cite your sources.
●East and West Germany.You should address the following issues:
●What economic activities (sectors) do these countries specialize in? Have theseactivities changed over time?
●In which periods have these countries observed a considerable increase/decrease intrade. Discuss what effect the increase/decrease in trade had on the economy and onthe welfare of the people living in both places.
Discuss what the theory predictsregarding an increase in trade.
●Discuss how and why economic specialization took place.
Which other countries didboth places trade or compete with? Make sure to point out whether the countries youstudied had an absolute advantage in other activities at which they did not specialize.
●We looked at four main factors that explain why countries grow: geography, trade,institutions, and changes in productivity within the Solow Model.
What factor has contributed the most in explaining differences in economic growth (or lack thereof)?
Discuss the role of all four factors.
