- IMATIVE ASSESSMENT (ASSIGNMENT) – 2020 FIRST SEMESTER INM500 INTERNATIONAL MANAGEMENT V 1 One of the answers to the question of why nations trade is provided by the theory on mercantilism. Compare and contrast mercantilism and neo-mercantilism. Do not just copy from the textbook; if you do, you will only be given 3 marks. (5) 2 The nationalisation of key industries and banks is discussed under neo-mercantilism. Choose a side of the nationalisation debate in South Africa and motivate your choice. Ensure that you refer to the theory in the textbook and include three recent articles from the internet related to this topic in your answer. Your answer will be assessed in accordance with the rubric at the end of this assignment (25) According to the theory of absolute advantage, a country can increase its economic wellbeing by specialising in goods that it can produce more efficiently than anyone else. Suppose South Africa and China each produce two products, namely dresses and motorcars. South Africa needs 12 hours to produce a motorcar and 3 hours to produce a dress; China needs 8 hours to make a motorcar and 4 hours to make a dress. Answer the questions that follow. 1.3.1 Summarise the above-mentioned information in a table as shown below. Hours of production for one unit Dress Motorcar China South Africa