TOPIC 10: International Trade
Required Readings:
- Hall & Lieberman, Chapter 16
- The Wall Street Journal
STUDY QUESTIONS FOR TOPIC 10:
- Why does trade take place? What are the gains from trade?
- What is the theory of comparative advantage? How does it work?
- What causes comparative advantage?
- What is protectionism? Who gains? Who loses?
- In what ways would the U.S. be better off and worse off if we had higher tariffs and more restrictive quotas on foreign imports?
