Assignment: International Economics

Questions:

1) Explain David Ricardo's theory of comparative advantage. How does comparative advantage differ from absolute advantage? What is the relationship between comparative advantage and gains from trade? At least 550 words

2) Define both internal and external economics of scale. How do economies of scale play into trade between two countries with one factors of production? At least 250 words

3) What do you think are the political arguments for free trade? Have these arguments survived the tests of time? At least 250 words.

4) Based on research, summarize the economic booms that India and China enjoyed within the past few decades. What economic policies do they have in common? At least 250 words

5) Analyze the effect of the political economy on trade agreements and policy. Analyze the various countries to which the United States actively trades or has an embargo upon. How does this fluctuate with the political economy? Use contemporary examples or examples from history to illustrate your point. At least 520 Words.

Course Textbook: Krugman, P., Obstfeld, M., & Melitz, M. (2013). International economics: Theory and policy (9th ed). Upper Saddle River, NJ: Prentice Hall.