1. International trade leads to specialization and mutual interdependence. Every country specializes in a sub-set of products and relies on other countries for the supply of goods and services it does not produce. Events in one country will necessarily affect its trading partners.

Discuss any three examples of events occurring in one country and having a significant impact in nations that are its trading partners. You are also restricted to events that have occurred no earlier than 2010. Finally, be sure to document your sources.

2. Ricardo's theory predicts the direction of flow of trade, but not necessarily the volume. Volume is predicted buy factors similar to those that impact demand levels. List at least five such factors that are known to impact demand patterns.