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Question1. "The United States can manufacture X more efficiently than can Great Britain. Yet we import X from Great Britain." Explain
Question2. Evaluate the following statements:
[a] The extensive application of protective tariffs destroys the ability of the international market system to allocate resources efficiently.
[b] In view of the rapidity with which technological advance is dispersed around the world; free trade will inevitably yield structural maladjustments, unemployment, and balance-of-payments problems for industrially advanced nations.
Question3. Suppose Japan agreed to a voluntary export restriction (VER) that reduced U.S. imports of Japanese steel by 10%. What would be the likely short-run effects of that VER on the U.S. and Japanese steel industries? If this restriction were permanent, what would be its long-run effects in the two nations on [A] the allocation of resources, [B] the volume of employment, [C] the price level, and [D] the standard of living?
Question4. Plan in detail five ways an organization can benefit from international trade.
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