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Assignment on international trade theory

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Reference no: EM132895375

Topic 1: International Trade Theory

1. QUESTION: What are the potential costs of adopting a free trade regime? Do you think governments should do anything to reduce these costs? Why?

2. QUESTION: Reread the Country Focus "Is China Manipulating Its Currency in Pursuit of a Neo-Mercantilist Policy?"

a. Do you think China is pursuing an economic policy that can be characterized as neo-mercantilist?

b. What should the United States, and other countries, do about this?

3. QUESTION: Drawing on the new trade theory and Porter's theory of national competitive advantage, outline the case for government policies designed to build a national competitive advantage in biotechnology. What kind of policies would you recommend the government adopt? Are these policies at variance with the basic free trade philosophy?

Reference no: EM132895375

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