Briefly explain absolute and comparative advantages

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1. What are some ways in which globalization has affected resource distribution and income distribution? Describe how these two factors affect different kinds of people and countries in different ways.

2. Briefly explain what it means to have a balance of trade and explain the difference between a trade surplus and a trade deficit. What's one way that a trade surplus might be a benefit, and one way it might be a drawback?

3. Briefly explain absolute and comparative advantages in trade, as well as opportunity cost and briefly describe how comparative advantage leads to economic growth.

4. In two or three sentences, explain what a trade bloc is. Then briefly describe the purpose of each of these three important trade blocs: North American Free Trade Agreement (NAFTA), the European Union (EU), and the Association of Southeast Asian Nations (ASEAN).

5. In a few sentences, explain the difference between a fixed exchange rate and a flexible exchange rate. What are the basic advantages and disadvantages of each?

Reference no: EM133552701

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