Reference no: EM133066758

Please answer each of the following:

1. How do consumption possibilities differ from production possibilities when a country is engaging in trade based on comparative advantage? What does this imply about overall economic welfare in countries that are engaging in trade? What happens to world production when countries engage in trade based on comparative advantage? Are workers rewarded for their contribution to productivity when they participate in an economy that is organized around comparative advantage? Explain.

2. Does the US have a comparative advantage in producing clothing? How can this be easily explained by looking through your clothes closet?

3. China's leadership has recently imposed a crackdown on business and societal practices that are, at least in part, designed to return to country to its socialist roots. How is this expected to impact key industries (technology, real estate, education, finance, etc.)? How are these crackdowns intended to target wealth disparities in China? Explain.