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Introduction to the Global Economy and Theories of Trade.
1. Clearly explain any five linkages that connect today's nations such that they are interdependent.
2. Identify and discuss any two modern day events that illustrate interconnections between countries. Be sure to be specific about the events, and clearly explain ways in which such events evidenced the interconnections between countries.
3. List any four known facts about the nature of international trade today.
4. There are multiple reasons for international trade. Many of the answers are related to forces that shape specialization patters. List and describe the influence of four such forces.
5. David Ricardo's Comparative Advantage theory suggests that a nation will export those products in which it has a low opportunity cost relative to their trading partners, and import other those products in whose opportunity cost is higher relative to its trading partners. Do you consider Ricardo's ideas to sustain in today's international trade? Explain your response. Be sure to offer at least one verifiable example as a part of your response.
6. Briefly describe improvements made by the Ohlin-Heckscher theory on David Ricardo's Comparative Advantage theory.
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