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1. "Is Free Trade Passé?" by Paul Krugman, published in Journal of Economic Perspectives, Fall 1987.
Link to article: https://bit.ly/2DED3N2
a) What are the two arguments against free trade that Krugman highlights. For one of the arguments, you can use the results from a game similar to question 1.
b) What are the counter-arguments (1) Empirical Difficulties, (2) the issue of Entry, (3) General Equilibrium considerations, (4) possibility of Retaliation and Trade Wars, and (5) issues due to Domestic Politics. Be concise.
c) In Krugman's view, how can free trade be the right policy in spite of findings in international trade theory that free trade is not the optimal policy.
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