Reference no: EM133082122

Question 1: What is liberal economic theory, and what type of economic system does the theory explain?

Question 2: How have changes in technology contributed toward the globalization of markets and production? Would the globalization of markets and production have been possible without these technological changes?

Question 3: What is the distinction between absolute advantage and comparative advantage? Which one is more important for determining international trade and specialization, and why? Provide a numerical example that covers both concepts.

Question 4: What important trade-offs must a country be prepared to make when determining its approach to patent and copyright laws?

Question 5: Re-read the Country Focus feature "Is China Manipulating Its Currency in Pursuit of a Neo-Mercantilist Policy?" and answer the following questions:

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?