Reference no: EM13148540

Discuss, from both an economic and a political viewpoint, why countries have become increasingly interdependent on each other. Use outside sources to reference at least one trade association and some trade statistics. Be sure to provide the references that you use. If you wish, you can reference the U.S. Census Bureau/Foreign Trade Statistics site for trade statistics. Information on international trade associations can be found by using a search engine such as www.google.com. You will see a variety of trade association Web sites that you may visit for additional information on that particular association. 2. Identify the major fallacies of international trade. 3. How did Smith's views on international trade differ from those of the mercantilists? 4. What factors underlie whether specialization in production will be partial or complete on an international basis? 5. Why is it that pretrade production points have a bearing on comparative costs under increasing-cost conditions but not under conditions of constant costs? 6. How does the Leontif paradox challenge the overall applicability of the factor-endowment model? 7. How does the Heckscher-Ohlin theory differ from Ricardian theory in explaining international trade patterns? How does the Heckscher-Ohlin theory differ from Ricardian theory in explaining international trade patterns? 8. Do recent world-trade statistics support or refute the notion of a product life cycle for manufactured goods? Using one of the Web sites provided for Chapter 3 at the textbook's companion site, research data to support your answer. Be sure to include the data in your answer.