Consider this home-foreign commerce scenario. Consider those two nations the sole trading partners in the globe. Radio and corn. Consumers always buy maize and radios. Only labor produces. Foreign workers can produce 2 units of Corn or 4 units of Radios per hour, whereas home country workers can produce 2 or 3. 30 domestic and 60 foreign staff.

Suppose Canada can produce cars at an opportunity cost of 2 computers for each car it produces. Suppose Mexico can produce cars at an opportunity cost of 8 computers for each car it produces. Indicate how both countries can gain from free trade.

Trade between the United States and Honduras         is a losing proposal for the U.S. because Honduran labor is less expensive than U.S. labor.       is a losing proposal for Honduras because capital is more abundant in the U.S. than in Honduras.       benefits both the United States and Honduras.     is a losing proposal for Honduras because U.S. workers are more productive than Honduran workers.

The following diagram shows the domestic demand and domestic supply in a market. In addition, assume that the world price in this market is $40 per unit. 190 180 170 160 150 140 130 120 110 100 90 80 70 60 50 40 30 8 ↑ Price 20 10 200 400 600 300 units of the good. Refer to Figure 9-22. With free trade, the country imports 600 units of the good. 900 units of the good. – 1,200 units of the good. 800 1000 1200 1400 1600 1800 2000 2200 Domestic Supply Domestic Demand 2400 Quantity

Japan employed strategic trade policy to further its national interests. Give an example of an industry that benefitted from this practice.

Which of the following best explains the concept of "Comparative Advantage" in international trade? a) A country should produce goods in which it has an absolute advantage and trade for those where it does not. b) A country should only export goods and import nothing to maintain a positive trade balance. c) A country should specialize in the production of goods for which it has the lowest opportunity cost compared to other countries. d) A country should diversify its production across various sectors to avoid dependence on a single export commodity.

Describe benefits from international trade.

A small country imports T-shirts. With free trade at a world price of $10, domestic production is 10 million T-shirts and domestic consumption is 42 million T-shirts. The country's government now decides to impose a quota to limit T-shirt imports to 20 million per year. With the import quota in place, the domestic price rises to $12 per T- shirt and domestic production rises to 15 million T-shirts per year. The quota on T- shirts causes domestic consumers to A) gain $7 million. B) lose $7 million. C) lose $70 million. D) lose $77 million

No one country is self sufficient today, each country needs others for its smooth economic survival and therefore each country needs to go for international trade in order to adjust their economy in the global competition. Make this fact as a base and explain that how this international trade plays its significant role in the economic development of our country? Furthermore, international trade is not free from disadvantages. Explain some of the disadvantages briefly which are linked with Q1. international trade.

Should the Trade Embargo on Cuba Be Lifted? Three years after Fidel Castro took power in Cuba and installed a Communist regime, the U.S. government initiated a trade embargo against the nation. The embargo was intended to put economic pressure on the Cuban government. Today the embargo is still in effect— one of the longest trade embargos in modern history. Opponents on each side of the issue debate its effectiveness. Who is right? As you read the selections, ask yourself: Should the trade embargo on Cuba be lifted or remain in place? PRO A HALF-CENTURY OF FAILURE For almost half a century, the U.S. government has tried to isolate Cuba economically in an effort to undermine the [Communist] regime [of Fidel Castro] and deprive it of resources. Since 1960, Americans have been barred from trading with, investing in, or traveling to Cuba. . . . As a foreign policy tool, the embargo actually enhances Castro’s standing by giving him a handy excuse for the failures of his…