Question 1.) What is meant by "absolute advantage" in international trade? Is it ever sustainable? Explain.
Question 2.) What is the real purpose of subsidies? Why are they restrictive to world trade? Give an example.
Question 3.) What are your thoughts on using restrictive tariffs for the protection of infant industries in the global marketplace?
Question 4.) General Motors, Ford and Chrysler all needed governmental help in keeping their business going in this recession. There are, however, dozens of automobile manufacturers in this country whose plants are doing quite well: Mercedes, Nissan, Toyota, Kia and Hyundai. What are they doing different to make a profit without government help?