Assignment: Economic Analysis
Standard trade theory is based on perfect competition, with constant returns to scale at the level of the individual firm and constant or increasing cost of expanding production at the level of the industry. Comparative advantage predicts that countries will trade with other countries that are different (the source of the comparative cost differences) and that each country will export some products and import other, quite different, products. While much international trade conforms to these patterns, a substantial amount does not. Most obviously, industrialized countries trade a lot with one another, and much of their trade each is exporting and importing similar products.
Develop a detailed paper analyzing intra-industry international trade.
1. Cover page with a running head
2. Introduction
3. Economies of scale
4. Monopolistic competition and the gravity model of trade
5. Global oligopoly (strategic trade policy)
6. Agglomeration economies (external economies of scale)
7. Conclusions
8. References
Format your assignment according to the give formatting requirements:
1. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the course title, the student's name, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.