1. Does popular resentment against free trade simply re?ect economic illiteracy or more deep-seated political issues?
2. In country A, it is possible to produce a car with the same resources that would produce 1000 toy cars. In country B, producing a car uses resources that could produce 3000 toy cars. Show with a diagram how both countries can be better off if the international terms of trade between cars and toy cars is 1 car to 2000 toy cars. Suppose the country that is rela- tively good at making toy cars is poor and feels it cannot waste resources on consuming toy cars. Does this affect your analysis?