Assignment:
Question 1-Explain why governments impose restrictions on free trade.
Question 2- Explain mercantilism. What were its major flaws?
Question 3- Explain how both the international product life cycle theory and the new trade theory ultimately result in lower priced goods. Include a definition of "first mover advantage" in your answer.
Question 4- Explain the theory of comparative advantage using an example, and describe its assumptions and limitations.
Question 5- Describe each instrument that governments use to promote trade.
Question 6- Describe the main political motives behind government intervention in trade.
Question 7-Write a short note on the World Trade Organization and its influence on the environment.
Question 8-Discuss the factor proportions theory and describe the evidence on this theory.
- Discuss the factor proportions theory and describe the evidence on this theory. ( one paragraph or two )