Question 1. Explain what is wrong with this statement: "Opening trade drives prices of goods and costs of factors into equality between countries, but once prices and costs equalize, there is no longer any reason to trade."
Question 2. What is mercantilism?
Question 3. If a country can produce a product efficiently but there is no domestic market for that product, how can that country gain by producing that product?
Question 4. How do opportunity costs relate to the concept of comparative advantage?