Assignment Task:
The theories of absolute and comparative advantage have been offered as economic rationale for trade between and among regions and countries. Compare and contrast the two concepts. Which of the two do you think is more important for explaining the growth in global trade during the last 25 years? Why?
1. The overall growth of global trade has more than doubled since 2000. Why? What has been the most important factor prompting this growth. Is this rate of growth likely to continue in the future? Why or why not?
2. The size of a country's population and the associated age distribution can be causal factors for economic growth. Why is the size of the population important to economic development? Can size be a disadvantage? Why is age distribution important?
3. Energy, food, and water are frequently cited resources that are critical for economic development. Explain the importance of each one to economic development. What disparities exist among countries with respect to these three resources? How can these challenges be resolved?