Assignment:
Answer the following questions based on Figures below Limit your answer to two pages.
1. Why is there such a wide gap between productivity and wage in the U.S, Taiwan, and, to some extent, Japan compared to other countries (Figure)? Give your opinion (hint: market system and the role of the government)
2. What features or characteristics of these primary commodities led to the differences in the trends of the relative prices of each of the following products in panels (a), (b), and (c)? Why do some primary commodities show decline, increase, and no trend over time?
Readings:
International Trade
By Robert C. Feenstra and Alan M. Taylor