IntEcon I

Define 'service outsourcing'

What kind of products do nations trade now?

How did nations trade in the past?

Which countries are the largest trading partners with the U.S.?

What does the gravity model predict?

Which factors influence trade?

What has increased trade? What has decreased trade?

Define the 'Ricardo model'

In the 'Ricardo model', what do countries export and import?

How does trade benefit a country?

A country gains from trade even if...

There is one basic prediction in the 'Ricardo model' that has been confirmed by a number of studies. Which one is it?

How do you find out what the cost of making a good is?

Define 'comparative advantage' and 'absolute advantag'

How do you know which country produces which goods?

Countries in economics models are extremely specialized. This is not the case in the real international economy because...

What does the graph of a production possibility frontier illustrate?

Give two reasons why international trade has strong effects on the distribution of income outside of the simplified Ricardian model.

Explain the 'Specific Factors model'

Which factors in the 'Specific Factors model' gain or lose from trade? How can trade produce overall gains from trade?

Explain what the marginal product of labor is

Explain the law of diminishing marginal returns

In a four-quadrant diagram, why is the production possibilities frontier curved?

Explain the Heckscher-Ohline model

What is the basic Heckscher-Ohlin theory of trade?

In the Heckscher-Ohlin model, international trade has strong effects on income distribution. Who wins/loses?