Taylor, A. M., & Feenstra, R. C. (2014).
International trade (3rd ed.). New York, NY: Worth.
Unit I Essay
International Trade Philosophy
Your essay should include the following:
• Compare absolute advantage, comparative
advantage, and the Ricardian model.
• Determine and argue which one of the
philosophies is best for a nation state in terms of trade, and use sources to
back up this claim.
The essay should be at least 500 words in
length. This does not include references. You are required to use your textbook
as source material for your response in addition
to outside sources. All sources used, including the textbook, must be
referenced; paraphrased and quoted material must
have accompanying citations. The paper must be written using the
APA style of writing.
Your response should be at least 75 words in
length for the eight questions below. You are required to use at least your
textbook as source material for your response. All sources used, including the
textbook, must be referenced; paraphrased and quoted material must have
1. What are some of the trade barriers countries
put up to restrict imports and what do these trade barriers achieve for the
country that is using these barriers?
2. What is the difference between horizontal FDI
and vertical FDI? Give an example of each.
3. Define trade deficit and give a detailed
example between two countries and explain why a trade deficit may exist between
the two countries.
4. What is international trade and why do
countries do it? Also, give a good example of international trade in the
context of your answer.
5. In the unit lesson for this module, it is
suggested that all things in trade are not equal. How would you help
disadvantaged countries to find better equality for them in our world trade
system? Please consider the Hecksher-Ohlin model when answering this question.
6. Why is the specific-factors model called the
7. In the specific-factors model, why would any
country employ an embargo of any industry? (Keep in mind that the U.S. still
has an embargo on Cuba.) If given the opportunity would you lift it? Why or why
8. According to the Hecksher-Ohlin model, two
countries can equalize wage differences by either engaging in international
trade of goods or allowing skilled and unskilled labor to move freely between
the countries. Discuss whether this statement is true or false and explain why
or why not.