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Explain the concept of the rules of origin in regional and international trade
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- Consider two countries: South Korea and Taiwan. Taiwan can produce one million mobile phones per day at the cost of 10 per phone and South Korea can produce 50 million mobile phones at 5 per phone. Assume these phones are the same type and quality and there is only one price. What is the minimum price at which both countries will engage in trade?What might account for the dramatic increase in international trade over the past 50 years?Explain natural resources and specialization as courses of internal trade
- Explain the opportunity cost theory of international trade. How trade takes place under different cost conditions?Analyze and explain when a firm should consider expanding from strictly domestic trade to international trade. What should it consider when becoming further involved in international trade?Explain the three options for setting standards in trade rules
- Diagrammatically explain the statement 'Restricted trade is superior to no trade'.There are five different levels of regional trade agreements – demonstrate how each of these can work in practice.Describe the various types of political controls on international trade. Be sure to highlight the differences between the types.
