Chapter 6, Problem 9SQ

Liberal and Realist perspectives on free trade from a US policy perspective. Are there conditions under which a free trade agreement might threaten US interests? If so, what are they, and which perspective incorporates this view? Which perspective do you believe more accurately reflects reality and why?

Unit labor costs in Germany approach $30 per hour, whereas in Britain unit labor costs are only $20 per hour. Why would such a large difference persist between two members of the EU free trade area?

"western Japanese and other multinational corporations will aim to reduce their dependence on china: . explain the consequences this would have on china, taking into consideration the importances for host country

Why did the rate at which different countries industrialized differ so greatly?  What were the human gains of industrialization?  What were the human costs of industrialization?  How are we dependent on a global economy?  And, what does this dependence mean for our environment? Our future?

Highlight the basis for trade between two countries with identical demands and different production structures

Why has the scale of global trade increased so dramatically since the mid-twentieth century? How has the nature of global trade changed since the 1960s? What are some of the advantages of globalization?

Inter-industry trade is based on comparative advantage while Intra-industry trade in differentiated products arises from realizing economies of scale.  Which type of trade is easier in resources, especially in labour, adjustment and why?

What is state led-industrialization? Discuss the progress achieved in terms of stateled industrialization during 1930s? What were the goals? Did this achievement help to sustain trade surpluses in coming decades?

Intellectual property and patent laws vary greatly in developing countries. How wouldyou propose to protect your products in a developing country with a large populationwhere the CEO of a generic pharmaceutical manufacturer states: “The U.S. wouldgrant a patent on a piece of toilet paper. Just because the U.S. granted a patent doesn’tmean it should be valid in our country.”