1. Arrows up or down: Outsourcing _____ production costs and _____ consumer prices.
2. In the first three months of 2004, the number of jobs moving to another state was _____ (larger/smaller) than the number of jobs moving to another country.
3. Approximately what percentage of job losses in the first three months of 2004 were caused by outsourcing 2, 10, or 25 percent?
4. Candy cane manufacturers are shutting down plants in the United States and moving to Mexico because import restrictions have caused higher ___ prices in the United States.
2.5 Consider a bicycle producer that initially employs 200 production workers and 10 customer-service workers. When the firm outsources its customer service operation to India, the 10 customer-service workers lose their jobs.
a. Explain why the net effect from outsourcing could be a loss of fewer than 10 jobs in the firm. b. Under what circumstances will there be a net gain in jobs in the firm?
6. The Steel Industry versus the Appliance Industry. Suppose the United States limits the imports of steel to protect its domestic steel industry. Explain the implications of the import restrictions on industries such as appliance manufacturers who use steel as an input.
7. Data on Exports and Imports. Access the Statistical Abstract of the United States on the Internet and download the tables in the section entitled Foreign Commerce and Aid. One of the tables lists U.S. exports and imports by selected Standard Industrial Trade Classification (SITC) commodity. Fill in the blanks in the following table for the most recent year listed in the table.

8. Trade Balances by Country. Access the Statistical Abstract of the United States on the Internet and download the tables in the section entitled Foreign Commerce and Aid. One of the tables lists U.S. exports and imports and merchandise trade balance by country. Fill in the blanks in the following table for the most recent year listed in the table.

Commodity | Export Value! Import Value! (S millions) Net Exports milions Exports -Imports ($ millions) Coffee Corn Soybeans Airplanes Footwear Vehicles Crude oil