1a) How does the factor endowments theory view differ from the principle of comparative advantage? Give an example.

b) Thinking in terms of Porters Diamond Model and your favorite company (e.g. Apple, Intel, Nike) which of the four factors in the model do you believe are most important in supporting the success of this company? Justify your answer.

c) Explain why economists typically consider the principle of comparative advantage the most important rationale for international trade?

d) Explain why most nations prefer free trade and how your life would change in the absence of international trade?