1. Can a nation's comparative advantage change over time? If so, briefly discuss the factors that might make it change.
2. Dumping refers to the idea of selling goods for below their cost of production. Briefly explain the two scenarios why foreign firms may export a product at less than its cost of production (therefore, earning a negative profit on the good).
3. We subsidize domestic farmers to ensure that they remain profitable and continue to produce agricultural products. Explain the main argument for ensuring domestic production of agriculture products (even though domestic-produced agriculture costs buyers more than foreign-produced agriculture) and not needing to rely 100% on foreign-produced agriculture. Who are the "winners" of the farming subsidies? How do they benefit? Who are the "losers" of the farming subsidies? What does it cost them?