Chapter 8 discussion homework questions 1) (3 points) Complaints are often made to the International Trade Commissien concerning foreign "dumping\" practices. These complaints typically claim that U.S. firms are harmed by the unfair pricing of foreign exporters. Do you agree or disagree with this? Why? 2) (3 points) In the model of monopolistic competition, trade costs between countries will cause domestic and foreign markets to have different prices different quantities sold. and different profit levels. Do vou agree or disagree with this? Why? 3) (4 points) Imagine scale economies were not only external to firms, but were also external to individual countries. That is, the larger the worldwide industry (regardless of where firms or plants are located), the cheaper would be the per-unit cost of production. Describe what world trade would look like in this case and why? Hint: Presumably each country would specialize in some compenent of the final product. This would result in a high volume of intra-industry trade