Question: Construct a quantitative example that illustrates the principle of comparative advantage. What are dynamic effects of free trade, and why might they be important? Explain

Construct a quantitative example that illustrates the principle of comparative advantage. What are dynamic effects of free trade, and why might they be important?

Explain why the potential for higher global production is greater under free trade than it is with restricted trade.

Discuss the validity of the strategic trade policies as brought forward by the new trade theorists.

What is meant byeconomies of scale?

What does Porter's diamond model say about the role of government?

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