ECON-8

Comparative Advantage in International Trade

Read the articles:

1)      The Boomerang effect.

http://www.economist.com/node/21552898

2)      Comparative Advantage and American Jobs.

http://online.wsj.com/article/SB10001424052748703555804576102500952966450.html

You are expected to make your own contribution in a main topic as well as respond with value-added comments to at least two of your classmates. You are encouraged to respond to other students as well as to your instructor.

 Choose one question to answer:

1)      Does the protection of one domestic industry harm another? Please explain.

2)      Why does comparative advantage matter more than absolute advantage for trade? Please explain.