International econ

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International-econ-Done
  • International-econ-Done

  • Exam (elaborations) • 13 pages • 2019
  • 1) Explain the connection between the US trade deficit and financial capital flows. 2) Explain how comparative advantage determines the pattern of trade. Use an example to aid in your explanation. 3) Explain how the Stolper-Samuelson theorem indicates that free trade will (likely) worsen income inequality in the US, but (likely) narrow it for Mexico. 4) Show the effects on US welfare from each of the following events. a. Imposition of a tariff on a small, perfectly competitive market b. Impos...
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