1. Explain why global trade has increased so much in recent years. 2. Summarize the main gains to trade. 3. Compare and contrast absolute advantage and comparative advantage 4. Discuss the winners...

1. Explain why global trade has increased so much in recent years.

2. Summarize the main gains to trade.

3. Compare and contrast absolute advantage and comparative advantage

4. Discuss the winners and losers from trade, and analyze the arguments for protectionism.

5. Describe what it means for a currency to appreciate or depreciate.

6. List explanations for why the United States consistently runs a trade deficit.

7. Suppose the quality of U.S.-made bulldozers declined. Answer the following questions. a) Will the supply curve for imported bulldozers shift to the left, shift to the right, or stay the same? b) Will the demand curve for imported bulldozers shift to the left, shift to the right, or stay the same? c) Will the quantity of imports rise, fall, or stay the same?