INTERNATIONAL TRADE Assignment
I. INSTRUCTIONS: Using your book as a resource, (especially CH 17) define & give
an example of the following concepts. In depth work is expected!
Costs benefits analysis (do in class)
Open Markets/ Free Trade
Trade Barriers
Protectionism & arguments for it
Specialization & Trade p. 445
Comparative Advantage (Law of)
Absolute Advantage
NAFTA
WTO
Tarriff / Barriers
II. Outline the article “A World of Choices” In your outline start with a heading of
each question and make sure you provide detailed notes so that you could answer it in
detail. NOTE: You may check out this packet and take it home with you. Good outlines
will be between 1-2 pages of well summarized writing.
Be ready for a reading check quiz on this text!
III. Questions and activities in relation to the source “A World of Choices”
1. Create a detailed costs benefits analysis of open markets. Several items should be on
both side with phrases & support for each. Do as you read and in t-chart fashion.
2. What is “creative destruction?” Why is it good? Why is it bad?
3. What effect has NAFTA had on America both positive and negative?
4. What services does the US export? Why do we tend to have a trade surplus in
services and a trade deficit in goods?
5. Who are America’s top trading partners? (In 1999 when this was published)
6. Is a trade deficit bad? Explain.
7. What is the role of the WTO? Explain their role in regards to patents and copyright
laws?
8. Why do open markets raise the standard of living of the country?
9. Do the costs or problems that go along with free trade outweigh the benefits?
Explain.
10. Compare the future job market options for American students who have low skills or
are high school dropouts in a today’s global economy compared to the US economy
40 years ago?
11. What is the TAA? What is its purpose and why is it necessary?
DUE Friday May 30
Turn back in World of Choices Text with your # or $1 fine!