Task: An international economist you have been asked to prepare a short speech which answers the following questions:
Problem 1. How does the Heckscher-Ohlin theory differ from Ricardian theory in explaining international trade patterns?
Problem 2. The Heckscher-Ohlin theory demonstrates how trade affects the distribution of income within trading partners. Explain.
Problem 3. How does the Leontief paradox challenge the overall applicability of the factor-endowment model?
Problem 4. According to Staffan Linder, there are two explanations of international trade patterns-one for manufacturers and another for primary (agricultural) goods. Explain.
Following that speech, the audience asks you to respond to the following question:
Describe a specific tariff, an ad valorem tariff, and a compound tariff. What are the advantages and disadvantages of each?