Q1. Critically evaluate the notion that the Ricarian view of trade demonstrate that bilateral free trade is beneficial to both trading partners.
Q2. Critically evaluate the differences between the absolute advantages proposed by Adam Smith and the comparative advantage proposed by David Ricardo.
Q3. Why do countries introduce trade barriers? Analysis the alternative trade barriers and then discuss the effect of subsidies.
Q4. Examine approaches that firms wishing to enter foreign markets might take to reduce the risks and challenges arising from global expansion. Use models and Frameworks to support your analysis as well as specific examples to support any arguments that you put forward.
Revision Guide -
Students need to understand the following concepts thoroughly.
1. Foreign investment
2. Demand and Supply, Elasticity, Substitutes and Complements.
3. The effect of Foreign Exchange on international trade.
4. Absolute Advantage and Comparative Advantage
5. Competitive Advantage
6. Trade Barriers such as Tariff, Quota, Subsidy.