Problem
1. How does considering trade in the broader cultural context change one's analysis?
2. One of the basic economic laws is "the law of one price." It says that given certain assumptions one would expect that if free trade is allowed, the price of goods in countries should converge.
a. Can you list what three of those assumptions likely are?
b. Should the law of one price hold for labor also? Why or why not?
c. Should it hold for capital more so or less so than for labor? Why?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.