1. How does innovation and technology impact the cost of production, market structure and real-world competition? Use a specific example.
2. If wages are lower in Mexico than in Germany, can labor costs per unit of output still be higher in Mexico? Explain.
3. Social diversity and business ethics are important to business's long term success. Explain.
4. State how, through comparative advantage and trade, countries can consume beyond their individual production possibilities. Use a specific example.
5. How are exchange rates determined, and what is their role in equalizing trade flows?
6. How do free trade associations both help and hinder international trade?