Questions:
International Trade Assignment
1.Industrial policy is not efficient because it protects inefficient industries.
True / False? Discuss.
2. Would an increase in an economy's GDP affect its trade patterns in the same way as an increase in GDP per capita?
Explain fully.
3. If world prices increase, the current account balance of the importing country will improve.
True / False? Explain.
4. Should high-income countries erect or maintain trade barriers against imports from low-wage countries?
Discuss.
5. Adam Smith wrote "An Inquiry into the Nature and Causes of the Wealth of Nations". How do you account, nowadays, for the income inequality between rich and poor countries? Do countries need to be democratic to be rich?