Critical Thinking Questions
Given that you are the product manager of a firm's export/import division, how would you explain to the controller of finance how the dollar price of an imported good may change even though the foreign production cost of that product remains unchanged.
What does international trade do to a nation's domestic production possibilities? Use economics terms, concepts, and methods.
Given that you are an economist speaking to a convention on international trade, in your speech, what insights about international trade came from Adam Smith and David Ricardo?
Distinguish between a balance of payments surplus and a balance of payment deficit in terms of payment of official reserves. Use economics terms, concepts, and methods in your explanation.