Problem
1. Is the creation of a new industry a good thing? The state of Connecticut could create a banana industry, complete with hothouses, if it found a way to ban imports of bananas to the state. Should it do so? The state of Montana currently encourages a small liquor-bottling industry by taxing bulk imports to the state at lower rates than bottled liquors. Does this make more sense? Why?
2. Wages in the United States are the highest in the world. Yet, most U.S. trade is with other industrial, high-wage nations, rather than the low-wage, developing countries. Is this consistent with the law of comparative advantage? Explain.
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.