Economics:

Subject: Business-to-Business Marketing

Paper Model: APA

Paper Type: Assignment

Total Words: 1014

Document Outline

Assume that at maximum production levels, Japan can produce either 100 CD’s or 50 
DVD’s. The U.S. can produce either 90 CD’s or 30 DVD’s. Calculate the comparative 
advantage for each country in both CD and DVD production and show your results. Who 
has the comparative advantage for each product? Why
For USA
Some economist criticized the comparative advantage principle, contending that it may 
have helped developed countries maintain relatively advanced technology and industry 
compared to developing countries. Can you explain how Trade based on Comparative 
Advantage could have helped maintain the income inequality among different countries 
globally?
Can government s shape or distort comparative advantage? Can such policies be labeled as 
“protectionists”? In your opinion, did international trade destroy jobs in the US and 
reduce wages? Does Globalization affect job security?
Is trade deficit a problem for the US economy? How long in your opinion can the US keep 
running trade deficits? What are the different types of trade policies that the US can 
initiate to reduce trade deficit?
Who benefits from trade liberalization agreement?
 


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