#1: What are the two main sources of economic gains from intra-industry trade?

#2: What is splitting up the value chain?

#3: In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10 tons of rubber or 40 radios.

#4. Who has the absolute advantage in the production of rubber or radios? How can you tell?

#5. Calculate the opportunity cost of producing 80 additional radios in Japan and in Malaysia. (Yourcalculation may involve fractions, which is fine.) Which country has a comparative advantage in the production of radios?

#6. Calculate the opportunity cost of producing 10 additional tons of rubber in Japan and in Malaysia. Which country has a comparative advantage in producing rubber?

#7. In this example, does each country have an absolute advantage and a comparative advantage in the same good?

#7. In what product should Japan specialize? In what product should Malaysia specialize?

#8: Name and define three policy tools for enacting protectionism.

#9: Do the rules of international trade require that all nations impose the same consumer safety standards?

#10: Who gains and who loses from trade?