1. What is mercantilism? What are the draw backs of this doctrine? 2. Why is comparative advantage rather than absolute advantage the basis for trade? 3. How can tariffs lead to a situation in which all parties to a trade lose? 4. What are the two approaches followed by the U.S. government to ease the burden on the victims of free trade? 5. Suppose that the United States' principal trading partners experience a sharp recession with falling GDP. How will the U.S. economy be affected? Can the United States insulate itself from this effect? 6. Click the