1.What do undergraduates need to know about trade?

2.Assume that Nation A has a comparative advantage relative to Nation B in the production of steel versus rice. Explain why and how Nation B has a comparative advantage in the production of rice versus steel.

3.Pieland is a country with abundant land, good soil, a productive climate for agriculture, but very few people. As Pieland moves from autarky to export of farm products, what will happen to land prices and wage rates? Explain your reasoning.

4.T_ab = (GDP_a, GDP_b, D_ab).T_ab is trade between country A and B. GDP_a and GDP_b are the gross domestic products for countries A and B respectively, and D_ab is the distance between the two countries. What are the expected relationships between the variables in the model? Is this a gravity model?