2. Explain why comparative advantage plays such a large role in international trade. Give an example of how it works with a product of your choice.

3. Assume the US wants to open up trade with Sweden in the hot tub market. Assume that the price in Sweden for hot tubs is higher than it is in the US. Will the US be an importer or an exporter of hot tubs? Explain, in economic terms, why you answered how you did. Draw a properly labeled graph to support your answer. (5 points).

4. Assume the US wants to open up trade with Sweden in the hot tub market. Assume that the price in Sweden for hot tubs is lower than it is in the US. Will the US be an importer or an exporter of hot tubs? Explain, in economic terms, why you answered how you did. Draw a properly labeled graph to support your answer. (5 points).

5. Who wins, the buyers or the sellers, when exports occur? Explain, in economic terms, why you answered how you did.

6. Who wins, the buyers or the sellers, when imports occur? Explain, in economic terms, why you answered how you did.

7. What is a tariff? Besides raising revenue for itself, why would the US government want to impose a tariff? Give an example of how it works based on a product of your choice, including what happens to the price of your good.

10. Who "wins" and who "loses" after a tariff is imposed? Explain, in economic terms, why you answered how you did.

11. Explain one way that politics affects international trade. Give an example of how it works.