1. "ASEAN is a successful trade bloc". Explain the statement.
2. Which theorem is derived from the assumption in the Heckcher-Ohlin model that the two countries share the same technology and that markets are perfectly competitive? Discuss this theorem.
3. Critically examine the strategic trade theory.
4. Distinguish between trade creation and trade diversion. "Trade creation is always welfare increasing while trade diversion may be welfare reducing". Explain this statement. (Please answer with diagram)
5. Explain the formation and growth of European Union.