Explain why the deindustrialization of India and China after 1800 is consistent with trade based on comparative advantage.

Explain two reasons that countries might want to industrialize even if they have a comparative advantage in agriculture.

Tariffs are sometimes used to protect "infant industries" in order to aid industrialization. Outline the logic behind these policies (i.e. how are they supposed to work and what are the intended consequences).

For much of the nineteenth century, international treaties precluded Japan from implementing significant tariffs. However, they were able to achieve similar protection for their industries using subsidies. Explain why these two policies have similar effects.

Outline two possible drawbacks of "infant industry" protection.