Follow the instructions below to complete the assignment.

Instructions:

1.Determine the trade balance between the U.S. and China (or any other country) for the most recent five-year period.

Illustrate the trend over this period with a graph of the data.

2.Compare and contrast absoluteadvantage,comparativeadvantage,andopportunitycosts of both countries.

3.Suppose that an American worker can produce 1000 shirts or 200 computers, while a Chinese worker can produce 1000 shirts or 100 computers.

In the US, what is the opportunity cost of producing an additional shirt (measured in terms of foregone computers)?

4.In China, what is the opportunity cost of producing an additional shirt (measured again in terms of foregone computers)?

5.Compareand contrast tariffs, quotas, and other barriers to trade of both countries. What are the benefits of reducing barriers?