HW # 8: PROBLEM SET Debate: Free Trade v. Protection 1) List the arguments in favor of a Free Trade policy and, alternatively, the arguments in favor of a Protectionist policy. Which policy should be adopted, and why? 2) What is "Import Substitution Industrialization" (ISI)? Should a country adopt an "Import Substitution Industrialization" (ISI) policy or an "Export Led Growth" (ELG) policy and why? 3) Use a simple diagram to show how a customs union can cause both trade creation and trade diversion. Why is trade diversion undesirable