International trade and financeBook info: Exploring Macroeconomics by Robert L.Sexton edition 8th

Wk. 14 Asgnt 1. What is the law of comparative advantage, and why is it important in international trade? 2. What are the commonly used arguments for the use of tariffs and other trade barriers? 3. What are the three main accounts in the balance of payments? Give an example of each. 4. Classify each of the following as debits or credits in the U.S. balance of payments. a. Americans buy chocolate from the Swiss. b. U.S. gives foreign aid to Bosnia. c. British investors purchase U.S. government bonds d. American tourists travel to Australia e. Volkswagen earns profits in the United States from its new cars f. Toyota builds a new plant in Ohio g. Capital Records sells rock and roll music in Sweden 5. Economists sometimes say that the current exchange rate system is a dirty float system. What does this mean