Read the following statements carefully and identify which among them represents an international trade. Discuss your answer in no more than 3 sentences. 1. Country F gave Country G 10,000 kilos of wheat. 2. Country H gave Country K 500 sacks of rice and Country K paid Country L 50 pieces of silver in return. 3. Country X paid Country Z 10 kilos of gold. Read the following statements carefully and identify which among the six identified factors that differentiate countries from each other could have influence the following realities enumerated below. 1. Pork products are prohibited in the Kingdom of Saudi Arabia where the center of Islam is located. 2. Marijuana is prohibited in the Philippines and is allowed in certain West European countries. 3. American and Western movies are nearly impossible to be shown in theatres in North Korea. 2.1. ECONOMIC SYSTEMS 2.2. LEGAL SYSTEMS 2.3. DEMOGRAPHICS 2.4. Natural Resources 2.5. CULTURE 2.6. POLITICAL SYSTEMSRead the following statements about Country H carefully and identify which among the identified Trade Theories have influenced this country to engage in each of the three transactions listed below. 1. Country H is exporting rice to Country J which is experiencing a famine. However, Country H limits its import of electronic products from Country J in order to protect the electronics industry in Country H. 2. Country H and Country K are producers of military equipment. Country H purchases more of its military equipment from Country K than from its local manufactures due to cost reasons. 3. Country H is exporting agricultural products as its territory is around 90% agricultural land. Trade Theories 1. Mercantilism This trade theory suggests that a country can improve its economic well-being by engaging into exports and controlling imports to accumulate wealth in the form of precious metals. At that time, gold was very precious for countries to dispose. 2. Neo-mercantilism A trade theory which holds that a government can improve the economic well- being of the country by encouraging exports and controlling imports. Precious metals are no longer consider here as a necessity.3. Adam Smith's Model According to Adam Smith, trade will take place as a result of countries having an absolute advantage in production of certain goods compared to other counties. There can be an absolute advantage if such country can produce products with less use of labor. 4. Theory of Absolute Advantage The theory of absolute advantage holds that nations can increase their economic wellbeing by specializing in the production of goods they can produce more efficiently than anyone else 5. Theory of Comparative Advantage The theory of comparative advantage holds that nations should produce those goods for which they have the greatest relative advantage. In terms of the previous example of two countries, WA and EA, and two commodities, meat and oil.6. Heckscher-Ohlin theory A trade theory that extends the concept of comparative advantage by bringing into consideration the endowment and cost of factors of production and helps to explain why nations with relatively large labor forces will concentrate on producing labor- intensive goods, whereas countries with relatively more capital than labor will specialize in capital-intensive goods 7. Leontief Paradox A finding by Wassily Leontief, a Nobel Prize winning economist, which shows that the United States, surprisingly, exports relatively more labor intensive goods and imports capital-intensive goods postulated that since the United States was relatively abundant in capital compared to other nations, the United States would be an exporter of capital-intensive goods and an importer of labor-intensive goods. 7. Factor Endowment theory This is a trade theory which holds that nations will produce and export products that use large amounts of production factors that they have in abundance and will import products requiring a large amount of production factors that they lack. 8. International product life cycle (IPLC) theory A theory of the stages of production of a product with new "know-how": it is first produced by the parent firm, then by its foreign subsidiaries, and finally anywhere in the world where costs are the lowest; it helps explain why a product that begins as a nation's export often ends up as an import. Under this concept, products are produced in different countries. Take the case of the Airbus Company, in producing some of its aircraft types, the body, engines, wings and other parts may be produced in different partner countries and finally assembled in France