What are the effects of transportation costs on international trade patterns?

2. Explain how the international movement of products and of factor inputs promotes an equalization of the factor prices among nations.

3. How does the factorendowment theory differ from Ricardian theory in explaining international trade patterns?

4. The factorendowment theory demonstrates how trade affects the distribution of income within trading partners. Explain.

5. How does the Leontief paradox challenge the overall applicability of the factorendowment model?

6. According to Staffan Linder, there are two explana tions for international trade patternsone for manufactured goods and another for primary (agricultural) goods. Explain.

7. Do recent world trade statistics support or refute the notion of a product life cycle for manufactured goods?

8. How can economies of scale affect world trade patterns?

9. Distinguish between intraindustry trade and inter industry trade. What are some major determinants of intraindustry trade?

10. What is meant by the term industrial policy? How do governments attempt to create comparative advantage in sunrise sectors of the economy? What are some problems encountered when attempting to implement industrial policy?

11. How can governmental regulatory policies affect an industry's international competitiveness?

12. International trade in services is determined by what factors?