1. What is international business?
2. What is the distinction between exporting and importing?
3. Why should you be concerned about international business?
4. When two countries trade, relative prices of goods converge, causing relative prices of inputs such as labor and capital to converge. Do you agree with the statement? Why or why not?
5. Do you agree that trade contributes to growth by increasing market size and stimulating the development of new goods, ideas, and ways of doing things? Explain
6. What are the most typical arguments for trade restrictions?
7. Why do governments apply tariffs on imported goods?
8. Consumers benefit from the expanded range of goods offered as a result of trade. Do you agree with this statement? Why or why not?
9. Explain the Heckscher-Ohlin model.
10. Discuss the benefits and drawbacks of trading.