Question
You work for Debbie Wasserman Schultz, a member of the US House of Representatives from Florida's 23rdCongressional district. Wasserman Schultz is generally sympathetic to free
You work for Debbie Wasserman Schultz, a member of the US House of Representatives from Florida's 23rdCongressional district. Wasserman Schultz is generally sympathetic to free trade, and has hired you to help her critique the arguments of anti-trade politicians and pundits.On your first day of work, she hands you a stack of editorials to analyze, beginning withthe editorialFree Trade: You're Doing It Wrong, by Daniel Altman, which appeared in the February 4, 2013 edition of Foreign Policy (reproduced after this question).
a) Wasserman Schultz wants you to evaluate Altman's assertion that "though two countries that trade with each other [achieve] gains from trade, their people won't necessarily share those gains equally." Under what assumptions is this claim true? Under what assumptions is it false? Please explain your answer in a short paragraph of and explicitly refer to the theoretical frameworks you have learned in this unit using one or more diagrams. (6 Marks)
b)Wasserman would also like you to explain why Altman believes that "a country that opens its markets is always richer as whole". That is, what does Altman mean by the phrase "each new transaction creates its own gains from trade." Please explain your answer in a short paragraph and explicitly refer to one of the theoretical frameworks you have learned in this unit using one or more diagrams. (6 Marks)
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