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International Trade
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- - Know the basic facts about U.S. trade patterns.
- - Understand the macroeconomic impact of international trade.
- - Understand why specialization and trade increase both production possibilities and consumption possibilities.
- - Be able to explain comparative advantage using opportunity costs.
- - Know how to determine the limits to the terms of trade.
- - Be able to calculate the gains from specialization and trade at given terms of trade.
- - Be able to show how trade allows a country to consume beyond its production-possibilities curve.
- - Recognize the sources of pressure that result in restricted trade.
- - Know some of the arguments used by those wishing to restrict trade.
- - Be able to discuss tariff and nontariff barriers to trade.
- - Be able to discuss the reasons for the rise of regional trading arrangements.
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