By the end of this chapter you will be able to:
1. Use comparative advantage to show how countries can gain from specialization and trade.
2. Given a particular two-country, two-good situation, determine which country will trade which good and indicate the feasible range for the terms of trade.
3. Given a particular two-country, two-good situation, and specific terms of trade, use consumption possibility frontiers to demonstrate that trade can be beneficial.
4. Evaluate common arguments in favor of trade restrictions.
5. Distinguish between a quota and a tariff.
6. Use demand and supply analysis to outline the costs involved in the imposition of a tariff.
7. Use demand and supply analysis ...