comparative advantage in capital intensive goods and services
For this last problem set, refer to and cite class notes, readings, further readings, and outside sources. Each question should range from 500-750 words.
- Say the United States, Malaysia, South Korea, and Vietnam are considering a trade pact (TPP in 2015). The US has a comparative advantage in capital intensive goods and services, the three Asian countries in manufacturing. Discuss and detail which kinds of sectors and actors will be the ‘winners’ and ‘losers’ of the trade deal in each country, and what the relative political positions of each constituency in those countries will be to supporting the deal—or not.
- Contrast the reports by Hufbauer and Lu vs. Chapter 2 of the UNCTAD Trade and Development Report (from class readings). What are their main conclusions? What is the key supporting evidence for each? What explains why each piece essentially covers the same time period but arrives at such different conclusions?
