Directions:  Click on the "file" item at the top left of the browser window.  Click on "Save as..." from the pull down menu.  Do the necessary reading then answer the questions in the file you just saved.  When you are all done then send me your answers as email.  The best thing to do is to include the file with the questions and your embedded answers as an attachment.

NAME:________________________________-

1. Distinguish between comparative and absolute advantage.

2. Why is there so much trade between the U.S. and Mexico if Americans can produce more of both corn and cars, say, from the same amount of resources?

3. If Ricardo's proposition concerning free trade is so compelling, why did it take us so long to create NAFTA?

4. What barriers to trade can be erected by a government?

5.  What sorts of rationale are offered for creating barriers to trade?