International Trade Assessment
Each question needs to be
at least 75 words each.
1. The movement of capital and labor generates overall gains
for both the source and host countries. In what ways does this happen?
2. What does foreign direct investment (FDI) really mean?
3. Explain differentiated goods and how you understand it in
the context of monopolistic competition. In other words, why do countries trade
so many different variations of, by definition, the same product?
4. Please explain the gravity equation and what do we really
apply it to?
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