Essay, Macro & Micro economics

Essay, Macro & Micro economics
I. Definitions. Define and EXPLAIN the following terms and or concepts. Create Examples to demonstrate.
* Theory of Reciprocal Demand
* Ricardian Trade Model
* Comparative Advantage
* Factor Endowment Theory
* Factor Price Equalization
* Stolper-Samuelson Theorem
* Inter-industry specialization
* Intra-industry specialization
* Domestic production subsidy
II. Essay questions. Answer both questions. Answer ALL parts of each question.
1. a) What is a tariff ? Explain the various types of tariffs.
b) Explain how each of the following may affect and/or lower the effective tariff rate:
Offshore Assembly Provision
Bonded Warehouse
Foreign Trade Zone
c) Using a large-nation model, explain the effects of a tariff. Consider both the gains and the losses.
d) What is an optimal tariff . Do you believe that it is achievable ?
e) How can tariffs be burdens for exporters ? How may it affect consumers discretionary income ?
2. a) How is a quota different than a tariff ?
Create a model comparing the effects of each.
b) What are policies that may be passed to protect domestic production ?
c) How may international trade be a substitute for labor migration ? Under what circumstances will labor be less likely to migrate ?
Create an example.