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1. Do a search on your case study country and provide a discussion of the country's trade policy.
2. From an historical approach Mercantilism was the trade policy of the day starting in the 1700s. Provide a brief discussion of mercantilism as a theory. Do any countries practice mercantilist policies today?
3. In his book An Inquiry into the Nature and Causes of the Wealth of Nations first published by Adam Smith in 1776, Smith countered mercantilist thought with an argument for the following a country's absolute advantage as deriving the most benefits from trade. Explain the law of absolute advantage.
Provides a significant discussion of the benefits and costs of free trade and the different trade restrictions that countries can use.
4. What are the best arguments for trade restrictions? What are the worst?
5. What types of trade restrictions does your case study country use? What are the justifications put forward for these restrictions?
6. As an economist I contend that most trade restrictions are designed to redistribute income (change the winners and losers from free trade) and not as a tool to increase efficiency in the use of resources. Hard concept - think about. Discuss.
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Currently, each outlet manage its ordering independently. Demand at each retail outlet averages 4000 units per week. Each unit costs $200, and Hi-Tek has an annual holding cost of 20%. The fixed cost of each order (administrative + transportation)..
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