Collect Data on GDP for US and a group of country, as well as Total Exports for them. Calculate Index of Openness for these countries and compare between them. If US has lower index of openness than other countries, does it mean that international trade less important for US than other countries? Explain

Why do countries produce local goods when it is cheaper to import

Discuss the importance of terms of trade for countries.

Argentina and Brazil can produce cups and plates. Argentina can produce either 30 cups and 0 plates, or 0 cups and 30 plates. Brazil can produce 10 cups and 0 plates, or 0 cups and 20 plates. If they trade, how do they decide which country produces what? Explain.

Some groups of nations are forming trade blocs, like North America or Europe. Are regional trade blocs good for global trade or not?

1. Calculate the trade-to-GDP ratios for the two countries and answer the following questions. a. Put the ratios in the table. Estimates Import Export GDP Trade-to-GDP ratio Canada Q2 2023 704,535.0 682,469.0 2,198,984.0 USA Q2 2023 3,739.3 2,934.6 26,798.6 b. If your calculations are correct, the ratios are very different. How would you explain why the US ratio is so much lower than the Canada ratio?

Is it possible for a country to gain from trade even when it has lower productivity than its trading partner in the production of all goods? Is it possible for a country to gain from trading with a country that has much lower wages than it does itself? Use numerical examples to explain your answers to these questions.

In the previous problem, do we have a trade surplus or trade deficit?

If the United States produces 8 automobiles and Canada produces and Canada produces 2 automobiles, and the United States produces 8 units of lumber and Canada produces 4 units of lumber, should Canada trade with the U.S.? If so, what should be imported and what should be exported?

How big are exports and imports as a percentage of current GDP?