International Trade

Question 1

Frieden 2019

Answer 1

Goal of trade is to realize the benefits of specialization. Comparative advantage (Heckscher-Ohlin Trade Theory), protectionism (Stolper-Samuelson Theory)

Question 2

Rho and Tomz 2017

Answer 2

Connection between economic interests and policy preferences (depends on causal beliefs. Most voters don’t understand protectionist consequences —> hard to choose policy). College grads self interest, non college altruism

Question 3

Davis 2012

Answer 3

States use international adjudication in order to manage domestic political pressure and pursue international cooperation. Constrained executives are more likely to be litigious

Question 4

Guisinger 2017

Answer 4

Trade reshaping U.S. industry —> uncertainty for individuals.
Increased American comparative advantage in capital-intensive services but decreased traditional industry.
American knowledge on trade decreased