Comparative and Absolute Advantage.
If you were President of the US and you were making decisions ontrading, would you rather have a comparative or absolute advantage in trading? Can you have both a comparative and absolute advantage in trading? If so, what if at all would be the benefit for your country totrade with any other country?
Equity versus Growth.
For a developing country to grow, it needs capital. The major source of capital in most countries is domestic saving, but the goal of stimulating domestic saving usually is in conflict with government policies aimed at reducing inequality in the distribution of income. Comment on this tradeoff between equity and growth. How would you go about resolving the issue if you were the president of a small, poor country?