ECON 103 Principles of Microeconomics

Essay Spring 2021

September 19, 2021

This problem set counts 30% to the total mark. Due Thursday October
14th 2021 (end of week 7). Please upload in Blackboard SafeAssign. Only pdf
and MS Word les are permitted. Please convert Pages les to pdf. Size of
the Essay is 1000 words as a continuous essay. You may consider the aspects
below. Important marking criteria are readability and the ow of arguments.
For a high mark you should nd further information in the internet. Carefully
consider the citation guidelines and plagiarism policy.
Based on Paul Krugman's Essay What Do Undergrads Need To Know About
Trade? AER 83(2), 1993, describe the driving forces of international trade in
the USA. Consider the following aspects:
1. Is international trade essentially dierent from business within the coun-
try?

2. Does competition play a role of in trade?

3. Why is productivity important for the welfare of countries?

4. In the light of comparative advantage, identify the 'high-value sector' of

an economy.

5. Will barriers to trade likely create jobs?

6. Should the government protect domestic rms from international compe-

tition?