MICROECONOMICS

Globalization and Trade

Absolute and Comparative Advantage
Name:
Year and Section:

DIRECTION: Respond to the following prompts with a minimum of 250 words essay. Indicate
your agreement or disagreement with the position and why. Feel free to put additional references
to your answers.

Many opponents of free trade use the following example to illustrate its negative effects:

“Juan de la Cruz started the day early having set his alarm clock (MADE IN
JAPAN) for 5AM. While his coffeepot (MADE IN CHINA) was perking, he shaved
with his electric razor (MADE IN SINGAPORE). He put on his oversized shirt
(MADE IN TAIWAN), designer jeans (MADE IN HONG KONG) and Balenciaga
sneakers (MADE IN U.S.).

After cooking his breakfast in his new air fryer (MADE IN BERLIN) he sat down
with his calculator (MADE IN FRANCE) to see how much he could spend today.
After setting his watch (MADE IN SWITZERLAND), he got in his car (MADE IN
GERMANY) filled it with gas from SAUDI ARABIA and continued his search for
a good paying FILIPINO JOB.

At the end of yet another discouraging and fruitless day while on a lockdown due
to the virus (MADE IN CHINA), he checked his email on his computer (MADE IN
INDIA) then decided to relax for a while. He put on his Crocs footwear (MADE
IN VIETNAM), poured himself a glass of wine (MADE IN FRANCE) and turned
on his TV (MADE IN MEXICO), and then wondered why he could not find a
good-paying job in the Philippines.”

Discussion Questions:

1. Should the Philippines encourage free trade with its trading partners or seek a
more protectionists approach? Take a stand on this issue. It is not enough to argue
BOTH sides of the issue. Support your opinion with good economic reasoning.

Who benefits from your approach and who loses? Why? Include impacts on both
Filipino citizens and the citizens of the other countries with whom we trade.
 Some common search topics include employment, tariffs, quotas, and free trade
agreements.

2. Find a recent news article or editorial (past 12 months) that supports your point of
view. Summarize the article, indicate how it supports your answer to Question
No. 1, and include the link or URL of the article.