Home » Whizzenbart is a country with mountains to the west and rolling hill country sloping down to the ocean in the east.

Whizzenbart is a country with mountains to the west and rolling hill country sloping down to the ocean in the east.


20 million phones

50 million monitors

, answer the following questions

  1. As advisor to Whizznebart, discuss whether you should engage in trade with other countries. If so, should the basis of trade be comparative or absolute advantage? Define each of these terms and explain why you should use one approach over the other.
  2. What should Whizzenbart export and, if you recommend imports, what should they import from Gizmo and Evenland?
  3. If Gizmo begins to dump Smart Phones below cost into Whizzenbart, what would you suggest the government do and why?
  4. Is there a situation where a Free Trade Agreement makes sense between Whizzenbart and another country?
  5. What role would currency exchange rates play in your analysis of possible trade partnerships?

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