1. What is globalisation and how does it affect domestic businesses? In your discussion, include both positive and negative impacts of globalisation. 2. When you compare Absolute Advantage Theory and Comparative Advantage Theory, which one appears to be more practical, and why? Also, explain how benefit from trade arises based on this theory using a numerical example of 2 countries producing 2 products. 3. Donald Trump, president of United States of America, announced imposition of tariff on Chinese imports in the recent past. Based on your understanding of the first 3 topics of this unit, (i) what could have been the reason/logic behind such a comment/decision, and (ii)what are the implications of such an intervention on domestic consumers?
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