Lesson 1.6 Group Discussion

#1 Review:

What's the difference between absolute advantage and a comparative advantage? Give an example.

#2 Thinking Question:

When should we use a tariff versus an import quota?

#3 Application Question:

Imagine it is March 2020, and the COVID-19 outbreak in China is still recent news in the world.

Let’s further imagine that you are a neighbor country to China, and you import a lot of items from China, including food, automobile parts, and textiles. COVID-19 has not hit your country yet.

Would you impose any trade restrictions on China? If so, what would you do?

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