Trade and Globalization

Part II. (80 points) Essay questions.

Please refer to the following website and read the parts listed below and answer the following questions. Trade and Globalization: https://ourworldindata.org/trade-and-globalization

1.(20 points) Refer to the part of Trade generates efficiency gains, explain the correlation between international trade and economic growth, explain the causality evidence from both cross-country and firm levels.

2.(30 points) Refer to the part of Trade has distributional consequences, explain the conceptual relation between international trade and household welfare; explain the relation between trade, jobs, and wages; explain the relation between trade and cost of living.

3.(30 points) Refer to the part of Explaining trade patterns: Theory and Evidence, explain comparative advantage and its significance in explaining international trade; explain the evidence supporting the explanatory power of comparative advantage.

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