3. Why are producer interests likely to outweigh consumer or citizen interests when it comes to the setting of trade policies?
1. (a) Explain the new trade theory. What is the role of economies of scale in this theory?
(b) Discuss the implications of the new trade theory.
2. What is outsourcing? List and discuss the types of policies, according to Blinder, that must be changed in order to achieve the benefits associated with outsourcing.
4. List and discuss political and economic reasons for governments intervening in the markets.