*1. Elaborate on the Factor Endowments Theory. This theory is based on the Comparative Advantage reason for trade, which stems from cost.
*2. Expound on the Economies of Scale theory of Paul Krugman, as a reason for trade, which also relates to cost.
*3. Analyze the reasons China has a twin surplus. What are the repercussions of this fact over a long period of time.
4. Describe the different accounts of the Current Account of the balance of payments.
5. Two factors influence exports and imports of goods and services. They are competitiveness of the nation and the income level of it. Expound.
6. Discuss the trilemma
7. Discuss the type of goods and services, which nations trade mainly. Ascertain that you separate poor from rich nations in trading. Also, what is the direction of the majority of trade?
