1. Read the article about Asia’s Food needs attached here and answer the following questions.
a. David Ricardo was the first to show that trade benefits both importers and exporters. Briefly explain the Ricardian theory and then apply it to the case of Thailand as mentioned in the article.
b. China imports soybean crops. Explain the benefits of this trade in terms of welfare gain for China and the exporting country with the help of a graph. Use a constant opportunity cost PPF as in Ricardian theory.
c. What does non-tariff barriers mean? Explain with the help of a few examples (Please use graphs)
d. According to the article, what are some ways of boosting agricultural productivity other than pro-trade policies?

2. Read the attached WSJ article on Free Trade agreements, “US Blocks China on New Trade Zone”, and answer the following questions.
a. What does a Free Trade agreement mean?
b. Are FTAs against the principle of Most Favored Nation of the WTO? Explain briefly.
c. Which two FTAs are discussed in this article? Mention the countries which might be signatories into these FTAs?
d. According to the article, what are the costs and benefits of the two FTAs to China?
e. Do you think a US-China FTA would impact US trade with other countries like Mexico?
f. Read the note on China-ASEAN Treaty in your book, Chapter 9. Compare the two articles in terms of gains and losses to the countries involved.

3. Write short notes on (Graph if possible)
a. Rybczynski Theory
b. Stopler Samuelson Theory
c. Leontief Paradox
d. Trade Diversion and Trade Creation effect Trade agreements

4. Read the attached WSJ article on US Sugar policy” US Sugar policy: Sweet for a FEW, Sour for Most” and answer the following questions.
a. What agreement has been signed between the US and Mexico?
b. What trade policy tool would bests describe this deal?
c. Why was this deal between US and Mexico signed in spite of NAFTA?
d. Does US have fair grounds to ask for a restriction of this nature?
e. Discuss this issue in the light of the new trade agreement the TPP.
f. What is the cost to the US of the farm support provided to the sugar growers? Discuss this in terms of deadweight loss.
g. Discuss the cost of the new agreement with Mexico in terms of deadweight loss to the US. Analyze with respect to gains or losses to consumers, producers, government etc. (Graph)

1. Read the article about Asia’s Food needs attached here and answe...