World trade fell in 2001.

Sites to Visit for More Information:

1. The role of the World Trade Organization
2. World Trade Organization
3. World Trade Blocs

Questions:

1. What is comparative advantage?
2. What opportunity cost does a country face when it specializes and then trades? Explain your answer using a diagram.
3. Show on your diagram drawn to answer question 2 how specialization and trade can lead to greater world production.
4. What is the WTO and what is its role in the world economy
5. Do you support freer trade in the world economy? Why or why not?

Chapters: 2, 33

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