Concept Paper

A) Choose one (1) concept from the list of “Key Concepts,” and:

Key Concepts:

autarky
imports
exports
absolute advantage
comparative advantage
terms of trade
tariff
quota
infant industry
dumping

1. Illustrate (in words) the concept by using it in an analogy or a metaphor. Your response must contain at least 2 elements;

    The analogy or metaphor
    A brief explanation of why you see a parallel between the two things you are comparing

2. Use the concept in a contextualized and specific question. In other words, you are being asked to compose a question using the concept. To provide context, the question may be preceded or followed by a brief statement, but your response (meaning your concept question and statement) must have at least 5 elements;

It must contain a question
The question must explicitly use the concept
It must be a question that inquires about the relevance or importance of the concept
It must ask about an specific situation from the real world
It must use data or information (numerical figures, dates, names, locations etc.) from one or more the following sources;
Textbook Section Titled “Issue”
Textbook Section Titled “By the Numbers”
Textbook Section Titled “Around the World”
News Article from http://www.economist.com/
News Article from https://www.bloomberg.com/

B) In your own words, answer the following question. What is the difference between an infant industry and a key industry? Why do producers in both industries desire protection against foreign imports?

C) In your own words, answer the following question. Describe the difference between fixed and flexible exchange rates.