Enrollment Rates

Question 1

Answer all the questions on 5-6 pages

International Trade Theory and Policy

1) Explain the meaning of each of the three basic “theorems” of international trade theory; i.e. the “H-O”, “FPE” and “Stolper-Samuelson” (SS) models, including the assumptions under which the hold.

2) After WWII every economist was sure that the US was a relatively capital-abundant economy (having not been directly bombed during the war), but V. Leontiev cast doubt on this. Explain.

3) Suppose that the Production Possibilities Frontier (PPF) now expands. Explain:

a) the Rybczynski Theorem

b) the possibility of “immiserizing” growth

c) the “Metzler” paradox

Question 2

One of the United States’ most important exports is providing higher education to international students. Please read the following and consider the impact of dropping enrollment rates of international students in US colleges and universities on the local and global economy. What are the short-term impacts and the longer term impacts? What factors account for the drop?

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