Learning Outcome Statements

1. GDP vs. GNP

a. compare gross domestic product and gross national product;

2. International Trade

b. describe benefits and costs of international trade;

c. distinguish between comparative advantage and absolute advantage;

d. explain the Ricardian and Heckscher-Ohlin models of trade and the source(s) of comparative advantage in each model;

3. International Trade Restrictions and Agreements

e. compare types of trade and capital restrictions and their economic implications;

f. explain motivations for and advantages of trading blocs, common markets, and economic unions;

g. describe common objectives of capital restrictions imposed by governments;

4. The Balance of Payments

h. describe the balance of payments accounts including their components;

i. explain how decisions by consumers, firms, and governments affect the balance of payments;

5. Trade Organizations

j. describe functions and objectives of the international organizations that facilitate trade, including the World Bank, the International Monetary Fund, and the World Trade Organization.