RCBC Economics 203 Journal 2: International Trade Please read the following articles: http://www.bbc.com/news/business-32498715 http://www.bbc.com/news/business-34451423. Please answer the following questions and justify your answers in-depth. Please answer using Microsoft Word and upload your document into the journal. A) Please list the 12 countries involved in the trade deal. Please make a table attempting to match some of the countries mentioned with what you believe their comparative advantage industries might be (based on the "TPP trade deal: Who are the winners and losers?" article). Do those industries require more labor (workers) or capital (money, machines, knowledge, skill, etc.)? Country Comparative Advantage Industries Capital or labor? For parts B-F, assume there are two goods. The two goods can be considered "laborintensive good" (a good that involves a lot of workers) and "capital-intensive good," (a good that involves a lot of up-front investment). Also pretend that there are only 2 countries in the deal—the US and a supercountry of the 11 nations that make up the rest of the deal (Supercountry). B) Come up with a production pattern for how much of the goods each country can make in a year so that the US has a comparative advantage in the capital-intensive good and Supercountry has a comparative advantage in the labor-intensive good. Additionally, make it so that the US has an absolute advantage in both goods. Fill in the chart with these numbers (e.g. US produces 5 million capital goods/year, 2 million labor goods/year) US Supercountry (rest of the deal) Capital-intensive good Labor-intensive good C) Draw the individual PPFs for the US and Supercountry. Put labor-intensive goods on the x-axis. Label your axes, your intercepts, and which graph belongs to which agent D) Draw the combined PPF for the US and Supercountry if they trade. Put laborintensive goods on the x-axis. Label your axes, your intercepts, and which graph belongs to which agent E) You are President Trump's economic advisor. Please make a case for why you think the deal would benefit the US economy by explaining the PPF (100 words) F) Outside of economics, why might you think the United States, at the time under President Obama, try to sign a trade deal with, in particular, these Asian countries? (100 words) G) From what you have seen in the world, does trade between countries ultimately benefit or hurt international relations between those countries? Why? (100 words) H) A lot of workers in the US are angry about the deal and have found vocal supporters of their cause in people like President Trump and Senator Sanders. The United States ultimately ended up backing out of the deal. Using your example PPF where the US has absolute advantage in both goods and comparative advantage in the capitalintensive good, explain why workers might be angry about this deal. (100 words) 
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