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    Trade Policy and Offshoring Strategy

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    Please help me with the following questions :

    a. Why do nations trade with one another? (Ricardo's Comparative advantage)
    b. What is Dynamic Comparative Advantage? What are the implications of this for the current debate on "Outsourcing" and "Off-shoring?" (Vernon's Theory)
    c. What strategies should corporations adopt to minimize the impact of off-shoring on its employees?

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    Solution Preview

    1. Nations trade with one another based on the natural resources and/or business products sold within a country that may not be as plentiful in another country.

    2. Dynamic Comparative Advantage is when a pattern of comparative advantage has changed based on some outside factor such as time or technology. For example, the United States ...

    Solution Summary

    This solution explains the answers to a series of questions regarding trade policy and off-shoring jobs. It includes an explanation of dynamic comparative advantage and how it relates to outsourcing; it also provides a suggestion for how companies can minimize the impacts of off-shoring work on it's employees.