As a country begins to liberalize its capital account, what would you expect to happen to the difference between the interest rates for similar assets in this country and another country with open capital markets?

If wages are higher in the United States than in Brazil, then:

A) trade is still beneficial to the United States and Brazil. B) Brazil will not have a comparative advantage in the production of any good. C) the United States cannot have a comparative advantage in the production of any good. D) trade with Brazil will clearly lower wages in the United States.

While smoking is on the decline in the United States, China is still puffing away madly. That's not because the government is eager to protect its citizens from the hazards of smoking It's because China is eager to protect its own tobacco industry which is a state monopoly. Why did China announce in 2009 that it won't allow foreign companies to build new cigarette factories or enter joint ventures?

A) because China is concerned about the negative effects of smoking B) because China wants to protect the economic profits its state monopoly makes C) because China wants to protect jobs D) because China regulates the tobacco industry