1.Define a tariff. In what circumstances do you think tariffs are fair? When are they unfair and economically unproductive?

A tariff is a tax placed on an imported commodity. The tariff is also the most common instrument of protection in a country wanting to keep cheap exports from competing against domestic products. The tariff makes the domestic industry producing a similar good more competitive. Answers about fairness will vary; but the point that tariffs are never economically productive should emerge from the discussion.

2.Expand on the concept of comparative advantage mentioned in the article. Think of several countries and products to show an example of comparative advantage in action.

Comparative advantage is the ability to produce a good or service at a lower opportunity cost than your trading partner. One country has a comparative advantage in one activity whenever it has a lower opportunity cost of performing that activity. Comparative advantage is always a relative concept. In other words, comparative advantage comes from those activities that yield the highest return for the time and resources used in producing the good or service.

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