Theory of Competitive Advantage
Based largely upon Ricardo's Law/Theory of Comparative
Advantage, trade theory predicts/suggests that "It doesn't matter whether a country has high or low labor wages. In both cases, both types of countries would benefit from trading."
Task:
Address, reconcile, or explain why-at this stage in U.S.- China trade relations-the balance of trade in goods and services between the two countries appears to disproportionately favor China.
Hints:
 
Are any non-trade benefits accruing to the U.S. that could-
in some measure–justify or rationalize the imbalance?
 
Don't overlook exploring the role that "opportunity cost" is likely to play–in a broader “systems” context–in Sino- American relations.
 
Report: Compose an APA- compliant report/paper adhering to the following format:
1.Title Page
2.Abstract
3.Problem Statement
4.Introduction/Background
5.Discussion
6. Conclusion
7. References
1200-1500 words
 
Feel free to use some of the following sources, in addition to other SCHOLARY SOURCES:
http://www.econlib.org/library/Enc/bios/Ricardo.html
http://www.thefreemanonline.org/columns/comparative-advantage/
http://www.ustr.gov/
http://www.youtube.com/watch?v=3wCc0uJ-Cxo&list=PL82B772CE0EF7C618&index=12&feature=plpp_video