Free Trade & Protection: Comparative Advantage, Tariffs & Subsidies

Absolute and comparative advantage and the sources of comparative advantage; the gains from specialisation and trade using the demand and supply model, the PPF model and opportunity cost; the benefits of trade liberalisation; types of protection (tariffs, subsidies, quotas); arguments for protection; and the impact of tariffs and subsidies using the demand and supply model on trade, market efficiency and the macroeconomy.