Read Annex 2 of the "President's 2000 Annual Report on the Trade Agreements Program."

Questions

1. During the past three decades, what has happened to the volume of trade as a share of U.S. GDP? (Hint: see Figure 1)
2. Is this result consistent with the discussion of international trade in your text?
3. What are some of the major factors that account for this change?
4. What are the implications of this change in the volume of world trade on the "gains from trade?" How does a typical consumer benefit?