Problem Set _1b - Econ 181: International Trade Spring 2009...

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Econ 181: International Trade Spring 2009 Problem Set #1b (Due Tuesday, February 10, 2009) 1. Article Analysis—The Gravity Model : Read this article and answer the following questions. Steve Lohr, "Outsourcing Is Climbing Skills Ladder" , The New York Times, February 16, 2006. The URL is: http://query.nytimes.com/gst/fullpage.html?res=990CE1D9133EF935A25751C0A9609C8B63 a. The textbook rhetorically asks how large the outsourcing of service activities might become. According to the article, what fraction of U.S. and European multinational companies intends to change substantially the way they perform global research and development? In addition, is the amount of jobs in the research and development sector a significant part of the U.S. or European labor force? b. The article states China and India will attract the greatest increase in research and development projects. Is this claim consistent with the gravity model? c.
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This note was uploaded on 11/13/2009 for the course ECON 181 taught by Professor Kasa during the Spring '07 term at University of California, Berkeley.

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Problem Set _1b - Econ 181: International Trade Spring 2009...

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