Assignment: Comparative and Absolute Advantage in InternationalTradeInthis Assignment, you will be assessed on the following outcomes:GEL-1.1:Demonstrate college-level communication through the composition of originalmaterials in Standard American English.PC-4.1:Assess the value of multiculturalism and diversity in a global environment.AssignmentAn effective understanding of economics forms thefoundation of every manager’s, entrepreneur’s, bureaucrats,and leader’s ability to analyze business situations and to develop anappropriate response. The globalization of business is a fact of life for allbusiness professionals. One of the most contentious issues in today’s globalbusiness world is the issue of closing local manufacturing facilities, layingoff those American workers, and re-opening the same manufacturing facility inan Asian, or other third world country. Look in your own closet at the clothes you havepurchased. Pick any 10 items of clothing and look at the labels in thoseclothes. Where were they manufactured? How many of the 10 items weremanufactured here in America? If that same exercise had been done 50 years ago,(approximately the 1970s), all the clothes you owned would have been manufacturedin textile mills in the Southeastern United States (Georgia, Alabama,Mississippi, North Carolina, South Carolina, etc.). All those Southeasterntextile mills are now closed, and people buy foreign made clothes. If you wereable to go further back in time to 150 years ago (1870s), the clothes you ownedwould have been manufactured in textile mills in the Northeast United States(Maine, New Hampshire, Vermont, Massachusetts, etc.). Yet, by the early to mid-1950s,those Northeastern textile mills were closed and their workers were out of ajob. The mills had all relocated to the Southeast during the years followingthe Civil War.Many people say that we should ban the import of theseforeign made clothes, so that more workers in American clothing textile millscould have jobs. Others say that we should continue to import clothing because importedclothing is relatively less expensive and more people can afford to buy moreclothes at these low prices. Still others say that we should put an import tariff(an extra tax that would be paid when we buy these imported clothes), makingthe price of imported clothing comparable to the price of clothing made in theU.S., and, therefore, encouraging American consumers to buy American-madeclothing.QuestionsBefore answering the following questions, review theAssignment Checklist. Then, in a separate Word document, answer the followingquestions in a 3–4 pageexpository research paper:1. Considering what you havelearned about “comparative advantage” and relative “marginal opportunity costs,”discuss the advantages and disadvantages to all involved parties (Americanworkers, American consumers, foreign workers, and foreign consumers) ofcontinued importation and acceptance of foreign made goods into U.S. markets.2. Compare and contrast theadvantages and disadvantages of instituting an import tariff, or an outrightban on the importation of certain goods into U.S. markets.3. Include in your researchAmerican trade agreements such as the NAFTA (North American Free AmericasAgreement) and the proposed trade agreements of the FTAA (Free Trade Area ofthe Americas), TAFTA (Transatlantic Free Trade Area), and the Trans-PacificPartnership. What are the main pros and cons argued in favor, and against thesetrade agreements? Why do you think each party feels the way they do about theissues?4. In considering theforeign trade issue, discuss the benefits and challenges between Americans andthe cultures of the citizens of the various trading partner countries withwhich these trade agreements are made. Discuss the importance of yourability to understand and accept cultural differences in a global context. Whatrecommendations would you suggest to increase American understanding andacceptance of foreign cultures?Assignment Checklist:· Writeyour paper in a separate Word document.· Unlessspecified differently by your course instructor, save your Assignment to yourcomputer with the following file naming format: Course number_section number_Last_First_unitnumber· Yourtitle page should, at a minimum, contain the following information: Your Name,Course Number, Section Number, Date, and the Title of your paper· Writea 3–4 page paper (in addition to the title and reference pages) following APAformat with citations to any quoted, or paraphrased sources. Your writtenresearch should also be in Standard American English with correct spelling,punctuation, grammar, and style (double spaced, in Times New Roman, 12–point, andin black font). · Yourpaper should provide a clearly established and sustained viewpoint and purpose.· Yourwriting should be well ordered, logical and unified, as well as original andinsightful.· Aseparate page at the end of your research paper should contain a list of a minimum of three cited and referencedacademically credible references,in proper APA format.· Citeand reference your academically credible sources from the Kaplan Online Libraryand any other academically oriented online sources. Review the APA formatsfound in the Kaplan Writing Center. To access the KaplanWriting Center, select this link.· Reviewthe Rubric below to ensure all points have been captured in the paper.Directionsfor submitting your AssignmentBe sure to respond to all the questions usingthe critical elements listed in the Assignment Checklist and submit your paperto the Unit 2 Assignment Dropbox byTuesday, midnight ET of this unit.Unit 2 Assignment: Comparativeand Absolute Advantage in International TradeInternational TradeContent (30%)PossiblePossiblePointsEarnedDiscuss how theconcepts of Absolute Advantage and Comparative Advantage relate tointernational trade and discuss the attitudes both in favor of and againstthe U.S.’s continued encouragement of free trade. 12MulticulturalismContent (20%)Develop and discussyour recommendations for how to encourage Americans to have a more acceptingattitude toward other cultures and how that acceptance will further economicconditions world-wide.8Analysis (30%)Analysis and criticalthinking regarding the international trade12Writing (20%)Grammar, spelling, andparagraph composition.4References4List all of yourreferences according to APA format and in–text citations. Includes a minimumof three cited and referenced academically credible sources.LATE Paper Deduction0Total Points Earned40Criteriato be applied to the Multiculturalism Content (20%) of the paper:PC-4.1:Assess the value ofmulticulturalism and diversity in a global environment.No Progress0Student workdemonstrates no understanding or progress towards achievement of thisoutcome.Introductory1Student workdemonstrates the ability to identify multiculturalism and diversity issues.Emergent2Student workdemonstrates the ability to identify multiculturalism and diversity issues,and articulate them in a global context.Practiced3 or 4Student workdemonstrates the ability to identify, articulate, and explain amulticulturalism and diversity issue in a global context.Proficient5 or 6Student workdemonstrates the ability to analyze the benefits of multiculturalism anddiversity in a global context.Mastery7 or 8Student work demonstratesthe ability to analyze the benefits and challenges of multiculturalism anddiversity in a global context and recommend solutions.