Tutor profile: Phillip D.

What conclusions would a Realist draw from a state entering into a customs union with neighboring states? What conclusions would a Liberal-Internationalist Draw? What would both groups say about the future development of the agreement?

A Realist would believe that the states are each seeking to establish an economic advantage by expanding markets for their trade goods. A Realist would believe that the union would be maintained so long as it was to the advantage of the members. A Liberal-Internationalist would believe that the states have established this union in an effort to facilitate trade and economic growth as well as forging stronger commercial ties. A Liberal-Internationalist would believe that the union would most likely expand beyond a customs union as growing commercial bonds bring the economies of the nations together and provide benefits for all parties.

At what point is a firm considered to be "profit maximizing"?

A firm is considered to be "profit maximizing" when it is producing at a point where Marginal Costs and Marginal Revenue meet.

What reasons are commonly cited for Germany's entrance into the First World War?

The reasons for Germany's entrance into the First World War are typically cited as support for Austria-Hungary's declaration of war on Serbia and the mobilization of the Russian Empire for war against Austria. Historians also often cite a belief that German military leadership felt that if a war with the Russian Empire was to occur it would be better to have it before the Russian Army finished its modernization.