[Orgmode] Questions about lists and export to latex

[RC]

Hi,
 I have a couple of questions about lists in org-mode and exporting to latex.
I have attached a example file that illustrates this behavior.
1) When I hit tab on the last item in a list, everything until the next heading
is folded under that item. Is this expected behavior, and is there a way to turn
it off?
2) If I hit TAB after a blank line following a list, the indentation is such
that the new list (List 3 in the file below) exports as a sublist of the
preceding list. Is there a simple way to mark the end of the list?
Thanks for your help in answering thes questions.

RC 

* Heading 1
  List 1
  - Item 1
  - Item 2
  - Item 3

  List 2
  - Item 1
  - Item 2

    List 3
    - Item 1
    - Item 2

* Heading 2
  List 1
  - Item 1
  - Item 2