DB2: questions related to Foundations of Modern Trade Theory: Comparative Advantage - respond both questions by one paragraph for each.
1st Ans -
There are NO jobs that Americans won’t do. There are jobs they won’t do for the pay offered. Example, Picking strawberries is a difficult, back breaking job. In addition to getting almost no money, you work in conditions that put your physical well being at risk. Now, if farmers had to pay Americans to do the job, they would have to pay $15 or $20 an hour. The price of strawberries would go up by 25%, maybe 50%. People would consume less strawberries and a lot of land that is used now to grow strawberries would be used to grow other things. One reason it is so labor intensive is because there are no machines that can do a good job picking strawberries. The berries are too delicate and the berries ripen at different times on a single bush. So, no machines, but why would there be? Would you pay $250,000 to replace 5 workers who earned $25,000 a year? However, if they had to hire Americans and pay them $50,000 a year (or more), then it starts to make sense to spend the money on a machine. Those people who invent machines would start inventing and before too long, those workers would be replaced by machines. You would need factories to make the machines, and workers to repair and maintain the machines. More people would lose their job than would get new jobs taking care of the machines, but that is the way it always goes. Thus, we found that its not a impossible task to keep low-skilled job in the US.
2nd Ans -
Yes, to an extent you can measure a gain from trade being how much will it cost to make a product verses importing it, how will it create jobs, how will it improve in quality if it is made. Sometimes it is better to buy things made from somewhere certain because the quality difference like cars (debatable) but some people prefer GM cars because they say they are made better or last longer.
DB2: questions related to Foundations of Modern Trade Theory: Comparative Advantage - respond both questions by...
There are two questions related to Foundations of Modern Trade Theory: Comparative Advantage 1.Will it be impossible to keep low-skilled jobs in the U.S.? 2.Is it possible to estimate the gains from trade?
There are two questions related to Nontariff Trade Barriers Each student should respond both questions by one paragraph for each. 1. Describe some of the differences between tariffs and quotas? 2. What are the intent and impact of domestic content requirements?
DB#3: Two questions related to Sources of Comparative Advantage - answer questions by one paragraph for each. 1. Explain how immigration and trade may worsen wage inequality, and how college education may mitigate against that. 2. How does Staffan Linder explain world trade patterns?
David Ricardo's theory of comparative advantage says that: Multiple Choice the benefits of free trade is a short-run phenomenon that will inevitably be reversed by political rent-seeking behavior. free international trade increases global economic welfare. All of the options. international trade is a zero-sum game in which one trading partner gains the expense of another trading partner. free trade is a necessary, but not a sufficient, condition for mercantilism.
Opportunity cost, comparative advantage and gains from trade. Ali and Barb both like making bread and jam. In one day Ali can make 10 loafs of bread OR 20 jars of jam. In one day Barb can make 6 loafs of bread OR 36 jars of jam. 3g) Has specializing in their comparative advantage good made them better off overall? Explain your answer fully, including explaining what is meant by ‘comparative advantage’.
5 and 6 please Chapter 3&18 Intl Trade, Comparative Advantage Mexico PPC Product ABCDE Avocados Soybeans 0 20 24 40 60 1510 9 5 0 U.S. PPC Product RSTUV Avocados 0 30 33 60 90 Soybeans 30 20 1910 O Comparative Advantage Questions 1.A What is Mexico's opportunity cost for producing Avocados? 1.B What is Mexico's opportunity cost for producing Soybeans? 2.A What is the U.S.'s opportunity cost for producing Avocados? 2.B What is the U.S's opportunity cost for producing...
David Ricardo's theory of comparative advantage says that: Multiple Choice free international trade increases global economic welfare. free trade is a necessary, but not a sufficient, condition for mercantilism. All of the options. the benefits of free trade is a short-run phenomenon that will inevitably be reversed by political rent-seeking behavior. international trade is a zero-sum game in which one trading partner gains the expense of another trading partner.
Opportunity cost, comparative advantage and gains from trade Ali and Barb both like making bread and jam. In one day Ali can make 10 loafs of bread OR 20 jars of jam. In one day Barb can make 6 loafs of bread OR 36 jars of jam. 3a) What is Ali’s opportunity cost of making 1 loaf of bread? (Include a definition of opportunity cost). 3b) What is Barb’s opportunity cost of making one loaf of bread? 3c) If they...
1. Did the concept of comparative advantage strengthen or worsen the case against Mercantilist trade doctrine? Why? 2. Is it possible for trade to take place in the Classical world of David Ricardo without complete specialization of production in both countries? If so, when? Who will receive the gains from trade in this instance? Why? I need clear explanations. Many thanks
Can a country have comparative advantage even though it has an absolute disadvantage? Make up a numerical example to show this. Someone tells you, “I do not understand how Bangladesh with its low productivity can compete in the world markets at all and even trade with the U.S. Surely the U.S. is better at producing everything relative to Bangladesh!” Ross Perot, a former presidential candidate, said in 1993 that the introduction of free trade between the U.S. and Mexico, would lead to...