Chapter 3&9 Macro
concerns the strategy of bargaining, is that efforts should be made to get new industries started, emphasizes the belief that all countries should play by the same rules
A common argument in favor of restricting trade
lower than his or her opportunity cost of that good.
A person can benefit from specialization and trade by obtaining a good at a price that is
a limit on the quantity of imports.
A quota is
tariff
A tax on an imported good is called a
97 percent
About what percent of total world trade is accounted for by countries that belong to the World Trade Organization?
and David Ricardo both supported free trade.
Adam Smith
other countries have a comparative advantage over Vietnam and Vietnam will import textiles.
Assume, for Vietnam, that the domestic price of textiles without international trade is higher than the world price of textiles. This suggests that, in the production of textiles,
goods produced abroad and sold domestically.
By definition, imports are
imports
Goods produced abroad and sold domestically are called
the negative effects of third world exports on U.S. wages may be increasing.
In a 2007 New York Times article Paul Krugman wrote that
an ongoing experiment that confirms the virtues of free trade.
Most economists view the United States' experience with trade as
Trade can make everyone better off
Study of international trade most associated with
consume more goods than we otherwise would be able to consume.
The most obvious benefit of specialization and trade is that they allow us to
world price
The price of a good that prevails in a world market is called the
if it fails the country faces a choice between two bad options.
The problem with the protection-as-a-bargaining-chip argument for trade restrictions is
domestic producers of the good become better off, domestic consumers of the good become worse off, the gains of the winners exceed the losses of the losers.
When a country allows international trade and becomes an exporter of a good,
the gains of the winners exceed the losses of the losers.
When a country allows international trade and becomes an importer of a good,
the nation's consumers of corn become better off and the nation's producers of corn become worse off.
When a nation first begins to trade with other countries and the nation becomes an importer of corn,
creates winners and losers, regardless of whether Isoland ends up exporting or importing steel.
When the nation of Isoland opens up its steel market to international trade, that change
Economists' opposition to trade restrictions is still based largely on the principle of absolute advantage.
not true
