International trade online

Military uniforms: need not be produced domestically; uniforms aren't essentially to winning a war must be produced domestically or by a reliable ally; if you go to war you will still have a dependable supplier of uniforms can safely be purchased from a nondomestic supplier if a sufficient inventory is established must be produced domestically for national security reasons; when at war you must be able to quickly visually determine who is "on your side" must be produced domestically or by a reliable ally; uniforms are technologically sophisticated products which require tremendous expertise to produce

can safely be purchased from a nondomestic supplier if a sufficient inventory is established

As a result of moving from autarky to free trade: economic surplus increases and consumer surplus increases economic surplus increases and consumer surplus decreases economic surplus increases and domestic producer surplus increases economic surplus decreases and domestic producer surplus decreases economic surplus decreases and consumer surplus increases

economic surplus increases and consumer surplus increases

Goods and services produced domestically but sold to other countries are referred to as quotas imports inferior goods exports tariffs

exports (KNOW ALL DEFINITIONS)

Protectionism, in the form of tariffs and quotas, is said to be a "method of requiring consumers to indirectly subsidize producers." This is because tariffs and quotas: reduce economic surplus are legal constructs; their cost is inevitable generate tax revenue which is then used by the government to subsidize producers generate deadweight loss; this is redistributed to producers to enhance their competitiveness increase price; consumers pay more to domestic producers for the protected product

increase price; consumers pay more to domestic producers for the protected product

Increasing the U.S. sugar quota (i.e. allowing more imported sugar into the US) would: decrease the number of workers employed in foreign sugar production increase the number of workers employed in the US candy industry increase the number of workers employed in the US sugar industry increase the price U.S. consumers pay for sugar increase tax revenue

increase the number of workers employed in the US candy industry

The infant industry justification for restricting trade: requires that quotas be used to protect domestic industries is based on the observation that per unit costs are higher when output is lower helped to minimize the price that Brazilian consumers paid for autos revolves around protecting laborers from exploitation requires that tariffs be used to protect domestic industries

is based on the observation that per unit costs are higher when output is lower

When considering international trade, dumping: refers to selling an exported product for a price above its cost of production refers to selling an exported product for a price below its cost of production with the intent of driving competitors in the importing country out of business and then increasing price refers to the use of child labor in export factories refers to the substandard working conditions found in many countries that export products hurts consumers because they pay an artificially inflated price for the product

refers to selling an exported product for a price below its cost of production with the intent of driving competitors in the importing country out of business and then increasing price

A nation can benefit from reducing barriers to trade: only if its trading partners also reduce barriers to trade only if they are eliminating quotas; tariffs provide the government with tax revenue regardless of whether its trading partners reduce barriers to trade under no circumstances only if the industries which are affected are capital intensive industries

regardless of whether its trading partners reduce barriers to trade

Who is harmed when a nation moves from autarky to free trade?: the foreign customers of the firms that went out of business as a result of the change the foreign customers of the firms that now specialize the nation as a whole the owners of the firms that went out of business as a result of the change the domestic customers of the firms that went out of business as a result of the change

the owners of the firms that went out of business as a result of the change