Reference no: EM131173952
Match each anti-trade argument with its counter argument.
1. When we depend on imports to provide necessary products (food, oil etc.) we make ourselves vulnerable to the will of other countries. If they decided to stop selling to us then our economy or society could be critically hurt.
2. In order to develop new industries in an economy, they need to be protected from fierce international competition until they are mature.
3. Trade causes some industries to decline and people in those industries to lo9se their jobs. In order to protect those jobs, trade should be stopped.
A: When engaging in trade, the countries involved become interdependent, and therefore are less likely to allow themselves to fall into conflict and cut off trade
B: Once an industry is protected by tariffs or subsidies, it becomes politically difficult to remove those protections, and the protected industry can become an inefficient drag on the economy.
C: Trade causes the most efficient industries to grow, and others to shrink. Once this happens the economy will be more dynamic, but stopping this process we are settling for a less efficient, less dynamic economy.
Differences in the opportunity costs of production
: According to the HO theory, the basis for the movement of goods and services (international trade) across national boundaries is the differences in the opportunity costs of production (which translates into differences in the prices of goods and serv..
|
About the opportunity cost of holding money
: Which of the following is true about the opportunity cost of holding money? Economists have found that
|
What is real exchange rate expressed in terms of cars
: A car costs $30,000 in the US. The same car costs 12,000 pounds in Britain. The exchange rate is $1 = 0.5 pounds. 22.1. Refer to the scenario. What is the real exchange rate expressed in terms of cars?
|
Aggregate demand can be defined
: Aggregate demand can be defined as:
|
Each anti-trade argument with its counter argument
: When we depend on imports to provide necessary products (food, oil etc.) we make ourselves vulnerable to the will of other countries. If they decided to stop selling to us then our economy or society could be critically hurt. In order to develop new ..
|
Considering the two investment opportunities
: Kevin has $100,000 and is considering the following two investment opportunities. Investment A requires an initial investment of $100,000 and promises to return an annual amount of $23,740 for 5 years. Investment B requires an initial investment of $..
|
Straight-line-double declining-balance depreciation
: An equipment costs $100,000, has a useful life of 5 years and has zero salvage value at the end of its useful life. Determine the depreciation allowance for the first two years and book value at the end of year 1 and year 2 for the following methods...
|
The increase in government purchases on aggregate demand
: When comparing a $100 billion increase in government purchases to a $100 billion decrease in tax revenue, the effect of the increase in government purchases on aggregate demand is
|
Briefly describe the great depression
: Briefly describe the Great Depression. Explicitly explain why it is believed to have been an American led world recession. Be sure to highlight the important causes in your explanation.
|