Long-term growth, international trade & globalization
Course:- Microeconomics
Length: Word Count: 564
Reference No.:- EM1333

Assignment Help
Assignment Help >> Microeconomics

Question:  Long-term Growth, International Trade & Globalization

a.       In terms of understanding the importance of trade to an economy, the most important consideration is the trade balance - deficit or surplus.
i. True or False? ii. Why?

b.      The US is the largest exporter in the world.  The US has run a persistent trade deficit (importing more than we export) for over two decades. e?

c.       A country can only have a comparative advantage in those products and services that it produces at the lowest absolute cost (for a given quality).
i. True or False? ii. Why?

d.      Comparative advantage is the ability of an individual, a firm, or a country to produce a good or service at a lower i._______________________ cost than competitors.
ii. Briefly Explain?

e.       In the "Gains from Trade" framework, the win-win proposition obviously means that everyone wins from international trade.
i. Yes or No? ii. Why or why not?

f.       i. Briefly explain and ii. quote how Charles Wheelan pulls together productivity, specialization, and trade as the "formula" for a country to create wealth.


This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade scenario and Charles Wheelan's quote are answered.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Microeconomics) Materials
What strategies and tactics will you employ? What economic model are you going to use? How will you evaluate your research? What does a search of the l
A movie you will never forget-a true "classic"--managerial economics ethical or not/ including banking- a historical perspective. It happened like you see it. How does this c
Discuss whether it is possible for a data set to consist only of anomalous objects, or if it is an abuse of the terminology? Cite the sources you use to make your response.
Ability to apply economic principles to a business decision - Price Elasticity of Demand facing you in your scenario, including actual calculation of it using the midpoint for
A sample of size 4 is developed from the distribution for R. The values in $ million are: 2.6; 3.0; 3.2; 3.0. If the interest rate is 12% per year, use the sample to calcula
Now suppose that all firms are revenue maximizers, taking prices as given, subject to a zero-profit constraint. Why is it difficult to contemplate an equilibrium in a case
The federal Insurance Contributions Act  tax is a payroll tax that finances Social Security and MEdicare. By law, employees each contribute 7.65 percent of the workers wages t
Suppose you are using risk-benefit analysis to evaluate a policy aimed at limiting the use of a pesticide applied to grain crops. Describe the risks and benefits that would