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
Provide an example of an environmental tax or marketable permit instrument that has been used in Canada. Evaluate the instrument in terms of its efficiency (or cost-effectiven
Your firm currently uses 69 workers to produce 300 units of output per day. The daily wage (per worker) is $100, and the price of the firm's output is $30. The cost of other
Go to the Web site of the Federal Reserve Bank of St. Louis (FRED) (research. stlouisfed.org/fred2/) and download the most recent value and the value from the same month one
How may you apply what you learned about supply and demand from the simulation to your workplace or your understanding of a real-world product with which you are familiar?
How would the UAW benefit for increased demand for GM and Chrysler vehicles - Each year Forbes magazine lists the multimillion-dollar earnings of top entertainers and professi
Barney's Liquids and Aunt Bee's Lemonade plan to expand their international partnership for the marketing and distribution of ready-to-drink tea products by adding 12 countrie
If some auction participants for crude oil field leases have estimates that the oil in the ground is worth $1.2 million, $1.3 million, or $1.5 million with ce
Examine the basis for the trends in consumption patterns, as discussed in any article and explain what has occurred to change the demand for, or the supply of, the products, a