Reference no: EM131432543
1. International trade allows a country to specialize in the manufacture and export of products that it can produce efficiently, and import products that can be produced more efficiently in other countries.
Some patterns of trade are fairly easy to explain-it is obvious why Saudi Arabia exports oil, the United States exports agricultural products, and Mexico exports labor-intensive goods. Yet others are not so obvious or easily explained, such as cars exported from Japan.
Respond to the following:
- Most countries create a list of "hostile" countries that require special permission before an exporter will be allowed to proceed. Choose the countries and products you would like to place on this list for your nation. Post the list along with the explanation for each product and country.
200 words to answer the two bullets in question 1.
2. Free trade with no government interference is certain to hurt some domestic industries that are not competitive globally. Workers in the U.S. textile industry, for example, may lose jobs to workers in lower wage economies. Yet consumers in the U.S. like to purchase inexpensive, quality goods.
Government policy can affect demand through product standards, influence rivalry through regulation and antitrust laws, and impact the availability of highly educated workers and advanced transportation infrastructure.
Respond to the following:
- What are the potential costs of adopting a free trade regime? What do you think governments should do to reduce these costs?
- Please discuss the cultural motives for restricting free trade, and explain why import quotas help trade restriction.
200 words to answer the two bullets in question 2.
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