1... If specialization and outsourcing can harm domestic workers, why do countries stillengage in trade?a) Domestic workers can move to a country with a greater need for their skills.b) Welfare programs can support unemployed workers.O) The gains from trade far outweigh the costs to workers, and the economybenefits overall.d) Shipping companies have a powerful lobby in Congress.O e) Most workers have little influence on politicians and are ignored.

A country specializes in the good which it can produce at a lower opportunity cost than the other…

If specialization and outsourcing can harm domestic workers, why do countries still engage in trade? a) Domestic workers can move to a country with a greater need for their skills. b) Welfare programs can support unemployed workers. The gains from trade far outweigh the costs to workers, and the economy benefits overall. d) Shipping companies have a powerful lobby in Congress. O e) Most workers have little influence on politicians and are ignored.

If specialization and outsourcing can harm domestic workers, why do countries still engage in trade? a) Domestic workers can move to a country with a greater need for their skills. b) Welfare programs can support unemployed workers. The gains from trade far outweigh the costs to workers, and the economy benefits overall. d) Shipping companies have a powerful lobby in Congress. O e) Most workers have little influence on politicians and are ignored.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter33: International Trade

Section: Chapter Questions

Problem 20CTQ: You just overheard your friend say the following: Poor countries like Malawi have no absolute...

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You just overheard your friend say the following: Poor countries like Malawi have no absolute advantages. They have poor soil, low investments in formal education and hence low-skill workers, no capital, and no natural resources to speak of. Because they have no advantage, they cannot benefit from trade. How would you respond?
International trade Why would a country opt for free trade when some workers remain unemployed in the import-competing sector? Given the real wage rate in Thailand is higher than that in Bangladesh, how would international trade affect real wages betweenthem under a perfectly mobile labor movement?
Suppose two countries, A and B, trade two goods, Good 1 and Good 2. Production of both goods requires capital (K) and labor (L) and production of one unit of Good 1 requires more capital relative to labor than production of one unit of Good 2. We also know that ΚΑ > KB, where upper bars denote the total amount of a factor in a country. LB LA State the Heckscher-Ohlin theorem. What does it predict about trade patterns between countries A and B once they open up for trade? ii. Using a production possibility frontier and an indifference curve, draw a diagram that shows no-trade and free-trade equilibrium in country A.
Many U.S. firms import products or parts from other countries indstead of producing them domestically. In fact, most iPhones are other smartphones are made not in the U.S. but in China. Many politicians, notably Presidents Trump and Biden, and commentators argue that the government should protect domestic jobs in this country by penalizing the practice of importing from other countries. How are Americans affected by this practice? Does this hurt Americans by international trade as they are consumers and ordinary resident in the U.S.?
Home has 1200 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 3, while in bananas production it is 2. There is now also another country, Foreign, with a labor force of 800. Foreign’s unit labor requirement in apple production is 5, while in bananas production it is 1. d) Describe the pattern of trade. Home country should produce? Foreign country should produce? Why? e) Show that how both Home and Foreign country gain from trade.
With free trade, why is wage (income) gap between American skilled and unskilled workers widened? Which of the following is LEAST appropriate for an answer? A. Because American companies producing very expensive products need to hire more skilled workers while American companies producing inexpensive products do not at least hire more of unskilled workers or even reducing the employment of the existing unskilled workers. B. Because American people are willing to buy inexpensive products imported from other developed countries having comparative advantage in producing those inexpensive products rather than inexpensive ones manufactured in the USA. C. Because American companies producing very expensive products need to produce more and more by hiring more American skilled workers as demand for American expensive products from developing countries increases. D. Because free trade allows the USA to focus on specializing in producing very expensive products…
Home has 1200 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 3, while in bananas production it is 2. There is now also another country, Foreign, with a labor force of 800. Foreign’s unit labor requirement in apple production is 5, while in bananas production it is 1. e) Show that how both Home and Foreign countries gain from trade.
The economic basis for trade is O none of these. O speculative attacks. O insourcing. O comparative advantage. O the race to the bottom.
Question 3 If specialization and outsourcing can harm domestic workers, why do countries still engage in trade? a) Welfare programs can support unemployed workers. b) Shipping companies have a powerful lobby in Congress. c) Domestic workers can move to a country with a greater need for their skills. d) Most workers have little influence on politicians and are ignored. e) The gains from trade far outweigh the costs to workers, and the economy benefits overallI.
If countries engaged in trade enjoy welfare gains, why is there often some opposition to free trade?
Consider the following data on two countries, A and B. A B Unskilled labor 72 million 540 million Skilled labor 60 million 300 million a. which country is skilled-labor abundant and why? b. which country is unskilled-labor abundant and why? c. now assume that product T is unskilled-labor intensive relative to product S, under free-trade equilibrium, which country will have a comparative advantage in the production of T?
Which of the following is NOT a trade cost? Othe hassle of working across language barriers O dealing with foreign laws O adapting to different ways of doing business the cost of producing a good