Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1.7. Your analysis above proves that the U.S. gains from trade in the Ricardian model as studied here. But in the real world, there are

image text in transcribed
1.7. Your analysis above proves that the U.S. gains from trade in the Ricardian model as studied here. But in the real world, there are often protests against opening to trade. This suggests that something must be missing or wrong in the assumptions of the model, so that some groups of people feel that they lose from opening to trade. Explain in particular why U.S. workers employed in the phone sector gain in the Ricardian model, but that this conclusion might be less clear in a more realistic model of opening to trade. Hint: what do the workers in the phone sector do after the two countries open to trade? What are the costs and benefits of doing this in the model? In the 'real world'?(3 points)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Reform Of The International Monetary System An Asian Perspective

Authors: Masahiro Kawai, Mario B Lamberte, Peter J Morgan

1st Edition

4431550348, 9784431550341

More Books

Students also viewed these Economics questions

Question

What are the purposes of promotion ?

Answered: 1 week ago