Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

provide your references The gains from specialization and trade are based on comparative advantages, which reflect the relative opportunity costs of production. When countries specialize

provide your references The gains from specialization and trade are based on comparative advantages, which reflect the relative opportunity costs of production. When countries specialize in producing goods and services for which they have comparative advantages, total production in the global economy rises. Trade advocates argue that this increase in the size of the economic pie can be used to make all trading countries better off through international trade. Economists also use the principle of comparative advantage to advocate free trade among countries as a better policy. Based on the above summary and the detailed descriptions of the international trade issues discuss the following questions. 1.Does free trade contribute to the improvement of economic well-being? How does trade stimulate long-term economic growth? Explain. 2. Who gains and losses from free trade among countries, and how do the gains compare to the losses? Explain using examples. 3. Do you think the U.S. export and import of goods and services are based on the principle of a comparative advantage of trade? Explain. 4. Why do countries impose trade restrictions on goods and services they import from other countries? What are the pros and cons of trade protectionism? 5. What is the impact of free trade on domestic job creation policy? Elaborate with examples

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

Development Economics In The Twenty-First Century

Authors: Claudia Sunna, Davide Gualerzi

1st Edition

1317219961, 9781317219965

More Books

Students also viewed these Economics questions

Question

The relevance of the information to the interpreter

Answered: 1 week ago