Int 6
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This document summarizes key points from a lecture on the global economy and international trade. It discusses how trade impacts different groups, such as how free trade can benefit some producers and consumers but hurt others. It also addresses arguments against free trade, explaining that while exceptions exist, trade generally creates jobs and increases wages by allowing specialization and promoting productivity. Overall, the document argues that trade benefits consumers and that producers only have value if they satisfy consumer needs efficiently.
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Int 6
- 2. Lecture 6 - Global Economy ECON 360 International Economics
- 3. 1. You have two employees.You pay one $25 an hour and the other $10 an hour. Which one is more valuable?
- 4. Don Boudreaux George Mason University Douglas Irwin Dartmouth College
- 6. Producers Consumers Canadian Milk Producers Happy Canadian Non-Milk Producers Unhappy American Milk Producers Unhappy Canadian Milk Consumers Unhappy American Milk Consumers Happy American Lumber Producers Happy American Non-Lumber Producers Unhappy Canadian Lumber Producers Unhappy American Lumber Consumers Unhappy Canadian Lumber Consumers Happy Tariff Who benefits from retaliation? Country
- 7. Compete or Lobby Protecting one group from competition
- 8. Do exports increase average wages? Protection damages efficient industries
- 11. Total Compensation Wages and Benefits Benefit growth Taxes
- 16. Lots of Jobs Jobs are a cost not a benefit
- 17. We don’t want jobs We want income
- 18. Conclusion Trade creates jobs and increases wages
- 20. Possible vs. Plausible Almost everything possible never happens
- 22. Dumping Underpricing exports What’s wrong with low prices?
- 23. Dumping Unfair to producers Monopoly Predatory Pricing
- 24. Unfair to Producers Do consumers exist to satisfy producers or do producers exist to satisfy consumers?
- 25. Producers are valuable only if the satisfy consumers Otherwise they are wasting resources
- 26. Markets are where value is discovered Learning and modifying
- 27. Markets are information systems Profits and losses direct resources