The document provides an overview of key facts about international trade for the United States including that the U.S. had a $517 billion trade deficit in goods but a $138 billion surplus in services in 2009. It also discusses the economic basis for trade based on comparative advantage and how nations can gain from specializing in producing goods with a lower opportunity cost and trading. Finally, it covers different policies related to international trade such as tariffs, quotas, and multilateral trade agreements like the WTO, NAFTA, and EU.
This document summarizes the development of the railroad industry in the United States between 1865-1900. It describes how the railroad network expanded dramatically after the Civil War, driven by government subsidies in the form of large land grants. The completion of the first transcontinental railroad in 1869 connected the country by rail and spurred major economic growth and western expansion. However, the railroad industry was plagued by corruption and monopolistic practices. This led to the first attempts at government regulation through acts like the Interstate Commerce Act of 1887. The growth of railroads was central to the massive industrialization of the U.S. economy during this period.
The document summarizes the economic principles of international trade, including comparative advantage and gains from trade. It uses an example of trade between the US and Mexico in two goods, vegetables and beef, to illustrate how specializing production based on comparative advantage allows both countries to consume more than if they were self-sufficient. Specifically, specializing in their comparative advantages of beef for the US and vegetables for Mexico and trading allows both countries to increase their consumption of both goods.
This document discusses international trade and trade barriers. It begins by explaining the concepts of absolute and comparative advantage, and how they can be used to understand why countries trade. Countries have a comparative advantage in goods they can produce at a lower opportunity cost. Trade allows countries to specialize in what they are relatively better at producing. The document then discusses different types of trade barriers like tariffs, quotas, and subsidies that can impact trade flows. It concludes by explaining international agreements and organizations like the WTO that aim to promote free trade while allowing countries to resolve trade disputes.
The document discusses international trade concepts including comparative advantage and trade barriers. It explains that countries trade based on comparative advantage, where each country specializes in producing goods with a lower opportunity cost compared to other countries. This benefits both trading partners through increased consumption possibilities. However, countries sometimes erect trade barriers like tariffs and quotas that decrease free trade and reduce overall welfare. International organizations like the WTO aim to facilitate trade and resolve disputes arising from barriers.
This document provides an overview of international trade concepts including:
- Comparative advantage allows nations to specialize and gain from trade by producing goods where they have a lower opportunity cost.
- Tariffs and quotas create inefficiencies by raising domestic prices and reducing trade quantities from free trade levels.
- Arguments for protectionism include infant industries needing support and unfair foreign competition, but protection reduces overall economic welfare.
This document provides an overview of international trade concepts including:
- Comparative advantage allows countries to benefit from trade even if one country has an absolute advantage in all goods, by producing goods where they have a lower opportunity cost.
- Countries develop comparative advantages based on differences in technology, climate, and factor endowments like land, labor, and capital.
- While trade creates overall gains, it also creates winners and losers as industries within countries are affected.
- Trade barriers like tariffs, quotas, and subsidies distort trade but may protect certain domestic industries.
- International agreements through the WTO and regional trade blocks aim to reduce barriers and facilitate trade, but they also face criticisms.
This document discusses international trade and the effects of free trade versus trade restrictions. It begins by examining the determinants of trade, explaining that a country will export goods where it has a comparative advantage over other countries as indicated by a domestic price below the world price. For goods where a country lacks comparative advantage and the domestic price is above world levels, the country will import. Free trade increases overall welfare by allowing for gains from trade, though some domestic producers may lose. The document then analyzes the effects of trade restrictions like tariffs and quotas, finding they reduce imports, benefit domestic producers but harm consumers, and create deadweight losses that lower total welfare.
The document discusses international trade and key concepts related to trade between countries. It covers comparative advantage and how specialization allows countries to gain from trade. Countries have different opportunity costs of production and should specialize in what they have a comparative advantage in producing. When countries trade based on their comparative advantages, both countries can consume beyond their production possibilities frontiers and benefit from increased consumption possibilities. The document also discusses factors that influence international trade patterns such as trade agreements and barriers.
This document summarizes the development of the railroad industry in the United States between 1865-1900. It describes how the railroad network expanded dramatically after the Civil War, driven by government subsidies in the form of large land grants. The completion of the first transcontinental railroad in 1869 connected the country by rail and spurred major economic growth and western expansion. However, the railroad industry was plagued by corruption and monopolistic practices. This led to the first attempts at government regulation through acts like the Interstate Commerce Act of 1887. The growth of railroads was central to the massive industrialization of the U.S. economy during this period.
The document summarizes the economic principles of international trade, including comparative advantage and gains from trade. It uses an example of trade between the US and Mexico in two goods, vegetables and beef, to illustrate how specializing production based on comparative advantage allows both countries to consume more than if they were self-sufficient. Specifically, specializing in their comparative advantages of beef for the US and vegetables for Mexico and trading allows both countries to increase their consumption of both goods.
This document discusses international trade and trade barriers. It begins by explaining the concepts of absolute and comparative advantage, and how they can be used to understand why countries trade. Countries have a comparative advantage in goods they can produce at a lower opportunity cost. Trade allows countries to specialize in what they are relatively better at producing. The document then discusses different types of trade barriers like tariffs, quotas, and subsidies that can impact trade flows. It concludes by explaining international agreements and organizations like the WTO that aim to promote free trade while allowing countries to resolve trade disputes.
The document discusses international trade concepts including comparative advantage and trade barriers. It explains that countries trade based on comparative advantage, where each country specializes in producing goods with a lower opportunity cost compared to other countries. This benefits both trading partners through increased consumption possibilities. However, countries sometimes erect trade barriers like tariffs and quotas that decrease free trade and reduce overall welfare. International organizations like the WTO aim to facilitate trade and resolve disputes arising from barriers.
This document provides an overview of international trade concepts including:
- Comparative advantage allows nations to specialize and gain from trade by producing goods where they have a lower opportunity cost.
- Tariffs and quotas create inefficiencies by raising domestic prices and reducing trade quantities from free trade levels.
- Arguments for protectionism include infant industries needing support and unfair foreign competition, but protection reduces overall economic welfare.
This document provides an overview of international trade concepts including:
- Comparative advantage allows countries to benefit from trade even if one country has an absolute advantage in all goods, by producing goods where they have a lower opportunity cost.
- Countries develop comparative advantages based on differences in technology, climate, and factor endowments like land, labor, and capital.
- While trade creates overall gains, it also creates winners and losers as industries within countries are affected.
- Trade barriers like tariffs, quotas, and subsidies distort trade but may protect certain domestic industries.
- International agreements through the WTO and regional trade blocks aim to reduce barriers and facilitate trade, but they also face criticisms.
This document discusses international trade and the effects of free trade versus trade restrictions. It begins by examining the determinants of trade, explaining that a country will export goods where it has a comparative advantage over other countries as indicated by a domestic price below the world price. For goods where a country lacks comparative advantage and the domestic price is above world levels, the country will import. Free trade increases overall welfare by allowing for gains from trade, though some domestic producers may lose. The document then analyzes the effects of trade restrictions like tariffs and quotas, finding they reduce imports, benefit domestic producers but harm consumers, and create deadweight losses that lower total welfare.
The document discusses international trade and key concepts related to trade between countries. It covers comparative advantage and how specialization allows countries to gain from trade. Countries have different opportunity costs of production and should specialize in what they have a comparative advantage in producing. When countries trade based on their comparative advantages, both countries can consume beyond their production possibilities frontiers and benefit from increased consumption possibilities. The document also discusses factors that influence international trade patterns such as trade agreements and barriers.
This document discusses key concepts in international trade including:
- Trade deficits and surpluses occur when the value of imports is greater than or less than exports respectively.
- Countries trade for comparative advantages in production due to uneven distributions of resources and technologies.
- Absolute and comparative advantage theories explain why trade benefits countries.
- Trade barriers like tariffs and quotas can restrict trade for protectionist or revenue purposes.
- The World Trade Organization establishes and enforces rules for international trade.
The document discusses international trade and the factors that determine whether a country imports or exports a good. It examines the effects of free trade, tariffs, and import quotas. The key points are:
- A country will export goods for which it has a comparative advantage and import goods where other countries have a comparative advantage.
- Free trade benefits consumers in importing countries and producers in exporting countries while harming producers in importing countries and consumers in exporting countries.
- Tariffs and import quotas reduce trade and welfare by creating deadweight losses. They benefit domestic producers at the expense of domestic consumers.
Free trade allows countries to specialize in goods where they have a comparative advantage. If a country's domestic price is below the world price, it will export that good. If the domestic price is above the world price, it will import that good. Free trade benefits consumers in importing countries and producers in exporting countries, while harming producers in importing countries and consumers in exporting countries. However, the overall gains from trade exceed the losses. Tariffs and import quotas reduce these gains by creating deadweight losses and moving prices away from the free trade equilibrium. While restrictions are sometimes advocated for reasons like protecting jobs, most economists argue that free trade generally provides net benefits.
The document discusses various concepts related to markets and market equilibrium including:
- Changes in supply and demand can occur due to factors like changes in tastes, income levels, prices of related goods, technology, resource prices, taxes, and expectations of producers and consumers.
- These changes can lead to increases or decreases in price and quantity depending on whether demand or supply increases or decreases.
- Supply may be upward sloping due to increasing costs of production, but can also be flat if costs are constant.
- Government policies like price floors and ceilings can be used to address issues like inequality but may also create inefficiencies like surpluses or shortages.
- Market failures like public goods, externalities,
International trade occurs between countries or across political borders. It has certain features like immobility of factors between countries, heterogeneous markets among nations, and different currencies.
Theories of absolute advantage and comparative advantage explain why countries benefit from specializing production and trading. Absolute advantage refers to greater efficiency, while comparative advantage means lower relative production costs. Countries export goods that intensively use their abundant factors and import goods that intensively use scarce factors, according to the Hecksher-Ohlin model of international trade.
Exchange rate,Trade Deficit & Balance of paymentHassam Mirza
This document discusses Pakistan's exchange rates, balance of payments, and trade deficit. It provides historical context on Pakistan's trade policies and external economic transactions from the 1950s onwards. Some key causes of Pakistan's trade deficits mentioned include a narrow export base, high imports, inflation, and rising oil prices. Solutions proposed to address the trade imbalance include developing agriculture and labor-intensive industries, reducing export duties, improving product quality, and decreasing consumption of imported goods.
The document discusses international trade patterns of the United States. It notes that the U.S. imports over $2.2 trillion worth of goods and services annually while exporting $1 trillion in goods and $431 billion in services. This results in a large trade deficit, with the U.S. importing more than it exports. The document also discusses theories of comparative advantage and how free trade allows nations to specialize in industries where they have lower costs, increasing overall global production. However, import-competing industries often lobby for protectionist policies like tariffs and quotas that restrict trade.
This document summarizes Learning Unit 3 which discusses gains from trade and empirical evidence. It covers objectives like explaining gains from trade, determining equilibrium relative prices, describing gains from specialization and trade diagrams, examining evidence of comparative advantage, and identifying revealed comparative advantage. An example is provided to illustrate how specialization and trade allows two countries to produce and consume more goods compared to self-sufficiency. Empirical studies on trade patterns between countries generally support the theory of comparative advantage.
This document summarizes Learning Unit 3 which discusses gains from trade and empirical evidence. It explains how specialization and trade allow countries to produce more total output and increase consumption. Through an example, it shows how two countries can each produce the good they have a comparative advantage in and trade to gain consumption of both goods. It also discusses equilibrium relative prices under trade, comparative versus absolute advantage, empirical evidence that countries export goods they are relatively more productive in, and how revealed comparative advantage is measured.
The document discusses the potential impact of changes in U.S. trade policy on the industrial market. It notes that proposals to more strictly enforce existing trade treaties or renegotiate agreements like NAFTA could lead to higher prices, less free movement of labor, and slower global growth. Canada, Mexico, and China are important trade partners, and a "trade war" with Mexico and China would negatively impact supply chains. While the U.S. aims to reduce its trade deficits, sweeping policies that risk closing markets to U.S. exports are unlikely given significant economic ties with key partners. The industrial market would be affected by changes in trade volumes and costs of goods movement between countries.
1. The document discusses concepts related to international trade such as comparative advantage, production possibility frontiers, and costs and benefits of free trade versus protectionism.
2. It provides examples to illustrate the principle of comparative advantage and shows that even if one country is more productive in all goods, there can still be gains from trade based on relative opportunity costs of production.
3. The document notes that while free trade provides overall benefits, the costs may be borne unevenly within countries, leading some producers to support protectionist policies that restrict trade.
International trade involves the exchange of goods and services between people of different nations. It provides several economic benefits like optimal resource allocation, division of labor, and increased incomes and standards of living. A country's terms of trade represent the value of its exports relative to imports. Factors like economic growth, technology, and tariffs can impact terms of trade. While India's GDP is growing, its terms of trade have declined in recent years partly due to currency devaluation and slower export growth relative to growing services. The World Trade Organization established global trade rules and regulations and helps ensure free and fair trade. However, rising protectionism is a challenge as seen in the ongoing US-China trade war.
This document discusses various theories of international trade and investment. It covers theories such as mercantilism, absolute advantage, comparative advantage, factor endowments, and newer theories like product life cycles and clusters. It also discusses arguments for and types of trade restrictions, including tariffs and nontariff barriers. Finally, it outlines several theories of foreign direct investment, such as monopolistic advantages and internalization to explain why firms invest overseas.
Trade occurs when parties specialize in what they can produce at the lowest cost and exchange goods, allowing both parties to benefit. Countries have a comparative advantage in producing goods that rely more heavily on their abundant resources. While trade increases overall production and consumption, certain groups within a country may object if domestic prices fall below world prices due to imports. Governments sometimes use tariffs, quotas, export subsidies or product standards as barriers to trade to protect domestic producers, but this comes at the cost of higher prices for consumers.
1. Aggregate demand is the total demand for final goods and services in an economy over a given period of time. It is made up of consumption, investment, government spending, exports minus imports.
2. Changes in aggregate demand are key to understanding economic fluctuations like recessions and recoveries. A rise in aggregate demand leads to economic expansion while a fall causes contraction.
3. Shifts in aggregate demand are caused by changes in factors like fiscal policy, monetary policy, business and consumer confidence, and external economic conditions.
Trade barriers in europe option 2 brain wrinklemarypardee
This document discusses various types of trade barriers - tariffs, quotas, and embargoes - and their effects. It explains that tariffs are taxes on imported goods that raise their prices, making domestic goods relatively cheaper. Quotas limit the quantity of goods that can be imported, also raising prices. Embargoes ban trade with other countries entirely for political reasons, intending to harm their economies. While trade barriers protect domestic industries and jobs, they also increase costs to consumers and limit global trade and competition.
This document discusses international trade and the effects of free trade, tariffs, and import quotas. It examines why countries import or export goods based on comparative advantage. Free trade benefits countries through increased economic welfare as gains to consumers exceed losses to producers. Tariffs and quotas reduce imports and welfare by creating deadweight losses. While they may benefit domestic producers, they harm domestic consumers and the overall economy.
This document discusses international trade and the effects of free trade, tariffs, and import quotas. It explains that countries will export goods where they have a comparative advantage over other countries as determined by domestic and world prices. Free trade benefits countries through increased economic welfare as gains to consumers exceed losses to producers. Tariffs and import quotas reduce imports and welfare by creating deadweight losses. While they may protect domestic producers, they ultimately decrease total welfare for the country.
This document discusses various theories of international trade, including mercantilism, absolute advantage, comparative advantage, factor proportions theory, product life cycle theory, and theories of national competitive advantage. It also outlines common instruments of trade policy such as tariffs, subsidies, quotas, and anti-dumping policies. Finally, it discusses political and economic arguments that governments use to intervene in international trade such as protecting infant industries and pursuing strategic trade policy.
1. The document discusses concepts related to international trade including absolute advantage, comparative advantage, specialization of labor, and barriers to free trade such as tariffs and quotas.
2. It uses examples of Honduras and Cuba to illustrate comparative advantage and how trade benefits both countries.
3. The document also lists some benefits and drawbacks of free trade and discusses international trade organizations and agreements such as NAFTA, the EU, and WTO.
How to Build a Module in Odoo 17 Using the Scaffold MethodCeline George
Odoo provides an option for creating a module by using a single line command. By using this command the user can make a whole structure of a module. It is very easy for a beginner to make a module. There is no need to make each file manually. This slide will show how to create a module using the scaffold method.
This document discusses key concepts in international trade including:
- Trade deficits and surpluses occur when the value of imports is greater than or less than exports respectively.
- Countries trade for comparative advantages in production due to uneven distributions of resources and technologies.
- Absolute and comparative advantage theories explain why trade benefits countries.
- Trade barriers like tariffs and quotas can restrict trade for protectionist or revenue purposes.
- The World Trade Organization establishes and enforces rules for international trade.
The document discusses international trade and the factors that determine whether a country imports or exports a good. It examines the effects of free trade, tariffs, and import quotas. The key points are:
- A country will export goods for which it has a comparative advantage and import goods where other countries have a comparative advantage.
- Free trade benefits consumers in importing countries and producers in exporting countries while harming producers in importing countries and consumers in exporting countries.
- Tariffs and import quotas reduce trade and welfare by creating deadweight losses. They benefit domestic producers at the expense of domestic consumers.
Free trade allows countries to specialize in goods where they have a comparative advantage. If a country's domestic price is below the world price, it will export that good. If the domestic price is above the world price, it will import that good. Free trade benefits consumers in importing countries and producers in exporting countries, while harming producers in importing countries and consumers in exporting countries. However, the overall gains from trade exceed the losses. Tariffs and import quotas reduce these gains by creating deadweight losses and moving prices away from the free trade equilibrium. While restrictions are sometimes advocated for reasons like protecting jobs, most economists argue that free trade generally provides net benefits.
The document discusses various concepts related to markets and market equilibrium including:
- Changes in supply and demand can occur due to factors like changes in tastes, income levels, prices of related goods, technology, resource prices, taxes, and expectations of producers and consumers.
- These changes can lead to increases or decreases in price and quantity depending on whether demand or supply increases or decreases.
- Supply may be upward sloping due to increasing costs of production, but can also be flat if costs are constant.
- Government policies like price floors and ceilings can be used to address issues like inequality but may also create inefficiencies like surpluses or shortages.
- Market failures like public goods, externalities,
International trade occurs between countries or across political borders. It has certain features like immobility of factors between countries, heterogeneous markets among nations, and different currencies.
Theories of absolute advantage and comparative advantage explain why countries benefit from specializing production and trading. Absolute advantage refers to greater efficiency, while comparative advantage means lower relative production costs. Countries export goods that intensively use their abundant factors and import goods that intensively use scarce factors, according to the Hecksher-Ohlin model of international trade.
Exchange rate,Trade Deficit & Balance of paymentHassam Mirza
This document discusses Pakistan's exchange rates, balance of payments, and trade deficit. It provides historical context on Pakistan's trade policies and external economic transactions from the 1950s onwards. Some key causes of Pakistan's trade deficits mentioned include a narrow export base, high imports, inflation, and rising oil prices. Solutions proposed to address the trade imbalance include developing agriculture and labor-intensive industries, reducing export duties, improving product quality, and decreasing consumption of imported goods.
The document discusses international trade patterns of the United States. It notes that the U.S. imports over $2.2 trillion worth of goods and services annually while exporting $1 trillion in goods and $431 billion in services. This results in a large trade deficit, with the U.S. importing more than it exports. The document also discusses theories of comparative advantage and how free trade allows nations to specialize in industries where they have lower costs, increasing overall global production. However, import-competing industries often lobby for protectionist policies like tariffs and quotas that restrict trade.
This document summarizes Learning Unit 3 which discusses gains from trade and empirical evidence. It covers objectives like explaining gains from trade, determining equilibrium relative prices, describing gains from specialization and trade diagrams, examining evidence of comparative advantage, and identifying revealed comparative advantage. An example is provided to illustrate how specialization and trade allows two countries to produce and consume more goods compared to self-sufficiency. Empirical studies on trade patterns between countries generally support the theory of comparative advantage.
This document summarizes Learning Unit 3 which discusses gains from trade and empirical evidence. It explains how specialization and trade allow countries to produce more total output and increase consumption. Through an example, it shows how two countries can each produce the good they have a comparative advantage in and trade to gain consumption of both goods. It also discusses equilibrium relative prices under trade, comparative versus absolute advantage, empirical evidence that countries export goods they are relatively more productive in, and how revealed comparative advantage is measured.
The document discusses the potential impact of changes in U.S. trade policy on the industrial market. It notes that proposals to more strictly enforce existing trade treaties or renegotiate agreements like NAFTA could lead to higher prices, less free movement of labor, and slower global growth. Canada, Mexico, and China are important trade partners, and a "trade war" with Mexico and China would negatively impact supply chains. While the U.S. aims to reduce its trade deficits, sweeping policies that risk closing markets to U.S. exports are unlikely given significant economic ties with key partners. The industrial market would be affected by changes in trade volumes and costs of goods movement between countries.
1. The document discusses concepts related to international trade such as comparative advantage, production possibility frontiers, and costs and benefits of free trade versus protectionism.
2. It provides examples to illustrate the principle of comparative advantage and shows that even if one country is more productive in all goods, there can still be gains from trade based on relative opportunity costs of production.
3. The document notes that while free trade provides overall benefits, the costs may be borne unevenly within countries, leading some producers to support protectionist policies that restrict trade.
International trade involves the exchange of goods and services between people of different nations. It provides several economic benefits like optimal resource allocation, division of labor, and increased incomes and standards of living. A country's terms of trade represent the value of its exports relative to imports. Factors like economic growth, technology, and tariffs can impact terms of trade. While India's GDP is growing, its terms of trade have declined in recent years partly due to currency devaluation and slower export growth relative to growing services. The World Trade Organization established global trade rules and regulations and helps ensure free and fair trade. However, rising protectionism is a challenge as seen in the ongoing US-China trade war.
This document discusses various theories of international trade and investment. It covers theories such as mercantilism, absolute advantage, comparative advantage, factor endowments, and newer theories like product life cycles and clusters. It also discusses arguments for and types of trade restrictions, including tariffs and nontariff barriers. Finally, it outlines several theories of foreign direct investment, such as monopolistic advantages and internalization to explain why firms invest overseas.
Trade occurs when parties specialize in what they can produce at the lowest cost and exchange goods, allowing both parties to benefit. Countries have a comparative advantage in producing goods that rely more heavily on their abundant resources. While trade increases overall production and consumption, certain groups within a country may object if domestic prices fall below world prices due to imports. Governments sometimes use tariffs, quotas, export subsidies or product standards as barriers to trade to protect domestic producers, but this comes at the cost of higher prices for consumers.
1. Aggregate demand is the total demand for final goods and services in an economy over a given period of time. It is made up of consumption, investment, government spending, exports minus imports.
2. Changes in aggregate demand are key to understanding economic fluctuations like recessions and recoveries. A rise in aggregate demand leads to economic expansion while a fall causes contraction.
3. Shifts in aggregate demand are caused by changes in factors like fiscal policy, monetary policy, business and consumer confidence, and external economic conditions.
Trade barriers in europe option 2 brain wrinklemarypardee
This document discusses various types of trade barriers - tariffs, quotas, and embargoes - and their effects. It explains that tariffs are taxes on imported goods that raise their prices, making domestic goods relatively cheaper. Quotas limit the quantity of goods that can be imported, also raising prices. Embargoes ban trade with other countries entirely for political reasons, intending to harm their economies. While trade barriers protect domestic industries and jobs, they also increase costs to consumers and limit global trade and competition.
This document discusses international trade and the effects of free trade, tariffs, and import quotas. It examines why countries import or export goods based on comparative advantage. Free trade benefits countries through increased economic welfare as gains to consumers exceed losses to producers. Tariffs and quotas reduce imports and welfare by creating deadweight losses. While they may benefit domestic producers, they harm domestic consumers and the overall economy.
This document discusses international trade and the effects of free trade, tariffs, and import quotas. It explains that countries will export goods where they have a comparative advantage over other countries as determined by domestic and world prices. Free trade benefits countries through increased economic welfare as gains to consumers exceed losses to producers. Tariffs and import quotas reduce imports and welfare by creating deadweight losses. While they may protect domestic producers, they ultimately decrease total welfare for the country.
This document discusses various theories of international trade, including mercantilism, absolute advantage, comparative advantage, factor proportions theory, product life cycle theory, and theories of national competitive advantage. It also outlines common instruments of trade policy such as tariffs, subsidies, quotas, and anti-dumping policies. Finally, it discusses political and economic arguments that governments use to intervene in international trade such as protecting infant industries and pursuing strategic trade policy.
1. The document discusses concepts related to international trade including absolute advantage, comparative advantage, specialization of labor, and barriers to free trade such as tariffs and quotas.
2. It uses examples of Honduras and Cuba to illustrate comparative advantage and how trade benefits both countries.
3. The document also lists some benefits and drawbacks of free trade and discusses international trade organizations and agreements such as NAFTA, the EU, and WTO.
How to Build a Module in Odoo 17 Using the Scaffold MethodCeline George
Odoo provides an option for creating a module by using a single line command. By using this command the user can make a whole structure of a module. It is very easy for a beginner to make a module. There is no need to make each file manually. This slide will show how to create a module using the scaffold method.
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
বাংলাদেশের অর্থনৈতিক সমীক্ষা ২০২৪ [Bangladesh Economic Review 2024 Bangla.pdf] কম্পিউটার , ট্যাব ও স্মার্ট ফোন ভার্সন সহ সম্পূর্ণ বাংলা ই-বুক বা pdf বই " সুচিপত্র ...বুকমার্ক মেনু 🔖 ও হাইপার লিংক মেনু 📝👆 যুক্ত ..
আমাদের সবার জন্য খুব খুব গুরুত্বপূর্ণ একটি বই ..বিসিএস, ব্যাংক, ইউনিভার্সিটি ভর্তি ও যে কোন প্রতিযোগিতা মূলক পরীক্ষার জন্য এর খুব ইম্পরট্যান্ট একটি বিষয় ...তাছাড়া বাংলাদেশের সাম্প্রতিক যে কোন ডাটা বা তথ্য এই বইতে পাবেন ...
তাই একজন নাগরিক হিসাবে এই তথ্য গুলো আপনার জানা প্রয়োজন ...।
বিসিএস ও ব্যাংক এর লিখিত পরীক্ষা ...+এছাড়া মাধ্যমিক ও উচ্চমাধ্যমিকের স্টুডেন্টদের জন্য অনেক কাজে আসবে ...
Assessment and Planning in Educational technology.pptxKavitha Krishnan
In an education system, it is understood that assessment is only for the students, but on the other hand, the Assessment of teachers is also an important aspect of the education system that ensures teachers are providing high-quality instruction to students. The assessment process can be used to provide feedback and support for professional development, to inform decisions about teacher retention or promotion, or to evaluate teacher effectiveness for accountability purposes.
How to Fix the Import Error in the Odoo 17Celine George
An import error occurs when a program fails to import a module or library, disrupting its execution. In languages like Python, this issue arises when the specified module cannot be found or accessed, hindering the program's functionality. Resolving import errors is crucial for maintaining smooth software operation and uninterrupted development processes.
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
हिंदी वर्णमाला पीपीटी, hindi alphabet PPT presentation, hindi varnamala PPT, Hindi Varnamala pdf, हिंदी स्वर, हिंदी व्यंजन, sikhiye hindi varnmala, dr. mulla adam ali, hindi language and literature, hindi alphabet with drawing, hindi alphabet pdf, hindi varnamala for childrens, hindi language, hindi varnamala practice for kids, https://www.drmullaadamali.com
2. Some Key Trade Facts
• U.S. trade deficit in goods
• $517 billion in 2009
• U.S. trade surplus in services
• $138 billion in 2009
• Canada largest U.S. trade partner
• Trade deficit with China
• $220 billion in 2009
• Exports are 13% U.S. output
• Dependence on oil
LO1
3. Some Key Trade Facts
• Principal U.S. exports include:
• Chemicals
• Agricultural products
• Consumer durables
• Semiconductors
• Aircraft
• U.S. provides about 8.5% of world’s
exports
LO1
4. Some Key Trade Facts
• Principal U.S. imports include:
• Petroleum
• Automobiles
• Metals
• Household appliances
• Computers
LO1
7. Economic Basis for Trade
• Nations have different resource
endowments
• Labor-intensive goods
• Land-intensive goods
• Capital-intensive goods
LO2
8. • Assumptions
• Two nations
• Same size labor force
• Constant costs in each country
• Different costs between countries
• U.S. absolute advantage in both
• Opportunity cost ratio
• Slope of the curve
• Vegetables sacrificed per ton of beef
LO2
Comparative Advantage
10. Comparative Advantage
• Self-sufficiency output mix
• Specialization and trade
• Produce the good with the lowest
domestic opportunity cost
• Opportunity cost of 1 ton of beef:
• 1 pound of vegetables in U.S.
• 2 pounds of vegetables in Mexico
LO2
12. Comparative Advantage
• Terms of trade
• U.S. 1V = 1B
• U.S. will sell 1B for more than 1V
• Mexico 2V = 1B
• Mexico will pay less than 2V for 1B
• Settle between the two
• Depends on supply/demand factors
• Assume 1B = 1.5V
LO2
13. Comparative Advantage
• Gains from trade
• Trading possibilities line
• Slope equals terms of trade
• Improved options
• Complete specialization
• More of both goods
• More efficient resource allocation
LO2
14. Gains from Trade
(a) United States (b) Mexico
Vegetables (Tons)
45
40
35
30
25
20
15
10
5
4
0
Z
5 10 15 20
Beef (Tons)
Vegetables (Tons)
45
40
35
30
25
20
15
10
5
0
A
A’
V’
5 10 15 20 25 30
Beef (Tons)
12
18 8
Z’
V
W
v
b b’
Trading
Possibilities Line
Trading
Possibilities Line
B
LO2
15. Comparative Advantage
• Trade with increasing costs
• Concave production curve
• Resources not perfectly
substitutable
• Incomplete specialization
• Case for free trade
• Promote efficiency
• Promote competition
LO2
16. Supply and Demand Analysis
• World price
• Domestic price with no trade
• World price > domestic price
• Export surplus
• Export supply curve
• World price < domestic price
• Import shortage
• Import supply curve
LO3
17. Supply and Demand Analysis
1.50
1.25
1.00
.75
.50
0
50 100
Quantity of Aluminum
(Millions of Pounds)
Price (Per Pound; U.S. Dollars
Price (Per Pound; U.S. Dollars
1.50
1.25
1.00
.75
.50
0
(a) U.S. Domestic
Aluminum Market
Surplus = 100
50 75 100 125 150
Quantity of Aluminum
(Millions of Pounds)
(b) U.S. Export Supply
and Import Demand
Sd
Dd
U.S.
Export
Supply
U.S.
Import
Demand
a
b
c
x
y
Surplus = 50
Shortage = 50
Shortage = 100
LO3
18. Price (Per Pound; U.S. Dollars
1.50
1.25
1.00
.75
.50
0
Surplus = 100
50 75 100 125 150
Quantity of Aluminum
(Millions of Pounds)
1.50
1.25
1.00
.75
.50
0
50 100
Quantity of Aluminum
(Millions of Pounds)
Price (Per Pound; U.S. Dollars
(a) Canada’s Domestic
Aluminum Market
(b) Canada’s Export Supply
and Import Demand
Dd
Sd
Canadian
Export
Supply
Canadian
Import
Demand
q
r
s
t
Surplus = 50
Shortage = 50
LO3
Supply and Demand Analysis
19. International Equilibrium
• Import demand = Export supply
1.00
.88
.75
0
Equilibrium
50 100
Quantity of Aluminum
(Millions of Pounds)
Price (Per Pound; U.S. Dollars
Canadian
Export
Supply
e
U.S.
Export
Supply
U.S.
Import
Demand
Canadian
Import Demand
LO3
21. Economic Impact of Tariffs
• Direct effects
• Decline in consumption
• Increase in domestic production
• Decline in imports
• Tariff revenue
• Indirect effects
LO4
22. Economic Impact of Quotas
• Decline in consumption
• Increase in domestic production
• Decline in imports
• Quotas do not provide for any
government revenue but instead
transfer it to foreign producers
LO4
23. Economic Effects of Tariff/Quota
Quantity
Price
0
Sd
Dd
Pd
q
Sd + Q
Pt
Pw
a b c d
LO4
24. The Case for Protection
• Military self-sufficiency
• Diversification for stability
• Infant industry
• Protection against dumping
• Increased domestic employment
• Cheap foreign labor
LO5
25. Multilateral Trade Agreements
• General Agreement on Tariffs and
Trade (GATT)
• World Trade Organization (WTO)
• European Union (EU)
• North American Free Trade
Agreement (NAFTA)
LO5
26. GATT
• Three principles:
• Equal, nondiscriminatory trade
between member nations
• Reduction in tariffs
• Elimination of import quotas
LO5
27. WTO
• Established by Uruguay Round of
GATT
• 153 member nations in 2010
• Oversees trade agreements and rules
on disputes
• Critics argue that it may allow nations
to circumvent environmental and
worker-protection laws
LO5
28. European Union
• Initiated in 1958 as Common Market
• Abolished tariffs and import quotas
between member nations
• Established common tariff with
nations outside the EU
• Created Euro Zone with one currency
LO5
29. NAFTA
• Agreement between U.S., Canada,
and Mexico
• Established a free trade zone
between the countries
• Trade has increased in all countries
• Enhanced standard of living
LO5
30. Trade Adjustment and Offshoring
• Trade Adjustment Assistance Act
• Designed to help individuals hurt by
international trade
• Offshoring of jobs
• Shifting of work previously done by
a nation’s workers to workers
abroad
LO5
31. Petition of the Candlemakers
• Petition of candlemakers asking for
protection from natural light producers
such as the sun
• Tongue-in-cheek argument
supporting the idea of free trade
LO5
Editor's Notes
In this chapter we will take a look at some key facts about international trade and then start evaluating international trade using comparative advantage. We will also use demand and supply curves to explain how countries determine which goods they will import, which goods they will export, and the price that is charged for these goods. Lastly we will look at trade barriers and how they impact the outcomes of international trade.
International trade is a key component in most nations’ economies. It is what allows countries to grow. Without it, a nation might not have access to a key resource or a way to exchange its own key resources for other items needed. The U.S. economy has thrived on international trade throughout its history. In one sense, the U.S. was founded on the very basis of international trade as Christopher Columbus discovered the new world while looking for a new route to engage in international trade.
We can understand why Canada is the United State’s largest trading partner given the fact that the United States and Canada share a lengthy border that facilitates trade. The trade deficit with China has been decreasing in recent years as their economy grows, providing the citizens with more disposable income with which to purchase imported items coming from the U.S. Our dependence on foreign oil still causes concerns in many sectors because if the supply was disrupted for any reason, it could cause severe supply shocks in the economy.
The principal U.S. exports reflect the fact that the United States has a more skilled workforce and also a thriving agricultural industry. Frequently the U.S. is referred to as the breadbasket of the world due to our ability to produce crops such as wheat and corn.
It is interesting to note that the U.S. imports some of the same products they also export. In today’s economy, most goods that involve basic manual labor are made in countries that have a less skilled workforce. Clothing is a prime example.
This Global Perspective illustrates the largest export nations in the world. China has the largest share of world exports, followed by Germany and the United States. These eight countries account for approximately 46% of the world exports.
This Global perspective shows exports of goods and services as a percentage of GDP for selected countries. Although the United States is one of the world’s largest exporters, as a percentage of GDP, its exports are quite low relative to many other countries.
Why trade? The reason is that nations, as well as individuals, can gain by specializing. With trade, everyone ends up better off than before. The benefits are derived from three facts: (1) the distribution of natural, human, and capital resources is uneven among nations, (2) not all nations have the same degree of technology, and (3) people have different preferences. In a country such as China, which has an abundant supply of cheap labor, producing labor-intensive goods makes sense. Other countries may be blessed with an abundance of natural resources and therefore can produce land-intensive goods inexpensively. Industrially-advanced nations can produce goods that require large amounts of capital at a low cost. As countries evolve, their economies will also evolve and change. Countries that once focused on labor-intensive goods may now move towards more capital-intensive goods as their firms acquire more capital and experience.
Comparative advantage is used to explain the relationship between specialization and international trade. A nation does not have to have an absolute advantage in producing a good to benefit by trading. Absolute advantage exists when one nation is the most efficient producer of a good, meaning it can produce the good at the lowest possible price. Under comparative advantage, the country can produce the good at a lower opportunity cost, which measures what must be given up to produce it. In our initial analysis, we will look at two nations with similarities. We will use the U.S. and Mexico and assume that the U.S. has an absolute advantage over Mexico in producing two goods, beef and vegetables.
The production possibilities curves illustrate the relationship between vegetables and beef in each nation. For example, in the U.S., if the country produces 12 tons of vegetables, it can only produce 18 tons of beef. If the U.S. were to increase vegetable production to 15 tons, beef production would go down to 15 tons.
In Mexico, the numbers are much smaller as their economy is not as large. If Mexico produces 4 tons of vegetables, then it can only produce 8 tons of beef. To produce more beef, a country must produce less vegetables and vice versa.
If each country is isolated and self-sufficient, each must decide what mix of beef and vegetables it desires to produce, recognizing the fact that to get more beef, the country must produce less vegetables. Mexico has a higher opportunity cost as it must give up 2 pounds of vegetables for every pound of beef, whereas in the U.S., it is a 1 to 1 ratio.
This table lists the international specialization according to comparative advantage and the gains from trade for the U.S. and Mexico.
Since the U.S. can produce beef for less than Mexico, it makes sense for the U.S. to produce beef and trade with Mexico for vegetables. Mexico has a comparative advantage in vegetables as the country would only have to sacrifice ½ ton of beef to gain a ton of vegetables, whereas the U.S. would have to give up 1 ton of beef to gain a ton of vegetables. By doing so, both nations will benefit as they work out the terms of trade. The U.S. will end up getting more than 1 ton of vegetables for one ton of beef, and Mexico will get more than ½ ton of beef for 1 ton of vegetables, which it would get without trade.
The trading possibilities line shows that both countries end up better off with trade. With comparative advantage, the nations have complete specialization in which each nation only produces the good that it has the comparative advantage in and then imports all of the good for which it has a comparative disadvantage. Each country ends up with more of both goods. Both the U.S. and Mexico made more efficient use of their resources by specializing in production of the good for which they have a comparative advantage.
As we can see in these graphs, the maximum production line for each country has rotated outwards to provide each with a higher level of output under trade. In the long run, all parties benefit from trade, at any level. The slope of the trading possibilities line reflects the terms of trade between the two countries.
While we were using a very simple example of two products and two countries, the analysis would be the same for any number of products and countries. In the real world we are also faced with a concave production possibilities curve instead of the linear one from our analysis. This means there are increasing opportunity costs in the real world and, at some point, the underlying basis for further specialization and trade disappears so both countries end up producing some of both products.
This is why we end up with domestically-produced products competing with similar imported products. However the numbers come out, everyone ends up benefitting somehow from trade. In addition to promoting efficiency and competition among firms, nations benefit as they build relationships with their trading partners that can help to prevent disagreements that might lead to wars.
We can apply supply and demand analysis to see how equilibrium prices and quantities of imports and exports are determined. The amount that a nation imports or exports of a particular good depends on the difference between the equilibrium world price and the equilibrium domestic price. It is assumed that when the country starts to trade, then the domestic price will either rise or fall to the world price level.
The equilibrium domestic price is the price that would prevail in a closed economy that does not engage in trade. When the world equilibrium price is above the domestic equilibrium price, there would be an export surplus as suppliers would produce more than that demanded by the domestic economy and would then export it to receive the higher world price.
If the world equilibrium price is less than the domestic equilibrium price, the opposite effect occurs.
Here in these graphs we see the effects of differences between the world price and the domestic equilibrium price. The domestic equilibrium price is $1.00/pound. If the world price is above that point, say at $1.25/pound, domestic producers will produce 125 million pounds, which creates a surplus of 25 million pounds over the domestic demand. The surplus will be exported and sold at the higher price. For each price above the domestic equilibrium price, there will be surplus and the U.S. will export that surplus at that price, creating the U.S. export supply.
For each price below the domestic equilibrium price, the U.S. will have a shortage and will import aluminum equivalent to the size of the shortage. Doing this for each price creates the U.S. import demand.
Here we switch our viewpoint to Canada for illustration purposes. We can see their domestic equilibrium price is $.75/pound, and we see the surpluses and shortages that occur when the world price is higher or lower than that.
Now we can combine the two countries into one analysis to determine a world equilibrium price. If we combine the U.S. export supply curve and import demand curve with the Canadian export supply curve and import demand curve, we find the equilibrium point where one country’s export supply curve intersects the other country’s import demand curve. In this example that occurs at a price of $.88/pound. After trade, this would be the price found in both countries.
Even though a nation gains from trade as a whole, some domestic industries may be hurt by trade and some industries may need to be maintained even if they are not cost effective for reasons such as national security or defense. Countries use several different techniques to protect industries from the harmful effects of trade.
Tariffs are one of the most common barriers to trade. A tariff is an excise tax on the dollar value, or quantity of an imported good. Revenue tariffs are applied to a good that is typically not produced in the domestic country, and they are designed to raise revenue for the domestic government. Revenue tariffs tend to be fairly low.
Protective tariffs are another matter. They are applied to goods that do have a domestic competitor and are designed to make the imported goods cost at least as much as, or more than, the domestic good, so these tariffs can be quite high.
Import quotas are another common barrier countries use. A quota is a limit on the amount of a particular good that could imported in a given amount of time. By limiting the supply, you drive the price up, thereby making the imported good more expensive than its domestic competitor.
A nontariff barrier can include such things as requiring extensive documentation for imported goods, restricting the location available to receive the imported goods, or having unreasonable standards for imported goods.
A voluntary export restriction is when foreign firms “voluntarily” agree to limit the amount of their exports to a particular country. The catch is that even though it was voluntary, it was done under the threat of mandatory barriers so it really was not done through free will.
Export subsidies consist of government payments to a domestic producer of export goods and are designed to help that producer by reducing its production costs. This should enable the producer to compete more effectively against the imported goods.
Because tariffs are the most commonly used trade barrier, we will look closer at their effect on the economy. The direct impact of tariffs includes a decline in domestic consumption as the desired goods are now at a higher price than consumers are willing to pay, an increase in domestic production as suppliers will be able to receive a higher price for the goods, a decline in imports which was the whole point of the tariff, and tariff revenue accruing to the domestic government.
Tariffs also have an indirect effect beyond just basic supply and demand concepts. Since the foreign country supplying the import will sell less, their economy will decline. If they imported any products from the domestic country, those would decline as well. Tariffs also to some extent subsidize inefficient producers which can be a drain on the economy.
Quotas have much the same effect as tariffs with the major difference being that quotas do not provide any government revenue. With a tariff, the government could theoretically use the revenue to compensate firms and individuals who have been adversely affected by the international trade. With quotas, the excess revenue provided accrues to the foreign producer, not the domestic government.
This graph illustrates the effects of a tariff or quota on domestic supply and demand. At the world price, there is a shortage in the market equivalent to ad. This shortage will be solved with imports equivalent to ad. When a tariff is placed on the good, the price increases, and the quantity produced by domestic firms will rise while the quantity demanded by domestic consumers falls. The shortage shrinks from ad to bc. The foreign producers will continue to receive the world price.
The quota has essentially the same effects except that the higher price is now received by foreign and domestic producers. Note that the yellow area reflects the additional revenue that under a tariff will go to the government but with a quota will go to the foreign producer.
There are many different arguments used to support the use of trade barriers. Military self-sufficiency preys on people’s fear of another war and being unable to defend themselves, so they argue that the industry related to the military must be protected and maintained domestically.
Diversification for stability looks at the need to have a well-rounded economy that is not too heavily invested in any one area that could be subject to collapse. (That is the proverbial “all of our eggs in one basket” argument.)
New or infant industries argue that they need protection during the infancy stage to help them grow and become strong enough to compete on their own. This may be needed especially in a developing nation that is just moving into the world economy, but care must be taken not to prolong the support. Other options besides tariffs or quotas may work better to help the industry develop.
Dumping is also considered a big problem that needs addressing. Dumping occurs when a foreign firm deliberately sells goods below their cost in an attempt to drive the domestic industry out of business. Once the domestic industry is gone, the foreign firm is then free to raise prices to whatever level they desire. This may even be done with the support of the foreign government. Dumping is considered an “unfair trade practice,” and sanctions can be imposed against the countries or firms involved.
The final arguments deal with labor issues. Saving American jobs is a standard campaign slogan for American political candidates. While imports do eliminate some U.S. jobs, they also create new jobs in industries that will be exporting to the foreign country that now has disposable income to spend due to selling their exports. It also creates jobs for individuals involved with importing the good into the country. History has shown that trade barriers often have the reverse effects and can reduce domestic employment especially if foreign countries retaliate. It is argued that the cheap foreign labor will drive the wage rates in the U.S. down, reducing our standard of living. Again, the saying is “a rising tide lifts all boats.” Everyone benefits from trade.
The modern trend is for nations to seek to reduce or eliminate trade barriers as they recognize the fact that trade is a good thing. Each of these trade agreements reflect the trend towards increased free trade.
First signed in 1947 by 23 nations, including the U.S., GATT’s aim was to provide a forum for multilateral negotiations to reduce trade barriers. Since the enactment of GATT, tariffs on thousands of products have been eliminated or reduced with overall tariffs decreasing by 33%. Each round of negotiations added more countries to the agreement and further increased international trade.
The WTO is the largest organization devoted to promoting international trade. The current round of negotiations began in 2001 in Doha, Qatar and are aimed at further reducing tariffs and quotas as well as agricultural subsidies that can distort trade.
Critics are concerned that the WTO may supersede the authority of a member nation to protect its own environment and workers by allowing firms to move to countries with less restrictive laws. Proponents respond that these concerns are outside the scope of WTO authority and should be dealt with in other forums. They also feel that as developing nations gain from trade, they will be better equipped to help protect their workers and environment.
Currently at 27 member nations, the EU is one of the most dramatic examples of a free-trade zone. In addition to eliminating almost all tariffs and quotas between the member nations, it has also liberalized the movement of capital and labor with the union and created common policies on matters of joint concern, such as agriculture, transportation, and business practices. The introduction of the Euro currency in the early 2000s, which was adopted by 16 of the member nations, has enabled those nations to improve their standard of living by making it easier to price and sell their products in the euro zone nations.
So far, time has proven the critics of NAFTA wrong. Since NAFTA was enacted in 1993, over 20 million jobs have been created in the U.S., trade among the three nations has increased, and the standard of living in each nation has also increased.
The Trade Adjustment Assistance Act of 2002 introduced some innovative policies designed to help those workers who had been displaced by international trade. The Act provided financial assistance beyond unemployment benefits, relocation allowances, and retraining services. Critics argue that helping one small section of workers is not fair to other workers who lose jobs for a variety of reasons.
Offshoring of jobs is another major concern to workers, but it is not necessarily bad for the economy. Offshoring can increase the demand for complementary jobs in the nation and increase the off-shored workers’ income to purchase goods produced in the nation.
French economist Frederic Bastiat argued that the lawmakers must impede the power of the sun in order to increase the production of candles. This was used to show protectionists the inefficient arguments and conclusions that are associated with trade protections.