e\u)
,.::::.. ,-
Situati*n
First-best world
Distortions
[xternal cosis
Externai benefits
Monopoiy polver
lvlonrpsotiv power
(a case not deveiop?iC
in thrs texibook)
Distorting tax
Distorting subsidy
P:> Slvlc
P rryith tax > -9Avf C
Pwith subsidy < 5M{
Distortions and J'heil Ft}'ects
lneentives at the Margin
P:MB-MC:SMB:SMC
SMC>Pi:MB:MC:S{dB}
SfrlB -. P l: IVB : MC: SMC
Chapter 10 Argtu;tLnls Jiir ,-rt.:./ .rgcrirt.rt Pnriecf iott
Effeets
Exactly the right amount is supplieC
anC demancled.
Too rluch is suppriecl becau:e suDljlters
make and seli extra uniis far which the
socral costs exceeci the plrce (whiclr equals
MCand MB ar-td 5M8i. Exarnple. production
that pollut*.s air or lvater.
Not enoi:gh ts demanded because
demanders receive only private benefits
equai to the price, rrot the full social
benefiis. [xample: trarnrng or education
ihat brings extra gains in attitudes or
leam skills.
I'jot enough is demanded because the
monopoly :ets the price too high.
Not *nough is sunpled because the
moriopiony sets its br:ying price loo low.
Example. a single firm that dorninates
a labor market anrj uses its power
to sei a lou; wage.
l'.lot encugh is demandeej becaitse the tar:
makes the price io huyers exceed the
revenLje per unit receivecl by sftpliers.
Too rnuch is demandeo becarlse the subsidy
makes the price to iruyers iower than ihe
rev€nue per unit received by suppliers.
SMB
)-
/' \llli<et pricr'
llB Plilatc nrar.einal benefit olal auir,it-v (to those v,ho demanrl iti
,1'1{' Privale rlrrginal ccst of an activity ito those *'ho sripply iti
.tl.1lJ Socill rmrginrl herrelit r:f an activit-v (to er,er-vbody iriiecied.)
.tJli Solri uraryinai eosl of m;rctivity 1to er,'elybodl aft'ected)
In a first-best norld lree tracle is ecorrornicaily efficient. Frce tracle aliows the "'irtvis-
ible hand" of nrarket competition ter reach globaily Private pt'oducers. reacting to the sig-
rral of the niarket pdce, exparlcl produetion in each country to levels that are as good as
possible ibr the rvorld as rl'hole. Irrit,ate cLtilsunlers, also reacting to price signals. expatrd
theirpurchases of products to levels tliat make {he r.vhole r,vorlcl as rvellolf as possiirle.
.
Our lvorld is not ideal. Distcrlions exist, attd thel' clo not autoruaticali-y cancel each
other out. The distortions rcsult lrom ongoing gaps betiveen tire privaie and social
lnternational Economics - Vol. 1
par t IWO lr,r.li l,trlicr
216
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5e*efitS Or Costs Of an aCtivity. We live in a:,.;.=;1d'lr-:\1 Itiri d, one tl-lat includes
distortions. As long as these gaps exist bets'een r,vhat private inclividuals Llse t{} l}lake
therr ilecisions and the fuil ef-f'ect*q of these ilecisions on society. pt'ivute u{:fiott'\ u)ill
not !etic! k; lke b<:.st :ta'\,\il1!e ouiL:otile'\ fb| societr''
'flrere ale trvo niajor sources ol clistortiolrs in ail econolllv. Iiil'st. ;r ...
lnternational Economics, 1 5th Edition 139
fhapter 7 ( irrnl.'tl'' rrirri Tr''tiLl
Develcping a new exportable natural resource
can {a'Jst prokllems. One. discussed iater in
this chaptel is the prcblem of "immiserieing
growth"; lf you are already exporting and- ycur
J*pott expansion lowers the wcrld price of your
exports, ycu could end up worse off' A second is
the apparent problem called the l":r:ii' ':iii'rj''i:';'r'
in which new production of a natural resour{e
results in a decline in production of manuf*c-
tured products (deindustria lization)'
For the Netheriands. ihe origin of the disease
was the development of new natural gas fields
under the North Sea. li leemed that the mole the
Netlrerlands developed its natural gas production'
the mcre depreii'ed its manufaeturers of traded
gcods became' Even the windfaii price increases
inut tf,. two oil shocks offered the Netherlands
(all fuei prices skyrocketed, including that for
naturai gas) seented to adci to indusiry's slump'
The Dutth disease has been thought to have
spread to Britain. Norway. Australia, Mexico'
ancl cther countries that have newiy devek:ped
natural resourceg'
The main premise o{ this fear is corre'ct: Under
many'realistic conditions, the windfall of a ner"'r
natural resource does indeed erode pro{its and
production in the manufactured goods se'tor'
Deinclustrialization cccurs for the same reason
that underiies the Rybczynski theorem intro-
duced in this chapter: The new s€ctor draws
resources away from the manufacturing secto!-'
Specifically" to develop proriuction of the naturai
resource, the sector must hire labor away from
the manufacturing sector, and it must obtain
capital that otherwise would have been invested
in the manufacturing sector' Thus, the rnanuiat-
turing sector contracts.
lournalistic coverage of the link beturee*
natural resource development and deindustii-
"f
i=rtion tends to discover the ba:ic Rybczynsl*i
effect in a different way' The press tends i*
""tli*
that the develcpment of the expcrta*ie
natural regource causes the nation's {$tl*l}{}{
to rise in value on foreign exchangc r**rk*t't
because of the increased demand far li:e tc$?t"
iryt .uttunry as fareign buyers pay f*r ii: r*:'
pu,:rf,rt*u. A higher vaiue of the natio*'s cur'
ienry makes it harder for its indurlriai firn:si*
.o*p*t" against foreign products whose pr*'{e
is now relativeiy lowe*r. lo the manufactxr*'tag'
sector this feels like a drop irr demand' a** '€*e.
,*.io, .ontracts. The foreign exchang* r**rk#"
in gravitating back toward the origin*l bsi'Bt3{*
cf irade. is pioducing the same result w* s'r#i*s
get from a barter trade model: lf you eryryp
i'rore o* a good, You'll end uP either *;x$sq.€1
ing l*r, af
-another
good er impo*ir'g ry'
Sorietfring has to give so that tiade wril'rctilrff
to the same balance as before'
Even though the Dutch disease does lead
to some cleindustrialization. it is not clear that
this is really a national problem' Merely shifti ...
lnlernatl:na] Economics- 1 5th Edition 39i9,:
Chapter 13 Tr,rrie rrnd rlle Enr-rronncrrr :1Jrl
polluting process (e.g." foreign steel) or by taxing exports of products that generate
pollution when consumed 1e.g., gasoline),
The rest of the chapter takes up discussion of each of three fypes of sources of
externai costs noted in Figure 13.3. First rve look at issues when the external costs are
ones we impose on ourseives-domestic pollution and similar national eKternalities.
Then we analyze cases in which the activity of another country irnposes an external
cost on our corlntly-transborde| pollution and simriar cross-country externalities.
F'inally. we examine the challenges of global external costs-giobal pollution and
similar rvorldwide externalities.
f" iq'+ $ il Fa f'* i3 f,} * *;? H S"ni { F* g- L L* "g' f i; fu
Economic activities so;netimes produce significant arnounts of drtffiesti{: pollution
(or sin"riiar ent'ironmentai degradation). That is, the costs of the pollution f-all only (or
alnrost completely) on people within the country. If'there ure no policies that.fbrt:e
nurket rlecision-nwkers tts internalsa these external costs" then we reach two surpris-
ing conclusions about trade with domestic pollution. First,.free trude cun rechtce the
wetl-being of'the t:ountt1,: Second the countt"l' cat entl up exporting the wrutng prod-
ttr:fs: it exports products thatit shouid import, for insiance.
To see this. consider fhe case of an induslry whose production activify creates sub-
stantial pollution in the local rivers. lakes. and *{roundrvater. For instance" consider the
paper-rnaking industry in a country like Canada. It is very convenient lblpaper com-
panies to dutnp their chemical wastes into the local lakes, and the firms vi"ew this as a
fi'ee activifv iif the Canadian governrnent has no policy limiting this kind of pollution).
The Canadian companies are happy that the lakes are there, and the firms'operations
thrive, producing profits, good incornes fbr their workers. and good products for their'
custolrers at reasonable prices.
Othel Canadians have a different view olcorirse. Having the lakes 1lrn brcwn with
chemical \vaste spoils the scenery the srvimrning, the fishing" and other services that
tliey get frorn their lakes. The dumping of rvastes into the lakes imposes an external
cost on other users ofthe lakes.
The top haif of Figure 13.4 shou's the Canadian market for paper, with the dontes*
tic supply curve reflecting the private marginal cost ol production and ttre domestic
demand curve reflecting the private marginal benefits of paper consumption (which
are also the sccial ntarginal benefits if there are no external benefits). The bottom half
of'Figure 13.4 shows the additicnal costs imposed on the country by tire pollution
that results fi'otn producrion of paper in the country. We keep track of this legative
externality using the niarginal external costs (MEC) ol the pollution. (This ligure is
the analo-* of Figure 10.2, ...
ari-
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cHAPTER 1 current Multinational challenges andthe Global Economy
U.S. Dollar-Denominated lnterest Rates
1-Month Maturities
U.S. Prime Rate 6 00%
Certificate of Deposit Rate 0 400%
LIBOR 0.260%
London lnterbank Offer Rate
London interbank rates apply to the buying
and'selling of eurodollar deposits between
banks in the international markets.
Notes:
Average rates for MaY 201 1.
U.S. Federal Funds target rale = o O"/"4 25"/"
Eurodollar DePosit
Offer Rate
I
) Eurodollar SPread
)
Eurodollar DePosll
Bid Bate
0.275%
o.255%rii*:.
ig'
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Eurodollar deposits are dollar-denominated
accounts in financial institutions oulside of
the united states.
rter-
dely
)riv-
For
)S AS
the
ein
:stic
Iese
sred
)ank
Ioan
/een
rket
isa
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that
ze is
rnks
Deposit rates are higher in the eulocurrency malkets than in most
domesti:c currency
markets because the finicial institutions offering eurocurrency activities are not subject
to
murry of the regulations and reserve requiremen-ts imposed on traditional
domestic banks
and banking activities. with these costs removed, raies are subject to mole competitive
pressures, d*eposit rates are higher, and loan rates are lower. A second majol area of
cost
avoided in the eurocurrency niarkets is the payment of deposit insurance
fees (such as the
Federal Deposit lnsurance" Corporation, FDIb, and assessments paid on deposits
in the
United States). Exhibit 1.3 illustrates how eurodollar deposit and loan rates'
including dollar
LIBOR and LIBID rates, compare with traditionai domestic interest rates'
The Theory of Comparative Aclvantage
The theory of comparative advantage provides a basis for explaining and
justifying interna-
tional trade in a model world assumed to enjoy free trade, perfect competition'
no uncer-
tainty, costless information, and no gou"rn*".ri interference' The theory's origins
lie in the
work of Adam Smith, anJ particutarly with his seminal book TheWealth
of Nations published
in 1776-Smith sought io explain why the division of labor in productive activities' and
subse-
quently international trade of those goods, increased the quality of life
for all citizens' Smith
based his work on ihe concept ol abiolute advantage,wheie every country
should specialize
in the production of that good it was uniquely suited for' More would be
produced for less'
10 PAfil" 1 Global Financial Environment
Thus. by each country specializing in products for which it possessed absolute ad,vantage,
countries could produce more in total and exchange products-trade-for goods that were
cheaper in price than those produced at home.
David Ricardo, in his work On the Principles of Politicat Econonzy anrl Taxotion pub-
lished in 18i7, sought to take the basic ideas set down by Adam Smith a ferv iogical steps
further. Ricardo noted that even if a country possessed absolu ...
82 lnternational Economics - Vol. 1Part One TAc Tlreorr of.docxevonnehoggarth79783
82 lnternational Economics - Vol. 1
Part One TAc Tlreorr of IntenvttintLlTi,ult
sector {the one using the country's scarce facior intensively;. The changes in prodr:c-
tion have one set of effects on incomes in the short run. but another in the long run.
Short-Run Effects of Opening Trade
In the *$:*rt't ru* laborers. plots of land. and other inputs are tied to their curreirt
lines of prodiiction. The denand for these t-actors, and therefore the incornes or
returns they earn, depend on the sector in which they are empioyed. Sorre peopie
rvill enjoy higirer demand tbr the factors thev have to offer, because their iactors are
employed in the sector that is atteinpting to expand its production. With the open-
nig to tree trade, the expanding industries in oLrr exarnple are u,heat in the tJnited
States anil cloth in the re st of the world. in the Uniled States landlords in rvheat-
grorving ateas can clrarge higher rents because thelr land is in strong derna*d. U.S.
iurn1**k.rs in wheat-glowrng areas are likelv to get (temporarily) irigher wages.
Foreign clothrvorkers cin also dernand and get higher wage rates. Foreign landlords
in thJ areas raising cotton atld u,ool ibr cloth-making can also get higher re*ts'
rlrLd'rntrii!. rlru rwllrrc vl fcrvrvr., t- th,c clcclir,ir,6 iutlu;tri'+t g.g. a!'31.11'.t'ot!.et'S'
U.S. landlords in areas supplS'ing the cloth-nraking industry, fbreign rvheat-area laitd-
lords and farnrhands- lose income through reduced clemand and therelbre reduced
prices fbr fheir services.
Fol the shorl run" tiierl. gains and losses divide by output secfor: All groups tied
to rising sectors gain, and all groups tied to declining sectoi's lose. One lvould expect
empiovers. landlolds. and workers in the declining sectors to uttite in protest.
The Long-Run Factor-Price Response
ln the i<,r*q r*-*n factors can move between sectors in respr'rnse to ditferences in
returns. Sellers of the same factor r.viil eventually respond to the inconle gaps that have
been openecl up in the short run, Sorne U.S. clothrl,orkers will fincl better-payingiobs
iu the wlieat sector. r\s the supply of labol into the nheat sector increases. lvages ilt
the rvheat sectol'decline. As the remaining supply af labor to the clolh sector shritrks,
wages in the cioth sector increase. Sorne U.S. cotion- and wool-raisirig land will also
get better rents by converting to lvheat-related producfion, bringing rents in rjilfbrent
areas back in 1ine. Similarlv, foreign farmhands and landlords r,vill flnd the pay better
in the cloth-relate<l sector. As the sr:pplies of the f'actors to the two sectors change in
the iong run. wages and rents iri the cioth sector decrease, and wages aud rcnts in tlte
lr,heat sector increase. The full process of the effects olopening trade on l'aclor prices
in the long run is summarized in Figure 5.1.
when the facto|s respond by rnoving to the better-paf ing scctors' will all n'ages arid
rents be bicl back to their pretrade levels'l No. .
This document summarizes the state of the U.S. ethanol industry in 2016. It discusses the industry's growth from producing 1 billion gallons annually to over 14 billion gallons currently. It highlights the resilience and strength of the industry, as well as its economic and environmental benefits. The document also outlines challenges facing the industry, including EPA policies that limit the amount of corn ethanol used and do not accurately reflect ethanol's emissions reductions. It concludes by emphasizing the need to grow demand through exports, higher octane fuels, and recognizing ethanol's carbon benefits.
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Analysis of a Tariff
ig$st economisrs far,or ietting nalions tr"ade freeiy', with few larifit or oiher barriers tc
trade. Indee{ economists have tended to ire even more critical of trade barriers than
har.e other€roups in society, even though economists have taken great care to lisi tlie
e.x*eptionai"cases in wilifli they feel trade liarriers caii be justified. Such agreernent
among eccnomists is rare. Why should ihey agree on this one issue l
. T'he srriking consensus in favor of free trade is based primarily on a body of eco-
nomic analysii cleffionstraiing that iheie are usually net gains fu'om fieer trade. both
f*r naiions alel lbr the world. Chaptel2 shorvec!- with detnand and suppil' ctrves. ihat
free trade brings greater aggregate well-being than no trade, The maill task of this
r, -.--... ^.. I rL . +'^rr.'.,.;r-,! ,.1-.--r,:r-c .r{'Ptrr It ic *n nn rlrnnrF lrrce-11Xflg p,lliCieS lVil}f aL lluptUl illlU tlltr ltlll\rWIlrg lildlitt't) ur I dr t rr IJ tu uvt'rP(trv ri!!
wide range offrade barriers. barriers that do not necessarily shut out all international
trade. It ii mainly on this more detailed analysis of trade policies lhat economists have
based their view ihat liee trade is generally better rhan parlial restrictjotts on ffade,
with a list of exceptions. This analysis makes it easier to understand what divides the
malonr-1'- of economists frcm grcups cailirig lbr resiricficfis oii f,"8de.
T'o see what is lost or gained try putr.ing up barriels to international trade. let us take
a close look at the eftects of the classic kind of trade barrier, a lariff on an imported
prodnct. This chapter spelis out $'ho is 1ike1y to gain and who is likely to lose {ion]
i tarift-, r"nil explains conditions *nder ..^:ltich a rtalion eouLl end up better ofT fronr a
tarifl Chapfers 9 through I I wiil exlend tlie basic slory lold here.
A ?*riff, as the terrn is used in intelnational trade. is a tax on importing a good
n! \{r!'\ ire irrtn n {-{rulltv. rrsrrallr' collctrtcd bv eustonls oflicials at the place of'etttrv.
'farills come in two main types. A sfi*{*f;{ Xari'ff is stipulated as a money fiIilounl
per unit oi iinpr:rt, such as clollars per ton of steei bars, or dollars per eigirlcylinrier
rw.o-door sporr,s car. A-n eq-i v***r-er:: (on the velue) t*nlff is a percentage of the esti-
mated market value of tire goods *'hen they reach the importing counfry. \Are will not
pav much attention to this distinction, because it nrakes alnrost no difl-erence ic our
conc,lusirrls.
-iariffrates ilave treen cleclining, but they'are stiii intportant. Indeed" only one coun-
rry in the r.','orl4 Singapore, has na tariff.q. {ln adclition, two aufonomolls custoffis arsas,
l-{ong Kong and Macau, harre no tarilli}.
Iior th* ililustrialized eoLlntries. averagr tariff rales in the 1930s were about 60
p*r'ceni. in the aJtennath r:f the infarnous Smoot-Ffawley tarifli lhat fhe United States
enacie{ in 1930 and the i ...
librarians. Government purchases averaged a bit lessthan o.docxSHIVA101531
librarians. Government purchases averaged a bit less
than one-fifih of U.S. GDP during the last decade'
r Government purchases, and therefore GDP' exclude
transfer payments' such as Social Securily' welfare
benefits, and unemployment insurance' Such pay-
ments are not true purchases by the government or
true earnings bY the reciPients'
The final spending component, net exports'
reflects international trade in goods and services'
Goods, oT merchandise traded, include physical items
such as bananas and DVD players (stuffyou can put
in a box). Services, or so-
cal1ed inuisibles, include
intangible items, such
as European tours and
online customer service
from India. Foreign Pur-
chases of U.S. goods and
services are counted as
part of U.S. GDP. But U.S.
purchases of foreign
goods and services are
subtracted from U'S. GDP.
lrli:t expoli.$ equal the
value of U.S. exPorts of
rl*f :'ihe ldntlct':i
by resource suppliers in the economy' Thus' we can
say that
Aggregate expenditure : GDP : Aggregate income
A prod.uct usually goes through several stages
involving different firms on its way to the consumer'
a woodJn desk, for example, starts as raw timber'
which is typically cut by one firm, milied by another'
made into a aest< by a third, and retailed by a fourth'
We avoid double counting either by including only
the market value of the desk when it is sold to the
ffiffiF Se*cd #ffi t$?c
6ms*swe &PPr*ateh
The expenditure aPProach
sums, or aggregates, sPending
on production. The income
approach sums, or aggregates'
income arising from that Pro-
duction. Again, double-entry
bookkeeping ensures that
the value of aggregate outPut
equals the aggregate income
paid for resources used to Pro-
duce that output: the wages,
interest, rent, and Profit aris-
ing from Production.The Price
of a HersheY bar reflects the
income earned bY resource
suppliers along the way'
Aggregait int';t:'le equals the
sum of all the income earned
GDP based on the income approach' For example' sup-
pose you buy a wooden desk for $zoo' This final mar-
let vatue gets added directly into GDP' Consider the
history of it,at desk. Suppose the treethal-gave its life
for your studies was cut into a iog and sold to a miller
for
-$zo,
who converted the log to lumber that sold for
$5o to a desk maker, who made the desk and
sold it
for $rzo to a retailer, who sold it to you for $zoo'
Column (I) of Exhibit r lists the selling price at
each stage of production' If all these transactions
were add-*ed .,p, ttt" total of $39o wouid exceed the
$zoo market value of the desk' To avoid double
count-
ing, we inciude oniy the value added at each stage'
lisied in column (3) as the difference between the
pur-
ch"r" pric" ana ihe seliing price at that stage' Again'
:r,;.1:'i,ri I
Computation of Value Added lor a New Desk
fina1 user ot bY summmg
the value added at each
stage of Production. The
vaiue added bY each fi,rm
equals that firm's seliing
price minus Payments
for i ...
Panel (b) of Exhibit 8 shows the distribution andefflcienc.docxalfred4lewis58146
Panel (b) of Exhibit 8 shows the distribution and
efflciency eifects of the quota'As a result of.the
quota'
U.5. consumer surplus declines by the combined
biue
and pink areas. Area a becomes producer surplus
and
thus invoives no loss of U.S' welfare' Area c shows
the
increased economic profit to those permitted by the-q,ro,u
,o sell Americins 3o miliion pounds for $o'r5
pu, pouna, or $o.o5 above the world price' If foreign
"*por,"r,
rather than U.S. importers reap this profit'
area c reflects a net loss in U'S' welfare'
Areab shows a welfare loss to the U'S' economy'
because sugar could have been purchased abroad
for
io.ro p"t iorrnd, and the U'S' resources employed
to increase sugar production could have been used
more efficientt-y proaucing other goods' Area d is
also a welfare loss because it reflects a reduction in
consumer surplus with no offsetting gain to anyone'
Thus, areas b and d in panei (b) of Exhibit 8 measure
the minimum U.S' welfare loss from the quota' If the
frofit from quota dghts (area c) accrues-to
foreign
prodrr.err, this increases the U'S' welfare loss'
Quotas *m Practsee
The United States has granted quotas to specific
countries. These countries, in turn' distribute these
q"o," tignO to their exporters tfrro.uSh a variety of
i-,u"r,t. iy rew ar ding domestic and foreign producers with
higher prices, the quota system creotes two -groups
inlent
oi rrriring and'perpetuating these quotas' Lobbyists for
foreign producers work the halls of Congress'
seeking
tf,e rlghl to export to the United States' This strong
r"pp"t, from pioducers, coupled with a lack ofoppo-
sition from consumers (who remain rationally
igno-
rant for the most part), has resulted in quotas that
have lasted decades. For example, sugar
quotas have
been around more than 50 years' In January
zoog' the
world price of sugar was about $o'rz a pound' but
U.S. businesses that need sugar to make
products'
su.h u, candy, paid more than $o'zo a pound' costing
consumers an extra $z billion annualiy' Sugar grow-
"rr,
*ho account for only r percent of-U,S' farm sales'
have accounted for r7 percent of political contribu-
tions from agriculture since r99o'1
Some economists have argued that if quotas are
to be used, the United States should auction
them off
to foreign producers, thereby capturing at
}east some
of the dlfference between the world price
and the U'S'
pri.". A.t.tioning off quotas would not only increase
federai revenue Uut would reduce the
profitability of
qrro,"r, which would reduce pressure on
V/ashington
i'.'fvfoLurf Schroeder, "Sugar Growers Hold Up
Push for Free Trade"'
Wall Street Journal 3 February 2004'
266 PART 4 Ilrl"rr'ariurlrr \l.) :oL cr't0 rt'cs
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to perpetuate them' Anencar "li:;n:eis
are li::
,f-t" o"iy victims of sugar quolas' lbousands oi ?:::
farmeri around the world miss oui on an oppor:'--
nity to earn a living growing sugarcane for export.
lnternational Economics, 1 5th Edition 139
fhapter 7 ( irrnl.'tl'' rrirri Tr''tiLl
Develcping a new exportable natural resource
can {a'Jst prokllems. One. discussed iater in
this chaptel is the prcblem of "immiserieing
growth"; lf you are already exporting and- ycur
J*pott expansion lowers the wcrld price of your
exports, ycu could end up worse off' A second is
the apparent problem called the l":r:ii' ':iii'rj''i:';'r'
in which new production of a natural resour{e
results in a decline in production of manuf*c-
tured products (deindustria lization)'
For the Netheriands. ihe origin of the disease
was the development of new natural gas fields
under the North Sea. li leemed that the mole the
Netlrerlands developed its natural gas production'
the mcre depreii'ed its manufaeturers of traded
gcods became' Even the windfaii price increases
inut tf,. two oil shocks offered the Netherlands
(all fuei prices skyrocketed, including that for
naturai gas) seented to adci to indusiry's slump'
The Dutth disease has been thought to have
spread to Britain. Norway. Australia, Mexico'
ancl cther countries that have newiy devek:ped
natural resourceg'
The main premise o{ this fear is corre'ct: Under
many'realistic conditions, the windfall of a ner"'r
natural resource does indeed erode pro{its and
production in the manufactured goods se'tor'
Deinclustrialization cccurs for the same reason
that underiies the Rybczynski theorem intro-
duced in this chapter: The new s€ctor draws
resources away from the manufacturing secto!-'
Specifically" to develop proriuction of the naturai
resource, the sector must hire labor away from
the manufacturing sector, and it must obtain
capital that otherwise would have been invested
in the manufacturing sector' Thus, the rnanuiat-
turing sector contracts.
lournalistic coverage of the link beturee*
natural resource development and deindustii-
"f
i=rtion tends to discover the ba:ic Rybczynsl*i
effect in a different way' The press tends i*
""tli*
that the develcpment of the expcrta*ie
natural regource causes the nation's {$tl*l}{}{
to rise in value on foreign exchangc r**rk*t't
because of the increased demand far li:e tc$?t"
iryt .uttunry as fareign buyers pay f*r ii: r*:'
pu,:rf,rt*u. A higher vaiue of the natio*'s cur'
ienry makes it harder for its indurlriai firn:si*
.o*p*t" against foreign products whose pr*'{e
is now relativeiy lowe*r. lo the manufactxr*'tag'
sector this feels like a drop irr demand' a** '€*e.
,*.io, .ontracts. The foreign exchang* r**rk#"
in gravitating back toward the origin*l bsi'Bt3{*
cf irade. is pioducing the same result w* s'r#i*s
get from a barter trade model: lf you eryryp
i'rore o* a good, You'll end uP either *;x$sq.€1
ing l*r, af
-another
good er impo*ir'g ry'
Sorietfring has to give so that tiade wril'rctilrff
to the same balance as before'
Even though the Dutch disease does lead
to some cleindustrialization. it is not clear that
this is really a national problem' Merely shifti ...
lnlernatl:na] Economics- 1 5th Edition 39i9,:
Chapter 13 Tr,rrie rrnd rlle Enr-rronncrrr :1Jrl
polluting process (e.g." foreign steel) or by taxing exports of products that generate
pollution when consumed 1e.g., gasoline),
The rest of the chapter takes up discussion of each of three fypes of sources of
externai costs noted in Figure 13.3. First rve look at issues when the external costs are
ones we impose on ourseives-domestic pollution and similar national eKternalities.
Then we analyze cases in which the activity of another country irnposes an external
cost on our corlntly-transborde| pollution and simriar cross-country externalities.
F'inally. we examine the challenges of global external costs-giobal pollution and
similar rvorldwide externalities.
f" iq'+ $ il Fa f'* i3 f,} * *;? H S"ni { F* g- L L* "g' f i; fu
Economic activities so;netimes produce significant arnounts of drtffiesti{: pollution
(or sin"riiar ent'ironmentai degradation). That is, the costs of the pollution f-all only (or
alnrost completely) on people within the country. If'there ure no policies that.fbrt:e
nurket rlecision-nwkers tts internalsa these external costs" then we reach two surpris-
ing conclusions about trade with domestic pollution. First,.free trude cun rechtce the
wetl-being of'the t:ountt1,: Second the countt"l' cat entl up exporting the wrutng prod-
ttr:fs: it exports products thatit shouid import, for insiance.
To see this. consider fhe case of an induslry whose production activify creates sub-
stantial pollution in the local rivers. lakes. and *{roundrvater. For instance" consider the
paper-rnaking industry in a country like Canada. It is very convenient lblpaper com-
panies to dutnp their chemical wastes into the local lakes, and the firms vi"ew this as a
fi'ee activifv iif the Canadian governrnent has no policy limiting this kind of pollution).
The Canadian companies are happy that the lakes are there, and the firms'operations
thrive, producing profits, good incornes fbr their workers. and good products for their'
custolrers at reasonable prices.
Othel Canadians have a different view olcorirse. Having the lakes 1lrn brcwn with
chemical \vaste spoils the scenery the srvimrning, the fishing" and other services that
tliey get frorn their lakes. The dumping of rvastes into the lakes imposes an external
cost on other users ofthe lakes.
The top haif of Figure 13.4 shou's the Canadian market for paper, with the dontes*
tic supply curve reflecting the private marginal cost ol production and ttre domestic
demand curve reflecting the private marginal benefits of paper consumption (which
are also the sccial ntarginal benefits if there are no external benefits). The bottom half
of'Figure 13.4 shows the additicnal costs imposed on the country by tire pollution
that results fi'otn producrion of paper in the country. We keep track of this legative
externality using the niarginal external costs (MEC) ol the pollution. (This ligure is
the analo-* of Figure 10.2, ...
ari-
sin
sin
(et.
rge
leir
)nal
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jing
om.
ter-
this
and
lhat
eto
)ay-
the
isa
and
cHAPTER 1 current Multinational challenges andthe Global Economy
U.S. Dollar-Denominated lnterest Rates
1-Month Maturities
U.S. Prime Rate 6 00%
Certificate of Deposit Rate 0 400%
LIBOR 0.260%
London lnterbank Offer Rate
London interbank rates apply to the buying
and'selling of eurodollar deposits between
banks in the international markets.
Notes:
Average rates for MaY 201 1.
U.S. Federal Funds target rale = o O"/"4 25"/"
Eurodollar DePosit
Offer Rate
I
) Eurodollar SPread
)
Eurodollar DePosll
Bid Bate
0.275%
o.255%rii*:.
ig'
t,
*
d!
iri
l:n
e
::
.
;l:
Eurodollar deposits are dollar-denominated
accounts in financial institutions oulside of
the united states.
rter-
dely
)riv-
For
)S AS
the
ein
:stic
Iese
sred
)ank
Ioan
/een
rket
isa
90n
that
ze is
rnks
Deposit rates are higher in the eulocurrency malkets than in most
domesti:c currency
markets because the finicial institutions offering eurocurrency activities are not subject
to
murry of the regulations and reserve requiremen-ts imposed on traditional
domestic banks
and banking activities. with these costs removed, raies are subject to mole competitive
pressures, d*eposit rates are higher, and loan rates are lower. A second majol area of
cost
avoided in the eurocurrency niarkets is the payment of deposit insurance
fees (such as the
Federal Deposit lnsurance" Corporation, FDIb, and assessments paid on deposits
in the
United States). Exhibit 1.3 illustrates how eurodollar deposit and loan rates'
including dollar
LIBOR and LIBID rates, compare with traditionai domestic interest rates'
The Theory of Comparative Aclvantage
The theory of comparative advantage provides a basis for explaining and
justifying interna-
tional trade in a model world assumed to enjoy free trade, perfect competition'
no uncer-
tainty, costless information, and no gou"rn*".ri interference' The theory's origins
lie in the
work of Adam Smith, anJ particutarly with his seminal book TheWealth
of Nations published
in 1776-Smith sought io explain why the division of labor in productive activities' and
subse-
quently international trade of those goods, increased the quality of life
for all citizens' Smith
based his work on ihe concept ol abiolute advantage,wheie every country
should specialize
in the production of that good it was uniquely suited for' More would be
produced for less'
10 PAfil" 1 Global Financial Environment
Thus. by each country specializing in products for which it possessed absolute ad,vantage,
countries could produce more in total and exchange products-trade-for goods that were
cheaper in price than those produced at home.
David Ricardo, in his work On the Principles of Politicat Econonzy anrl Taxotion pub-
lished in 18i7, sought to take the basic ideas set down by Adam Smith a ferv iogical steps
further. Ricardo noted that even if a country possessed absolu ...
82 lnternational Economics - Vol. 1Part One TAc Tlreorr of.docxevonnehoggarth79783
82 lnternational Economics - Vol. 1
Part One TAc Tlreorr of IntenvttintLlTi,ult
sector {the one using the country's scarce facior intensively;. The changes in prodr:c-
tion have one set of effects on incomes in the short run. but another in the long run.
Short-Run Effects of Opening Trade
In the *$:*rt't ru* laborers. plots of land. and other inputs are tied to their curreirt
lines of prodiiction. The denand for these t-actors, and therefore the incornes or
returns they earn, depend on the sector in which they are empioyed. Sorre peopie
rvill enjoy higirer demand tbr the factors thev have to offer, because their iactors are
employed in the sector that is atteinpting to expand its production. With the open-
nig to tree trade, the expanding industries in oLrr exarnple are u,heat in the tJnited
States anil cloth in the re st of the world. in the Uniled States landlords in rvheat-
grorving ateas can clrarge higher rents because thelr land is in strong derna*d. U.S.
iurn1**k.rs in wheat-glowrng areas are likelv to get (temporarily) irigher wages.
Foreign clothrvorkers cin also dernand and get higher wage rates. Foreign landlords
in thJ areas raising cotton atld u,ool ibr cloth-making can also get higher re*ts'
rlrLd'rntrii!. rlru rwllrrc vl fcrvrvr., t- th,c clcclir,ir,6 iutlu;tri'+t g.g. a!'31.11'.t'ot!.et'S'
U.S. landlords in areas supplS'ing the cloth-nraking industry, fbreign rvheat-area laitd-
lords and farnrhands- lose income through reduced clemand and therelbre reduced
prices fbr fheir services.
Fol the shorl run" tiierl. gains and losses divide by output secfor: All groups tied
to rising sectors gain, and all groups tied to declining sectoi's lose. One lvould expect
empiovers. landlolds. and workers in the declining sectors to uttite in protest.
The Long-Run Factor-Price Response
ln the i<,r*q r*-*n factors can move between sectors in respr'rnse to ditferences in
returns. Sellers of the same factor r.viil eventually respond to the inconle gaps that have
been openecl up in the short run, Sorne U.S. clothrl,orkers will fincl better-payingiobs
iu the wlieat sector. r\s the supply of labol into the nheat sector increases. lvages ilt
the rvheat sectol'decline. As the remaining supply af labor to the clolh sector shritrks,
wages in the cioth sector increase. Sorne U.S. cotion- and wool-raisirig land will also
get better rents by converting to lvheat-related producfion, bringing rents in rjilfbrent
areas back in 1ine. Similarlv, foreign farmhands and landlords r,vill flnd the pay better
in the cloth-relate<l sector. As the sr:pplies of the f'actors to the two sectors change in
the iong run. wages and rents iri the cioth sector decrease, and wages aud rcnts in tlte
lr,heat sector increase. The full process of the effects olopening trade on l'aclor prices
in the long run is summarized in Figure 5.1.
when the facto|s respond by rnoving to the better-paf ing scctors' will all n'ages arid
rents be bicl back to their pretrade levels'l No. .
This document summarizes the state of the U.S. ethanol industry in 2016. It discusses the industry's growth from producing 1 billion gallons annually to over 14 billion gallons currently. It highlights the resilience and strength of the industry, as well as its economic and environmental benefits. The document also outlines challenges facing the industry, including EPA policies that limit the amount of corn ethanol used and do not accurately reflect ethanol's emissions reductions. It concludes by emphasizing the need to grow demand through exports, higher octane fuels, and recognizing ethanol's carbon benefits.
ll1iit !c11mia I f,tf raitl1tiAnalysis of .docxSHIVA101531
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Analysis of a Tariff
ig$st economisrs far,or ietting nalions tr"ade freeiy', with few larifit or oiher barriers tc
trade. Indee{ economists have tended to ire even more critical of trade barriers than
har.e other€roups in society, even though economists have taken great care to lisi tlie
e.x*eptionai"cases in wilifli they feel trade liarriers caii be justified. Such agreernent
among eccnomists is rare. Why should ihey agree on this one issue l
. T'he srriking consensus in favor of free trade is based primarily on a body of eco-
nomic analysii cleffionstraiing that iheie are usually net gains fu'om fieer trade. both
f*r naiions alel lbr the world. Chaptel2 shorvec!- with detnand and suppil' ctrves. ihat
free trade brings greater aggregate well-being than no trade, The maill task of this
r, -.--... ^.. I rL . +'^rr.'.,.;r-,! ,.1-.--r,:r-c .r{'Ptrr It ic *n nn rlrnnrF lrrce-11Xflg p,lliCieS lVil}f aL lluptUl illlU tlltr ltlll\rWIlrg lildlitt't) ur I dr t rr IJ tu uvt'rP(trv ri!!
wide range offrade barriers. barriers that do not necessarily shut out all international
trade. It ii mainly on this more detailed analysis of trade policies lhat economists have
based their view ihat liee trade is generally better rhan parlial restrictjotts on ffade,
with a list of exceptions. This analysis makes it easier to understand what divides the
malonr-1'- of economists frcm grcups cailirig lbr resiricficfis oii f,"8de.
T'o see what is lost or gained try putr.ing up barriels to international trade. let us take
a close look at the eftects of the classic kind of trade barrier, a lariff on an imported
prodnct. This chapter spelis out $'ho is 1ike1y to gain and who is likely to lose {ion]
i tarift-, r"nil explains conditions *nder ..^:ltich a rtalion eouLl end up better ofT fronr a
tarifl Chapfers 9 through I I wiil exlend tlie basic slory lold here.
A ?*riff, as the terrn is used in intelnational trade. is a tax on importing a good
n! \{r!'\ ire irrtn n {-{rulltv. rrsrrallr' collctrtcd bv eustonls oflicials at the place of'etttrv.
'farills come in two main types. A sfi*{*f;{ Xari'ff is stipulated as a money fiIilounl
per unit oi iinpr:rt, such as clollars per ton of steei bars, or dollars per eigirlcylinrier
rw.o-door sporr,s car. A-n eq-i v***r-er:: (on the velue) t*nlff is a percentage of the esti-
mated market value of tire goods *'hen they reach the importing counfry. \Are will not
pav much attention to this distinction, because it nrakes alnrost no difl-erence ic our
conc,lusirrls.
-iariffrates ilave treen cleclining, but they'are stiii intportant. Indeed" only one coun-
rry in the r.','orl4 Singapore, has na tariff.q. {ln adclition, two aufonomolls custoffis arsas,
l-{ong Kong and Macau, harre no tarilli}.
Iior th* ililustrialized eoLlntries. averagr tariff rales in the 1930s were about 60
p*r'ceni. in the aJtennath r:f the infarnous Smoot-Ffawley tarifli lhat fhe United States
enacie{ in 1930 and the i ...
librarians. Government purchases averaged a bit lessthan o.docxSHIVA101531
librarians. Government purchases averaged a bit less
than one-fifih of U.S. GDP during the last decade'
r Government purchases, and therefore GDP' exclude
transfer payments' such as Social Securily' welfare
benefits, and unemployment insurance' Such pay-
ments are not true purchases by the government or
true earnings bY the reciPients'
The final spending component, net exports'
reflects international trade in goods and services'
Goods, oT merchandise traded, include physical items
such as bananas and DVD players (stuffyou can put
in a box). Services, or so-
cal1ed inuisibles, include
intangible items, such
as European tours and
online customer service
from India. Foreign Pur-
chases of U.S. goods and
services are counted as
part of U.S. GDP. But U.S.
purchases of foreign
goods and services are
subtracted from U'S. GDP.
lrli:t expoli.$ equal the
value of U.S. exPorts of
rl*f :'ihe ldntlct':i
by resource suppliers in the economy' Thus' we can
say that
Aggregate expenditure : GDP : Aggregate income
A prod.uct usually goes through several stages
involving different firms on its way to the consumer'
a woodJn desk, for example, starts as raw timber'
which is typically cut by one firm, milied by another'
made into a aest< by a third, and retailed by a fourth'
We avoid double counting either by including only
the market value of the desk when it is sold to the
ffiffiF Se*cd #ffi t$?c
6ms*swe &PPr*ateh
The expenditure aPProach
sums, or aggregates, sPending
on production. The income
approach sums, or aggregates'
income arising from that Pro-
duction. Again, double-entry
bookkeeping ensures that
the value of aggregate outPut
equals the aggregate income
paid for resources used to Pro-
duce that output: the wages,
interest, rent, and Profit aris-
ing from Production.The Price
of a HersheY bar reflects the
income earned bY resource
suppliers along the way'
Aggregait int';t:'le equals the
sum of all the income earned
GDP based on the income approach' For example' sup-
pose you buy a wooden desk for $zoo' This final mar-
let vatue gets added directly into GDP' Consider the
history of it,at desk. Suppose the treethal-gave its life
for your studies was cut into a iog and sold to a miller
for
-$zo,
who converted the log to lumber that sold for
$5o to a desk maker, who made the desk and
sold it
for $rzo to a retailer, who sold it to you for $zoo'
Column (I) of Exhibit r lists the selling price at
each stage of production' If all these transactions
were add-*ed .,p, ttt" total of $39o wouid exceed the
$zoo market value of the desk' To avoid double
count-
ing, we inciude oniy the value added at each stage'
lisied in column (3) as the difference between the
pur-
ch"r" pric" ana ihe seliing price at that stage' Again'
:r,;.1:'i,ri I
Computation of Value Added lor a New Desk
fina1 user ot bY summmg
the value added at each
stage of Production. The
vaiue added bY each fi,rm
equals that firm's seliing
price minus Payments
for i ...
Panel (b) of Exhibit 8 shows the distribution andefflcienc.docxalfred4lewis58146
Panel (b) of Exhibit 8 shows the distribution and
efflciency eifects of the quota'As a result of.the
quota'
U.5. consumer surplus declines by the combined
biue
and pink areas. Area a becomes producer surplus
and
thus invoives no loss of U.S' welfare' Area c shows
the
increased economic profit to those permitted by the-q,ro,u
,o sell Americins 3o miliion pounds for $o'r5
pu, pouna, or $o.o5 above the world price' If foreign
"*por,"r,
rather than U.S. importers reap this profit'
area c reflects a net loss in U'S' welfare'
Areab shows a welfare loss to the U'S' economy'
because sugar could have been purchased abroad
for
io.ro p"t iorrnd, and the U'S' resources employed
to increase sugar production could have been used
more efficientt-y proaucing other goods' Area d is
also a welfare loss because it reflects a reduction in
consumer surplus with no offsetting gain to anyone'
Thus, areas b and d in panei (b) of Exhibit 8 measure
the minimum U.S' welfare loss from the quota' If the
frofit from quota dghts (area c) accrues-to
foreign
prodrr.err, this increases the U'S' welfare loss'
Quotas *m Practsee
The United States has granted quotas to specific
countries. These countries, in turn' distribute these
q"o," tignO to their exporters tfrro.uSh a variety of
i-,u"r,t. iy rew ar ding domestic and foreign producers with
higher prices, the quota system creotes two -groups
inlent
oi rrriring and'perpetuating these quotas' Lobbyists for
foreign producers work the halls of Congress'
seeking
tf,e rlghl to export to the United States' This strong
r"pp"t, from pioducers, coupled with a lack ofoppo-
sition from consumers (who remain rationally
igno-
rant for the most part), has resulted in quotas that
have lasted decades. For example, sugar
quotas have
been around more than 50 years' In January
zoog' the
world price of sugar was about $o'rz a pound' but
U.S. businesses that need sugar to make
products'
su.h u, candy, paid more than $o'zo a pound' costing
consumers an extra $z billion annualiy' Sugar grow-
"rr,
*ho account for only r percent of-U,S' farm sales'
have accounted for r7 percent of political contribu-
tions from agriculture since r99o'1
Some economists have argued that if quotas are
to be used, the United States should auction
them off
to foreign producers, thereby capturing at
}east some
of the dlfference between the world price
and the U'S'
pri.". A.t.tioning off quotas would not only increase
federai revenue Uut would reduce the
profitability of
qrro,"r, which would reduce pressure on
V/ashington
i'.'fvfoLurf Schroeder, "Sugar Growers Hold Up
Push for Free Trade"'
Wall Street Journal 3 February 2004'
266 PART 4 Ilrl"rr'ariurlrr \l.) :oL cr't0 rt'cs
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#
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to perpetuate them' Anencar "li:;n:eis
are li::
,f-t" o"iy victims of sugar quolas' lbousands oi ?:::
farmeri around the world miss oui on an oppor:'--
nity to earn a living growing sugarcane for export.
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m o nt hlyre vie w.o rg httpm o nthlyreview.o rg20111101.docxSHIVA101531
m o nt hlyre vie w.o rg http://m o nthlyreview.o rg/2011/11/01/the- glo bal- res erve- arm y- o f- labo r- and- the- new- im perialis m
J o hn Bellam y Fo s ter , Ro bert W. McChes ney and R. J am il J o nna m o re o n Eco no m ics , Glo bal Eco no m ic Cris is , Labo r
The Global Reserve Army of Labor and the New Imperialism ::
Monthly Review
Jo hn Bellamy Fo ster (jf o [email protected] nthlyreview.o rg) is edito r o f Monthly Review and pro f esso r o f so cio lo gy at
the University o f Orego n. Ro bert W. McChesney ([email protected]) is Gutgsell Endo wed Pro f esso r o f
Co mmunicatio ns at the University o f Illino is at Urbana- Champaign. R. Jamil Jo nna is a Ph.D. candidate in
so cio lo gy at the University o f Orego n.
In the last f ew decades there has been an eno rmo us shif t in the capitalist eco no my in the directio n o f the
glo balizatio n o f pro ductio n. Much o f the increase in manuf acturing and even services pro ductio n that wo uld
have f o rmerly taken place in the glo bal No rth—as well as a po rtio n o f the No rth’s preexisting pro ductio n—is
no w being o f f sho red to the glo bal So uth, where it is f eeding the rapid industrializatio n o f a handf ul o f
emerging eco no mies. It is custo mary to see this shif t as arising f ro m the eco no mic crisis o f 1974– 75 and the
rise o f neo liberalism—o r as erupting in the 1980s and af ter, with the huge increase in the glo bal capitalist labo r
f o rce resulting f ro m the integratio n o f Eastern Euro pe and China into the wo rld eco no my. Yet, the f o undatio ns
o f pro ductio n o n a glo bal scale, we will argue, were laid in the 1950s and 1960s, and were already depicted in
the wo rk o f Stephen Hymer, the f o remo st theo rist o f the multinatio nal co rpo ratio n, who died in 1974.
Fo r Hymer multinatio nal co rpo ratio ns evo lved o ut o f the mo no po listic (o r o ligo po listic) structure o f mo dern
industry in which the typical f irm was a giant co rpo ratio n co ntro lling a substantial share o f a given market o r
industry. At a certain po int in their develo pment (and in the develo pment o f the system) these giant
co rpo ratio ns, headquartered in the rich eco no mies, expanded abro ad, seeking mo no po listic advantages—as
well as easier access to raw materials and lo cal markets—thro ugh o wnership and co ntro l o f f o reign
subsidiaries. Such f irms internalized within their o wn structure o f co rpo rate planning the internatio nal divisio n
o f labo r f o r their pro ducts. “Multinatio nal co rpo ratio ns,” Hymer o bserved, “are a substitute f o r the market as a
metho d o f o rganizing internatio nal exchange.” T hey led inexo rably to the internatio nalizatio n o f pro ductio n and
the f o rmatio n o f a system o f “internatio nal o ligo po ly” that wo uld increasingly do minate the wo rld eco no my.1
In his last article, “Internatio nal Po litics and Internatio nal Eco no mics: A Radical Appro ach, ...
This document discusses trends in the natural gas market and regulatory approaches. It addresses questions around how to classify and regulate different parts of the natural gas value chain. The document also examines dynamics in global natural gas systems and the challenges around achieving competitive natural gas supply and balancing market forces of supply and demand. Case studies on the US natural gas market are provided around topics like price volatility, resource development, demand patterns, and the impact of deregulation.
This document discusses trends in the natural gas market and regulatory approaches. It addresses questions around how to classify and regulate different parts of the natural gas value chain. The document also examines market dynamics and challenges around achieving competitive natural gas supply in production, pipelines, and power. Key trends discussed include natural gas price volatility in the U.S., increasing supply from new resource plays, and shifting demand patterns across residential, commercial, industrial and power sectors.
This document provides an outline and introduction to chapters 7 and 8 on economies of scale and international trade. It discusses external economies of scale which occur when costs depend on industry size, and internal economies which occur from large firm size. Trade based on external economies can concentrate an industry in one location. Monopolistic competition with product differentiation and internal economies can drive intra-industry trade between similar countries. The Grubel-Lloyd index measures the extent of intra-industry trade between two trading partners.
This document summarizes research on the impact of contract growing on tobacco farmers in Ilocos, Philippines. The researchers surveyed over 300 farmers to test several hypotheses. The results showed that farmers participating in supply chains had higher average net incomes per hectare than non-participating farmers. However, participation was not strongly related to farmer characteristics or farm size. Infrastructure quality was also found to be unrelated to participation. Cash price was the second most important factor for farmers after working capital advances. The study used regression analysis to further analyze the relationship between participation and net income while controlling for other variables.
6. price squeezes with positive margins in eu competition law. economic and ...Matias González Muñoz
This document summarizes and critiques the positive margin squeeze theory established in the TeliaSonera case law. It argues the theory is flawed on both economic and legal grounds. Through a numerical bakery example, it shows that any wholesale input price above marginal cost but allowing the competitor a positive margin cannot yield exclusionary effects, as the competitor can remain profitable, save profits, and eventually invest to become vertically integrated. It concludes the sole rationale for intervening in such cases is that the input price makes the competitor's life comparatively more difficult, but any price will have this effect, so the input price is causally irrelevant. The positive margin squeeze theory is an economic and legal "zombie" that can be disregarded.
1. Cap-and-trade programs establish a limit or "cap" on greenhouse gas emissions. Polluting firms are issued permits allowing them to emit a certain amount of gases. Firms can trade permits, creating a market price for emissions. Over time, the cap is reduced, lowering total emissions.
2. A carbon tax sets a price per ton of greenhouse gases emitted. This makes polluters pay for external costs of emissions and incentivizes reducing emissions to cut tax costs. The tax increases production costs, lowering output.
3. Command-and-control regulation uses rules like quotas, bans, and subsidies to directly control pollution. However, it involves high monitoring and enforcement costs and may favor producers over consumers
1. The document discusses market structures, specifically monopoly, including monopoly assumptions, barriers to entry, production decisions, and profit maximization.
2. A monopoly faces the entire market demand curve and can set price above marginal cost to earn profits in both the short- and long-run.
3. While monopolies may lead to economic inefficiency through deadweight loss, a price-discriminating monopoly can help reduce this loss by segmenting customers and charging different prices.
The document discusses market failure, its causes and consequences. It identifies several causes of market failure including incomplete markets, indivisibilities, common property resources, imperfect markets, asymmetric information, externalities, public goods, and public bads. The consequences of market failure are an inefficient allocation of resources and a failure to achieve social goals like equitable income distribution and price stability. Market failure occurs when the free market produces outcomes that are less than optimal from an economic perspective.
This summarizes an economics test bank with multiple choice questions covering topics like aging populations and public finances, bank robbery deterrents, marginal costs, market definitions, supply and demand curves, tradeoffs, property rights, and price elasticity. The questions assess understanding of key economic concepts and how various policies and market changes impact equilibrium prices and quantities.
This document discusses several key aspects of globalization, including:
1. Major retailers like Carrefour, Tesco, and Walmart began global expansion in search of economies of scale but found difficulties establishing common retail models across countries due to differences in tastes, costs, and supply chains.
2. Globalization is driven by declining trade barriers and investment restrictions as well as advances in transportation and telecommunications that have shrunk perceived distances between countries.
3. While globalization increases revenue opportunities and can reduce costs, managing an international business presents unique challenges like dealing with differences between countries and ensuring global plans can be successfully executed.
This document contains an examination paper for a Managerial Economics course. The paper has two sections - Section A consists of multiple choice and short answer questions worth 30 marks. Section B contains two case studies worth 20 marks each for a total of 40 marks. The first case discusses the potential economic benefits of legalizing marijuana in Canada, including potential tax revenue from taxing marijuana. The second case discusses the importance of balancing growth and productivity improvements for companies. It provides examples of companies that have successfully grown while also cutting costs.
This document contains an examination paper for Managerial Economics. It consists of three sections: Section A with objective type multiple choice and short answer questions worth 30 marks; Section B with two case studies worth 40 marks total requiring analysis and short answers; and Section C with two applied theory questions worth 15 marks each requiring longer 200-250 word answers. The paper examines topics related to demand, costs, market structures, national income, and decision making tools like decision trees. It provides sample questions to test understanding of key economic concepts relevant for business management.
This document contains an examination paper for Managerial Economics. It is divided into three sections: Section A contains 30 multiple choice and short answer questions; Section B contains two case studies with multiple questions each worth 20 marks; Section C contains two long answer theory questions worth 15 marks each. The paper tests concepts related to microeconomics, demand and costs, market structures, national income, and business decision making tools like decision trees.
Total operates in the global oil and gas business environment, facing challenges in exploration and exploitation activities. Exploration requires dealing with physical geology, geopolitical factors, and unstable political conditions in some countries like Bolivia, Libya, and Burma that have impacted Total's operations. Exploitation requires advanced offshore drilling technologies as oil reserves are in deeper waters, with Total developing fields in deep sea areas of Angola, Nigeria, and other regions. Maintaining technological capabilities is crucial for Total to remain competitive in accessing new reserves as traditional oil becomes harder to find and produce.
international trade and balance of payments for 2nd semester economics for BBAginish9841502661
This document discusses international trade and the gains from trade according to comparative advantage theory. It provides evidence that countries who liberalized trade grew faster than those who did not. While comparative advantage theory predicts patterns of trade well, it oversimplifies specialization and does not account for differences in resources or economies of scale between countries. The model also ignores potential negative impacts of trade like income distribution effects.
This document discusses international trade and balance of payments. It provides arguments for and against trade liberalization. Supporters argue that trade increases specialization and economies of scale, bringing innovation and competition. Studies show countries that liberalized trade grew faster. However, critics argue that trade can displace domestic workers and increase inequality. The document also examines the Ricardian model of comparative advantage and its limitations in making unrealistic predictions. It defines key concepts like terms of trade, protectionism, and balance of payments accounting.
Exploring Online Consumer Behaviors
John A. Smith and Jane L. Doe
Liberty University
References
Janda, S. (2008). Does gender moderate the effect of online concerns on purchase likelihood? Journal of Internet Commerce, 7(3), 339-358. doi:10.1080/15332860802250401
Jeon, S., Crutsinger, C., & Kim, H. (2008). Exploring online auction behaviors and motivations. Journal of Family and Consumer Sciences, 100(2), 31-40. Retrieved by http://search.proquest.com.ezproxy.liberty.edu:2048/docview/218160218
Koyuncu, C., & Lien, D. (2003). E-commerce and consumer's purchasing behaviour. Applied Economics, 35(6), 721. Retrieved from http://go.galegroup.com.ezproxy.liberty.edu:2048/ps/i.do?id=GALE%7CA102272684&v=2.1&u=vic_liberty&it=r&p=AONE&sw=w
Kukar-Kinney,M.,Monroe, K.B.,Ridgway,N.M. (2008). The relationship between consumers’ tendencies to buy compulsively and their motivations to shop and buy on the internet. Journal of Retailing: Consumer Behavior and Retailing, 85(3), 298-307. Retrieved from http://dx.doi.org. ezproxy.liberty.edu: 2048/10.1016/j.jretai.2009.05.002
Stibel, J. (2005). Mental models and online consumer behaviour. Behaviour & Information Technology, 24(2), 147-150. doi:10.1080/01449290512331321901
Vazquez,D., & Xu,X.(2009). Investigation linkages between online purchase behavior variables. International Journal of Retail & Distribution Management, 37(5), 408-419. doi:10.1108/09590550910954900
Abstract Comment by user: Double space between all lines of the manuscript. This includes the elimination of any extra spacing before or after the paragraph (APA Manual 5.03). The default setting in Microsoft Word is to add extra spacing after paragraphs. You can change this setting under the page layout tab in Microsoft Word.
Internet usage has skyrocketed in the past few decades, along with this increase comes the increase in internet shopping by consumers. This research examines the behaviors, motivations, and attitudes of this new form of consumer entity. Online consumer behavior has been studied for over 20 years and will undoubtedly be the source of many future researches as internet consumerism expands. This paper will examine the following research questions: (1) How do factors previously researched affect the online purchasing behavior of consumers and (2) what are the significant consumer behaviors both positive and negative that affect internet consumerism? By identifying these factors and variables, new strategies can be formulated and both consumer and supplier can gain knowledge and understanding of behaviors which exist. The purpose of this research paper is to integrate the varied research information together and draw coherent linkages to how consumer thoughts, attitudes and motivational behavior affect online buying, thus building a broader framework of analysis in which to build upon. Comment by user:
APA style uses one inch margins. Paragraphs should be indented five to seven spaces (about 1/2 inch ...
External and Internal Analysis 8Extern.docxgitagrimston
External and Internal Analysis 8
External and Internal Environmental Analysis
STR/581
Professor Alfonso Rodriguez
July 30, 2014
Sheila Medina
Introduction
Coffee has become an integral part of the lives of numerous people. In 1971, Starbucks coffee opened its first coffee shop in the Pike Place Market in Seattle, Washington. Now, according to research “Starbucks Corporation is the leading retailer, roaster and brand of specialty coffee in the world, with more than 6,000 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim” (www.investor.starbucks.com). Starbucks aims to be the consumer’s favorite coffee shop and to achieve this the company focused on customer satisfaction as well as company advancement. Therefore, it is important to act based on what is written in Starbucks mission, value and vision statement, “To inspire and nurture the human spirit-one person, one cup, and one neighborhood at a time” (www.starbucks.com).
A review of Starbucks financial reports has identified an increase in revenue over the past few years. However, this increase in revenue doesn’t account for the increase in profits. The profit increase is not as high as it could be due to external factors such as other coffee shops and the increase in amount of competition. This report aims to identify the different internal and external environment factors attributing to the changes in Starbucks external environment by utilizing several different analyses.
SWOT Analysis
Strengths
Starbucks possesses several main strengths including their high visibility being located in high traffic areas, quality of service and products and their established brand loyalty. Starbucks remains an established leader being the number one known coffee house in the world while possessing a competent workforce, providing quality service, and continuing financial soundness. They also are known for their strong internal and external relationships with their suppliers.
Weakness
Weaknesses that Starbucks must address include: Product affordability and pricing, coffee beans price is the major influence over the firms profits, maintaining the positive public opinion of their products, avoiding any negative publicity, and remaining connected to their customers. Starbucks must also consider the fact they have expanded domestically and internationally resulting in saturation of the markets. They are also a non-smoking facility alienating some customers from purchasing coffee or other products from their store.
Opportunities
Opportunities include the ability for Starbucks to enter into different and new markets,
partnership opportunities with businesses, growing acceptance and customer satisfaction, and increase different product offerings. Starbucks must strive to continue expanding their products and food service to remain competitive and reach other consumers. Another option would be for Starbucks to allow consumers to order t ...
More Related Content
Similar to eu),... ,-SituatinFirst-best worldDistorti.docx
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m o nt hlyre vie w.o rg httpm o nthlyreview.o rg20111101.docxSHIVA101531
m o nt hlyre vie w.o rg http://m o nthlyreview.o rg/2011/11/01/the- glo bal- res erve- arm y- o f- labo r- and- the- new- im perialis m
J o hn Bellam y Fo s ter , Ro bert W. McChes ney and R. J am il J o nna m o re o n Eco no m ics , Glo bal Eco no m ic Cris is , Labo r
The Global Reserve Army of Labor and the New Imperialism ::
Monthly Review
Jo hn Bellamy Fo ster (jf o [email protected] nthlyreview.o rg) is edito r o f Monthly Review and pro f esso r o f so cio lo gy at
the University o f Orego n. Ro bert W. McChesney ([email protected]) is Gutgsell Endo wed Pro f esso r o f
Co mmunicatio ns at the University o f Illino is at Urbana- Champaign. R. Jamil Jo nna is a Ph.D. candidate in
so cio lo gy at the University o f Orego n.
In the last f ew decades there has been an eno rmo us shif t in the capitalist eco no my in the directio n o f the
glo balizatio n o f pro ductio n. Much o f the increase in manuf acturing and even services pro ductio n that wo uld
have f o rmerly taken place in the glo bal No rth—as well as a po rtio n o f the No rth’s preexisting pro ductio n—is
no w being o f f sho red to the glo bal So uth, where it is f eeding the rapid industrializatio n o f a handf ul o f
emerging eco no mies. It is custo mary to see this shif t as arising f ro m the eco no mic crisis o f 1974– 75 and the
rise o f neo liberalism—o r as erupting in the 1980s and af ter, with the huge increase in the glo bal capitalist labo r
f o rce resulting f ro m the integratio n o f Eastern Euro pe and China into the wo rld eco no my. Yet, the f o undatio ns
o f pro ductio n o n a glo bal scale, we will argue, were laid in the 1950s and 1960s, and were already depicted in
the wo rk o f Stephen Hymer, the f o remo st theo rist o f the multinatio nal co rpo ratio n, who died in 1974.
Fo r Hymer multinatio nal co rpo ratio ns evo lved o ut o f the mo no po listic (o r o ligo po listic) structure o f mo dern
industry in which the typical f irm was a giant co rpo ratio n co ntro lling a substantial share o f a given market o r
industry. At a certain po int in their develo pment (and in the develo pment o f the system) these giant
co rpo ratio ns, headquartered in the rich eco no mies, expanded abro ad, seeking mo no po listic advantages—as
well as easier access to raw materials and lo cal markets—thro ugh o wnership and co ntro l o f f o reign
subsidiaries. Such f irms internalized within their o wn structure o f co rpo rate planning the internatio nal divisio n
o f labo r f o r their pro ducts. “Multinatio nal co rpo ratio ns,” Hymer o bserved, “are a substitute f o r the market as a
metho d o f o rganizing internatio nal exchange.” T hey led inexo rably to the internatio nalizatio n o f pro ductio n and
the f o rmatio n o f a system o f “internatio nal o ligo po ly” that wo uld increasingly do minate the wo rld eco no my.1
In his last article, “Internatio nal Po litics and Internatio nal Eco no mics: A Radical Appro ach, ...
This document discusses trends in the natural gas market and regulatory approaches. It addresses questions around how to classify and regulate different parts of the natural gas value chain. The document also examines dynamics in global natural gas systems and the challenges around achieving competitive natural gas supply and balancing market forces of supply and demand. Case studies on the US natural gas market are provided around topics like price volatility, resource development, demand patterns, and the impact of deregulation.
This document discusses trends in the natural gas market and regulatory approaches. It addresses questions around how to classify and regulate different parts of the natural gas value chain. The document also examines market dynamics and challenges around achieving competitive natural gas supply in production, pipelines, and power. Key trends discussed include natural gas price volatility in the U.S., increasing supply from new resource plays, and shifting demand patterns across residential, commercial, industrial and power sectors.
This document provides an outline and introduction to chapters 7 and 8 on economies of scale and international trade. It discusses external economies of scale which occur when costs depend on industry size, and internal economies which occur from large firm size. Trade based on external economies can concentrate an industry in one location. Monopolistic competition with product differentiation and internal economies can drive intra-industry trade between similar countries. The Grubel-Lloyd index measures the extent of intra-industry trade between two trading partners.
This document summarizes research on the impact of contract growing on tobacco farmers in Ilocos, Philippines. The researchers surveyed over 300 farmers to test several hypotheses. The results showed that farmers participating in supply chains had higher average net incomes per hectare than non-participating farmers. However, participation was not strongly related to farmer characteristics or farm size. Infrastructure quality was also found to be unrelated to participation. Cash price was the second most important factor for farmers after working capital advances. The study used regression analysis to further analyze the relationship between participation and net income while controlling for other variables.
6. price squeezes with positive margins in eu competition law. economic and ...Matias González Muñoz
This document summarizes and critiques the positive margin squeeze theory established in the TeliaSonera case law. It argues the theory is flawed on both economic and legal grounds. Through a numerical bakery example, it shows that any wholesale input price above marginal cost but allowing the competitor a positive margin cannot yield exclusionary effects, as the competitor can remain profitable, save profits, and eventually invest to become vertically integrated. It concludes the sole rationale for intervening in such cases is that the input price makes the competitor's life comparatively more difficult, but any price will have this effect, so the input price is causally irrelevant. The positive margin squeeze theory is an economic and legal "zombie" that can be disregarded.
1. Cap-and-trade programs establish a limit or "cap" on greenhouse gas emissions. Polluting firms are issued permits allowing them to emit a certain amount of gases. Firms can trade permits, creating a market price for emissions. Over time, the cap is reduced, lowering total emissions.
2. A carbon tax sets a price per ton of greenhouse gases emitted. This makes polluters pay for external costs of emissions and incentivizes reducing emissions to cut tax costs. The tax increases production costs, lowering output.
3. Command-and-control regulation uses rules like quotas, bans, and subsidies to directly control pollution. However, it involves high monitoring and enforcement costs and may favor producers over consumers
1. The document discusses market structures, specifically monopoly, including monopoly assumptions, barriers to entry, production decisions, and profit maximization.
2. A monopoly faces the entire market demand curve and can set price above marginal cost to earn profits in both the short- and long-run.
3. While monopolies may lead to economic inefficiency through deadweight loss, a price-discriminating monopoly can help reduce this loss by segmenting customers and charging different prices.
The document discusses market failure, its causes and consequences. It identifies several causes of market failure including incomplete markets, indivisibilities, common property resources, imperfect markets, asymmetric information, externalities, public goods, and public bads. The consequences of market failure are an inefficient allocation of resources and a failure to achieve social goals like equitable income distribution and price stability. Market failure occurs when the free market produces outcomes that are less than optimal from an economic perspective.
This summarizes an economics test bank with multiple choice questions covering topics like aging populations and public finances, bank robbery deterrents, marginal costs, market definitions, supply and demand curves, tradeoffs, property rights, and price elasticity. The questions assess understanding of key economic concepts and how various policies and market changes impact equilibrium prices and quantities.
This document discusses several key aspects of globalization, including:
1. Major retailers like Carrefour, Tesco, and Walmart began global expansion in search of economies of scale but found difficulties establishing common retail models across countries due to differences in tastes, costs, and supply chains.
2. Globalization is driven by declining trade barriers and investment restrictions as well as advances in transportation and telecommunications that have shrunk perceived distances between countries.
3. While globalization increases revenue opportunities and can reduce costs, managing an international business presents unique challenges like dealing with differences between countries and ensuring global plans can be successfully executed.
This document contains an examination paper for a Managerial Economics course. The paper has two sections - Section A consists of multiple choice and short answer questions worth 30 marks. Section B contains two case studies worth 20 marks each for a total of 40 marks. The first case discusses the potential economic benefits of legalizing marijuana in Canada, including potential tax revenue from taxing marijuana. The second case discusses the importance of balancing growth and productivity improvements for companies. It provides examples of companies that have successfully grown while also cutting costs.
This document contains an examination paper for Managerial Economics. It consists of three sections: Section A with objective type multiple choice and short answer questions worth 30 marks; Section B with two case studies worth 40 marks total requiring analysis and short answers; and Section C with two applied theory questions worth 15 marks each requiring longer 200-250 word answers. The paper examines topics related to demand, costs, market structures, national income, and decision making tools like decision trees. It provides sample questions to test understanding of key economic concepts relevant for business management.
This document contains an examination paper for Managerial Economics. It is divided into three sections: Section A contains 30 multiple choice and short answer questions; Section B contains two case studies with multiple questions each worth 20 marks; Section C contains two long answer theory questions worth 15 marks each. The paper tests concepts related to microeconomics, demand and costs, market structures, national income, and business decision making tools like decision trees.
Total operates in the global oil and gas business environment, facing challenges in exploration and exploitation activities. Exploration requires dealing with physical geology, geopolitical factors, and unstable political conditions in some countries like Bolivia, Libya, and Burma that have impacted Total's operations. Exploitation requires advanced offshore drilling technologies as oil reserves are in deeper waters, with Total developing fields in deep sea areas of Angola, Nigeria, and other regions. Maintaining technological capabilities is crucial for Total to remain competitive in accessing new reserves as traditional oil becomes harder to find and produce.
international trade and balance of payments for 2nd semester economics for BBAginish9841502661
This document discusses international trade and the gains from trade according to comparative advantage theory. It provides evidence that countries who liberalized trade grew faster than those who did not. While comparative advantage theory predicts patterns of trade well, it oversimplifies specialization and does not account for differences in resources or economies of scale between countries. The model also ignores potential negative impacts of trade like income distribution effects.
This document discusses international trade and balance of payments. It provides arguments for and against trade liberalization. Supporters argue that trade increases specialization and economies of scale, bringing innovation and competition. Studies show countries that liberalized trade grew faster. However, critics argue that trade can displace domestic workers and increase inequality. The document also examines the Ricardian model of comparative advantage and its limitations in making unrealistic predictions. It defines key concepts like terms of trade, protectionism, and balance of payments accounting.
Similar to eu),... ,-SituatinFirst-best worldDistorti.docx (19)
Exploring Online Consumer Behaviors
John A. Smith and Jane L. Doe
Liberty University
References
Janda, S. (2008). Does gender moderate the effect of online concerns on purchase likelihood? Journal of Internet Commerce, 7(3), 339-358. doi:10.1080/15332860802250401
Jeon, S., Crutsinger, C., & Kim, H. (2008). Exploring online auction behaviors and motivations. Journal of Family and Consumer Sciences, 100(2), 31-40. Retrieved by http://search.proquest.com.ezproxy.liberty.edu:2048/docview/218160218
Koyuncu, C., & Lien, D. (2003). E-commerce and consumer's purchasing behaviour. Applied Economics, 35(6), 721. Retrieved from http://go.galegroup.com.ezproxy.liberty.edu:2048/ps/i.do?id=GALE%7CA102272684&v=2.1&u=vic_liberty&it=r&p=AONE&sw=w
Kukar-Kinney,M.,Monroe, K.B.,Ridgway,N.M. (2008). The relationship between consumers’ tendencies to buy compulsively and their motivations to shop and buy on the internet. Journal of Retailing: Consumer Behavior and Retailing, 85(3), 298-307. Retrieved from http://dx.doi.org. ezproxy.liberty.edu: 2048/10.1016/j.jretai.2009.05.002
Stibel, J. (2005). Mental models and online consumer behaviour. Behaviour & Information Technology, 24(2), 147-150. doi:10.1080/01449290512331321901
Vazquez,D., & Xu,X.(2009). Investigation linkages between online purchase behavior variables. International Journal of Retail & Distribution Management, 37(5), 408-419. doi:10.1108/09590550910954900
Abstract Comment by user: Double space between all lines of the manuscript. This includes the elimination of any extra spacing before or after the paragraph (APA Manual 5.03). The default setting in Microsoft Word is to add extra spacing after paragraphs. You can change this setting under the page layout tab in Microsoft Word.
Internet usage has skyrocketed in the past few decades, along with this increase comes the increase in internet shopping by consumers. This research examines the behaviors, motivations, and attitudes of this new form of consumer entity. Online consumer behavior has been studied for over 20 years and will undoubtedly be the source of many future researches as internet consumerism expands. This paper will examine the following research questions: (1) How do factors previously researched affect the online purchasing behavior of consumers and (2) what are the significant consumer behaviors both positive and negative that affect internet consumerism? By identifying these factors and variables, new strategies can be formulated and both consumer and supplier can gain knowledge and understanding of behaviors which exist. The purpose of this research paper is to integrate the varied research information together and draw coherent linkages to how consumer thoughts, attitudes and motivational behavior affect online buying, thus building a broader framework of analysis in which to build upon. Comment by user:
APA style uses one inch margins. Paragraphs should be indented five to seven spaces (about 1/2 inch ...
External and Internal Analysis 8Extern.docxgitagrimston
External and Internal Analysis 8
External and Internal Environmental Analysis
STR/581
Professor Alfonso Rodriguez
July 30, 2014
Sheila Medina
Introduction
Coffee has become an integral part of the lives of numerous people. In 1971, Starbucks coffee opened its first coffee shop in the Pike Place Market in Seattle, Washington. Now, according to research “Starbucks Corporation is the leading retailer, roaster and brand of specialty coffee in the world, with more than 6,000 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim” (www.investor.starbucks.com). Starbucks aims to be the consumer’s favorite coffee shop and to achieve this the company focused on customer satisfaction as well as company advancement. Therefore, it is important to act based on what is written in Starbucks mission, value and vision statement, “To inspire and nurture the human spirit-one person, one cup, and one neighborhood at a time” (www.starbucks.com).
A review of Starbucks financial reports has identified an increase in revenue over the past few years. However, this increase in revenue doesn’t account for the increase in profits. The profit increase is not as high as it could be due to external factors such as other coffee shops and the increase in amount of competition. This report aims to identify the different internal and external environment factors attributing to the changes in Starbucks external environment by utilizing several different analyses.
SWOT Analysis
Strengths
Starbucks possesses several main strengths including their high visibility being located in high traffic areas, quality of service and products and their established brand loyalty. Starbucks remains an established leader being the number one known coffee house in the world while possessing a competent workforce, providing quality service, and continuing financial soundness. They also are known for their strong internal and external relationships with their suppliers.
Weakness
Weaknesses that Starbucks must address include: Product affordability and pricing, coffee beans price is the major influence over the firms profits, maintaining the positive public opinion of their products, avoiding any negative publicity, and remaining connected to their customers. Starbucks must also consider the fact they have expanded domestically and internationally resulting in saturation of the markets. They are also a non-smoking facility alienating some customers from purchasing coffee or other products from their store.
Opportunities
Opportunities include the ability for Starbucks to enter into different and new markets,
partnership opportunities with businesses, growing acceptance and customer satisfaction, and increase different product offerings. Starbucks must strive to continue expanding their products and food service to remain competitive and reach other consumers. Another option would be for Starbucks to allow consumers to order t ...
Exploring Music Concert Paper Guidelines Instructions.docxgitagrimston
Exploring Music
Concert Paper Guidelines
Instructions
1) Choose. Pick a classical music concert from the list provided on Blackboard. Sign up and buy tickets.
2) Research. Using reputable sources, learn about the composers and music featured at the concert. I
recommend searching Google for program notes from major orchestras.
3) Write. Write a typed, double-spaced, 2 -3 page research paper, including properly formatted citations
using APA, MLA, or Chicago style. This must be done before you attend the concert.
4) Cite. Cite your sources using in-text citations. Include a works cited list with full citations using MLA,
APA, or Chicago. If you don’t know how to do this, read this.
5) Submit. Turn in your research paper under the “concerts” tab in Blackboard 2 days before the concert
date. It will be checked for plagiarism.
6) Go. Plan ahead. Dress appropriately. Get to your concert on time. If you’re late, you might not get in.
7) Listen. Use active listening during the concert. (See “at the concert” below.)
8) Smile. Take a selfie or have someone take a picture of you that clearly shows that you were at the
concert. In the lobby during intermission is a good time for this! Save your ticket and program.
9) Interview. Talk to someone at the concert. Ask them why they came and what they thought.
10) Write. Add a “part two” to your research paper. This second part should be a typed, double-spaced, 2-3
page reaction paper to your concert. Talk about what you thought, show off your active listening skills,
and include the results of your interview.
11) Add. Add your concert picture to the last page of your paper. If you don’t have this, I can’t accept the
paper for credit. Staple your ticket to your paper.
12) Submit. Turn in a hard copy of your complete paper (research part AND reaction part with picture and
ticket) in class on or before the due dates indicated.
At The Concert: Active Listening
Choose one piece from your concert to analyze. Identify the meter, texture, and two other musical elements.
Reflect on the music. What emotions do you get from that piece? Does it spark anything in your imagination?
Does it remind you of anything? What is it about the music that creates those feelings and ideas?
Interview a fellow attendee after the show or during intermission. Ask why they came and what they thought.
WARNING
DO NOT OVER-USE DIRECT QUOTATIONS. If your paper has more than 50 words that are directly quoted, I will
return the paper to you, ungraded. Quotes can be useful, but you have to know when and how to use them!
Blend your quotes within your narrative. Paraphrase when appropriate. Read this.
DO NOT PLAGIARIZE. All sources, even if they are only alluded to or paraphrased, must be cited.
http://guides.temple.edu/c.php?g=77953&p=528593
http://www.temple.edu/writingctr/support-for-writers/documents/BecominganEffectiveWriterinCollege.pdf
http://www.bibme. ...
Expo 12 Discussion QuestionsThink about the cooperative learni.docxgitagrimston
Expo 12 Discussion Questions
Think about the cooperative learning lesson plan you have developed for studying Crystal Growing and the Rock Cycle. What problems do you envision occurring? Select the most problematic issue and elaborate on it on the discussion board.
Module 5 Activity
Consider the lab you have just completed, Experiment 12, and the processes you went through. Now, assume this experiment were to be conducted in your classroom in groups of four. Create an age appropriate lesson plan in which you conduct this experiment using cooperative learning, while still maintaining the integrity of the 5E Model. Submit your lesson plan as a word document.
Hands-On Labs SM-1 Lab Manual
91
EXPERIMENT 12:
Crystal Growing and the Rock Cycle
Note: Part One of this lab should be performed at least 10 days before your report due date.
Read the entire experiment and organize time, materials, and work space before beginning.
Remember to review the safety sections and wear goggles when appropriate.
Objectives: To grow synthetic crystals from a supersaturated solution by evaporation,
To measure the interfacial angles of minerals,
To make sugar “glass,”
To understand the role of evaporation in mineral growth, and
To determine the dissolution point of certain crystals.
Materials: Student Provides: Pan, small
Spoon or blunt knife
Cup saucer
Stovetop burner
Refrigerator
50 g sugar
From LabPaq: Tweezers
Protractor
Ruler
Magnifying hand lens
Digital scale
100-mL Beaker
3 Petri dishes, large
Thermometer
Set of 18 numbered minerals
Igneous rock sample #19
Sedimentary rock sample #36
Metamorphic rock sample #47
Epsom salt: Magnesium Sulfate Heptahydrate,
MgSO4 · 7H2O
Alum: Aluminum Potassium Sulfate Dodecahydrate,
KAI(SO4) 2 · 12 H2O
Discussion and Review: The textbook definition of a mineral is “a homogeneous,
naturally occurring, solid substance with a definable chemical composition and an
internal structure characterized by an orderly arrangement of atoms in a crystalline
structure” (from Earth; Portrait of a Planet; Stephen Marshak (Norton, 2005).
A crystal grown in a lab is not a true mineral since it did not form by geologic processes.
However, crystals grown in a lab are virtually identical to true minerals in many other
Hands-On Labs SM-1 Lab Manual
92
aspects: they are solid, inorganic, homogeneous, and have a definite chemical
composition and an ordered structure.
By growing crystals in a laboratory setting you will be able to investigate the different
properties that define a mineral. In addition, growing synthetic minerals can offer insight
into the factors that affect the crystal growing process in a true geologic setting. By
“watching” your crystals grow, you’ll be able to better understand how crystal faces
develop in rocks and what influences them, plus you won’t ...
ExplanationMaster Honey is a franchise-style company that sel.docxgitagrimston
Explanation:
Master Honey is a franchise-style company that sells a variety of products derived from raw honey harvested from both local and international bee-farms, called apiaries. Our company was established in 1988 by its founder, Sergio Saladrigas, back when honey was a booming industry, and its business was conducted based on quality rather than quantity. With this philosophy in mind, Master Honey has created a culture of good quality work with competitive pricing. Since its creation, Master Honey has had a successful expansion throughout most of Central and South-Florida in the form of two different types of establishments for retail selling that have made the brand differentiate itself from the competition:
For rather big retail space, Master Honey developed a trademarked concept for a retail-store called “Honey Caves”. Usually placed in malls and around touristic areas, Honey Caves are stores of 1,000-1,500 squared feet that offer the whole catalog of Mater Honey’s products. The product catalog includes:
Products
Types
Large size
Medium size
Small size
Artisanal honey:
Local Honey:
Tupelo
9$
5$
3$
Orange blossom
8$
4$
2$
Red Pepper
7$
4$
2$
Golden Berry
7$
4$
2$
Wildflower
6$
3$
2$
International Honey:
Blue Gum
11$
6$
4$
Beech Wood
10$
5$
3$
Acai
12$
8$
5$
Acacia
12$
8$
5$
Manuka
11$
6$
4$
Honey Blends for:
Tea, Chees or BBQ
12$
8$
5$
Soaps for:
Face (anti-acne)
-
10$
6$
Body
9$
5$
-
Hands
-
9$
5$
Lotions:
Face (anti-age)
-
15$
10$
Body
-
10$
7$
Other Products:
Shampoo
15$
11$
7$
Conditioner
15$
11$
7$
The honey caves have a specific and trademarked design that makes customers feel “like a bee in a hive”. The temperature is set at a low 72 degrees Fahrenheit with low light, and with a constant and subtle bee sound. In addition, the shelves are designed to look like a hive, with a series of hexagonally shaped boxes that designed to be piled together. This gives the shop managers freedom to change the setting of the store with ease and freedom of choice. Furthermore, the stores offer samples from all of our different products so the customers can see, feel, smell and taste the quality that differentiates our product. Also, every single one of our franchised Honey Caves has a large table in the middle of the store in a hexagonal shape displaying many large and artisanal-looking bottles that carry all of the honey types that we offer (that way, if a certain type of honey is not in store, it can still be shipped). The first bottle on each line contains a pump from which the customer can serve previously measured quantities in a small sample cup, and taste the differences in flavor and texture among all honeys from different flowers. The same technique is used with our soaps by providing 3 to 7 sinks for our customers to try the soaps, and realize its unique smell and smoothness. This type of store look like:
For the smaller stores, of about 600-800 squared feet, Master Honey has created another trademarked store des ...
Explain where industry profits are maximized in the figure below.docxgitagrimston
Explain where industry profits are maximized in the figure below:
Problem 13. What real-world evidence would lead you to believe that firms were acting as Cournot oligopolists? Stackelberg oligopolists? Bertrand oligopolists?
...
Exploratory EssayResearch - 1The ability to Wallow in complex.docxgitagrimston
Exploratory Essay/Research - 1
The ability to Wallow in complexity
On a separate paper:
1. Write your Exploratory question.
Your Introduction
Your goal in the Introduction is to hook your reader’s interest in your chosen problem. Often the best way to do so is to show why you yourself became interested in it.
Write about any or all of the following:
· Why do you think you have chosen this particular subject? What interested you?
· Personal connection?
· Specific experiences?
· What do you think are the origins of your feelings?
· What are your first responses/answers to the question?
· Why do you think you feel the way you do now?
· Can you imagine yourself ever changing your mind? Why?
· Can you list (or imagine) different or alternative answers to this question? List some of them.
· How do you feel about these?
· Why?
· At this point, what is the most perplexing, confusing, or puzzling thing about this question?
...
Exploring MusicExtra Credit #2 Due November 6 in classIn G.docxgitagrimston
Exploring Music
Extra Credit #2
Due November 6 in class
In Germany, the 19th century was known as the “Age of Song”. For romantic composers, fusing literature with music represented artistic perfection. The Lied (pronounced “leet”) blended German poetry with piano collaboration. Lieder represent an intimate genre of music utilizing a solo singer partnered with piano. In most cases, the piano acts as more than mere accompaniment as it is able to musically enhance the text, depict moods and atmospheres, and in some cases represent a character in the poem.
For this assignment you will choose any threeLieder and write a 2-3 page paper (double spaced, 12 point font with 1 inch margins) based on the following guidelines to include in your paper:
1. Read the translation of the poetry and establish your own interpretation. Are there any words or phrases that lend themselves to musical depiction? If you were the composer how might you musically depict words or phrases or the mood/ atmosphere of the piece using only one singer and a piano?
2. Listen to the Lied and follow along with the translation. How does you analysis from Question 1 differ or parallel the composer’s interpretation?
3. Pay particular attention to the relationship between the voice, text, and piano keeping in mind the piano offers more than just harmonic support. Provide examples of how the piano enhances the text, creates a mood or atmosphere, or depicts a character from the poem.
4. Does the musical and vocal setting suit the poetry? Explain.
5. Is the setting strophic or through-composed? How does this affect the Lied?
Below are YouTube links to each Lied. Translations of the text are available in the Extra Credit no. 2 folder; print them out for your convenience if you wish.
1. Robert Schumann, “Die alten, bösen Lieder” from Dichterliebe
http://www.youtube.com/watch?v=sGx1zyOPZfM
2. Ludwig van Beethoven, “Der Kuß,” opus 128
http://www.youtube.com/watch?v=NTgcwny1PnU
3. Franz Schubert, “Ganymed”
http://www.youtube.com/watch?v=DMLiVQMDLEs
4. Robert Schumann, “Ich grolle nicht” from Dichterliebe
http://www.youtube.com/watch?v=XDbESDdZmfY
5. Franz Schubert, “Nähe des Geliebten”
http://www.youtube.com/watch?v=t47lxQCvJ5k
6. Clara Schumann, “Liebst du um Schönheit”
http://www.youtube.com/watch?v=kvHPxGfONYY
7. Franz Schubert, “Der Lindenbaum” from Wintereise
http://www.youtube.com/watch?v=zC7gEVSgf9k
8. Franz Schubert, “Rastlose Liebe”
http://www.youtube.com/watch?v=XOBNOB9Oxyc
Type the Boolean operator (AND, OR, or NOT) that best fits in the search statement to satisfy the search criterion stated.
Question 1 (1 point)
Question 1 options:
Find information on pollution in the Chesapeake Bay. "Chesapeake Bay"
pollut*
Question 2 (1 point)
Question 2 options:
Find information on the effect of plastics recycling on the environment. (recycle
reuse)
plastics
environment
Question 3 (1 point)
Question 3 options:
Find information on obedience tr ...
Explain why Franz Boas did not accept Morgan’s view about evol.docxgitagrimston
Explain why Franz Boas did not accept Morgan’s view about evolution ?
What sciences contributed to anthropology ?
How have teens used fashion and music to communicate their identity ?
What styles and attitudes today might seem rebellious to parents ?
What contributions did Pavlov, skinner and Chomsky bring to the comprehension of how language is attained ?
How does language indicate a society's values and priorities?
How has language evolved in some north American communities?
Why is language seen as a significant part of a people’s culture ?
Do advertisers give a false impression of their products ? it this legitimate communication ? why or why not
How can an environmental factors, such as living in a large city or a small rural town, influence individual and cultural evolution
Compare the approaches taken by anthropologist and psychologists in the study of human development ?
What are the various components of all rites of passage ?
How have coming of age rite of passage changed along with modern society
Some rites are experienced alone and some are experienced in groups. explain, with example, why this is the case
How is the body adornment connected to rites of passages
How do films and television programs portray sexual relationship between teens and adults ?
What rites of passage surrounding death have you experienced ?how did you feel about them ?
How do social scientists help people face the haunting prospect of death and the sadness of the loss of a loved one
...
Explanations 6.1 Qualities of Explanations Questions 0 of 3 com.docxgitagrimston
Explanations / 6.1 Qualities of Explanations Questions: 0 of 3 complete (0%) | 0 of 2 correct (0%)
Qualities of Explanations
An explanation is a statement that provides a reason for why or how something became the way it is. Arguments present a conclusion that's presumably new to you and then support this conclusion with evidence that you're likely to believe. Explanations work the other way around: they start with a conclusion that you likely believe (e.g., the sky is blue) and then offer an explanation for why that is so (e.g., because God is a UNC fan).
We will be looking specifically at causal explanations—that is, explanations in which you suggest that a particular physical or behavioral phenomenon is the result of another event.
Situation
Explanation
Traffic on a Saturday
There must be a football game today.
Most explanations start as theories. It can be challenging to fight the human impulse to pick the first theory that comes to mind and stop there, but what are the odds that the first thing you conceive of is in fact the best possible explanation?
Situation
Explanation
Traffic on a Saturday
Perhaps there's a concert today?
Maybe an art festival?
Or possibly an accident up ahead?
With a little imagination, you can come up with a seemingly unlimited number of theories, but at some point you've likely exhausted all the plausible explanations.
Situation
Explanation
Traffic on a Saturday
Perhaps a new IKEA has been built without my hearing anything about it, and all these people are headed to the grand opening.
As with all critical thinking, you'll need some judgment here. Discard the implausible theories (at least initially) and give fair consideration to all the reasonable ones:
· State your theory clearly (make a hypothesis).
· Consider possible alternatives.
· Look at the evidence.
· Evaluate the theory.
Sometimes the facts make the explanation quite clear:
I can see a train moving through an intersection several hundred yards ahead. That explains why traffic isn't moving.
Other times, you'll need to employ inductive reasoning to establish the most likely cause:
I can't see the tracks from here, but I drive through here every Saturday morning and usually a train was responsible for traffic being stalled. So it's probably a train.
We are presented with many such explanations on a daily basis.
Why is this webpage not loading?Why are sales down for last quarter?Why is my spouse not speaking to me?
As you consider potential explanations, keep the following standards in mind.
Consistency
First, is it internally consistent or does it contradict itself?
Second, is it externally consistent? Could this explanation effectively and fully account for whatever it's supposed to explain?
A good theory should be compatible with what we already know about how the world works. This is a problem with many paranormal theories—they go against accepted scientific fact. If the theory contradicts established knowledge, the burden of proof is on the new t ...
Experts Presentation
Student
PSY 496
Instructor
Overview of professionals
Maria Theresa Redaniel, Ph.D.
Suicide prevention specialist who’s main focus is finding ways to prevent suicide cases within local communities.
She is looking to branch out from the community sector to further her expertise on a federal and state vocation.
Received her master’s from the University of Nebraska in Community Development.
Michael Bauer, M.D., Ph.D.
Mental health profession with interest in suicide risk assessments, homicide and product liability especially in relation to psychotropic drugs.
He has extensive background in the field and wishes to further his resume by succeeding as a mentor to upcoming peers in the field.
Graduated top of his class from the University of Illinois 1965.
Suicide and prevention
Effective protective care is essential to suicide prevention.
If you are in crisis, call 1-800-273-TALK (8255) National Suicide Prevention Lifeline
Suicide is the 10th leading cause of death in the united states (AFSP, 2014). And the third leading cause among youth and young adults (Wharff, Ross, & Lambert, 2014)
Research shows 90% of those who have died by suicide had a potentially treatable mental illness (AFSP, 2014).
Prevention starts with awareness and education.
Risk Factors may include mental disorder, previous attempts, family history, serious medical condition or pain. These factors combined with environmental stimuli increase chances of suicide and suicide attempts (Carlborg, Winnerback, Jonsson, Jokinen & Nordstrom, (2010).
Research
Maria’s focus has been in the community prevention. The barriers of suicide documentation in the Philippines has encouraged her research in using psychological autopsy’s to evaluate a course of intervention (AFSP, 2014). Psychological autopsies have been used to present evidence of mental disorders present in those who died from suicide based on a collection of interviews and reports to dictate what they may have thought (Hjelmeland, Dieserud, Dyregrov, Knizek & Leenaars, 2012).
Michael has focused his research in the use of pharmacology in suicide prevention. Giving participants a prescribed amount of lithium has shown great strides in lowering future suicide attempts and depressive behaviors (ASFP, 2014).
Comparison
Maria has strong views in behavior aspect of study. She has culminated research of behaviors related to mental disorders and compared them to suicide reports made from informant interviews and medical documents. She uses such information to hopefully reduce the suicide rates in the community by early diagnosis and treatment prevention.
Michael uses his successful career in clinical psychology to establish the benefits of treating mental disorders to prevent suicides and suicidal behaviors. He focuses his research to provide evidence of pharmacology on disorders. His goal it to use such evidence to reduce thoughts of suicide and attempts.
References
American Foun ...
Explain whether Okonkwo was remaining truthful to himself by killi.docxgitagrimston
Explain whether Okonkwo was remaining truthful to himself by killing himself
Please make sure that you answer this question with 4 pages in length, it has to be MLA format, double space.
LDR/531 – WEEK 2
*
WDWLLW?DISC AssessmentLeadershipPersonality
*
ObjectivesTheories of Leadership Compare and contrast leadership theories.Evaluate the strengths and weaknesses of established leadership styles.
*
Leadership is:
Are leader’s born or made?
Leader traits – the trait approach is the oldest leadership perspective and was dominant for several decades. The perspective is that some personality characteristics – many of which a person need not be born with but can strive to acquire distinguish effective leaders from other people.
Drive, which refers to a set of characteristics that reflect a high level of effort. It includes high need for achievement, constant striving for improvement, ambition, energy, tenacity (persistence in the face of obstacles), and initiative.
Leadership motivation – great leaders not only have drive, they want to lead.
Integrity is the correspondence between actions and words. Honesty and credibility are especially important.
Self-confidence is important because the leadership role is challenging, and setbacks are inevitable.
Knowledge of the business, industry, company, and technical matters.
The most important personal skill, according to the text, the ability to perceive the needs and goals of others and to adjust one’s personal leadership approaches accordingly.
B. Leader Behaviors
1. Leadership behaviors – the behavioral approach attempts to identify what good leaders do. Three general categories of leadership behavior are: (Figure 12.2)
a. Task performance behaviors are the leader’s efforts to insure that the work unit or organization reaches its goals.
i. This dimension is sometimes referred to as:
concern for production
directive leadership
initiating structure or closeness of supervision.
ii. It includes a focus on:
work speed
quality and accuracy
quantity of output
following the rules.
b. Group maintenance behaviors is where leaders take action to ensure the satisfaction of group members, develop and maintain harmonious work relationships, and preserve the social stability of the group.
i. This dimension is sometimes referred to as:
(1) concern for people
(2) supportive leadership
(3) consideration.
ii. Leader-Member Exchange (LMX) theory highlights the importance of leader behaviors not just toward the group as a whole but also toward individuals
The ability to influence a group toward the achievement of a vision or set of goals.
OR
The process of influencing others to understand and agree what needs to be done and how to do it, and the process of facilitating individual and collective efforts to accomplish shared objectives
*
Types of leadershipLeadership involves influencing others (who influences? What type of influence?)to collaborate and agree (purpose of influence?) ...
Explain How these Aspects Work Together to Perform the Primary Fun.docxgitagrimston
Explain How these Aspects Work Together to Perform the Primary Function of HRM
Total: 5.00
Distinguished - Thoroughly and methodically explains how each of the aspects work together to perform the primary function of HRM. The explanation is professional and provides detailed examples that clearly demonstrate that new learning has occurred.
Proficient - Explains how each of the aspects work together to perform the primary function of HRM. The explanation is well constructed and provides several examples that demonstrate that new learning has occurred; however, a few minor details are missing.
Basic - Briefly explains how each of the aspects work together to perform the primary function of HRM. The explanation is somewhat complete, but provides few examples that demonstrate that new learning has occurred. Several key details are missing.
Below Expectations - Attempts to explain how each of the aspects work together to perform the primary function of HRM, but the explanation is too underdeveloped to be considered complete and does not demonstrate that new learning has occurred.
Non-Performance - The assignment is either nonexistent or fails to explain how these aspects work together to perform the primary function of HRM.
Are Any Aspects More Important than the Others? Why or Why Not?
Total: 4.00
Distinguished - Comprehensively explains whether or not any aspects are more important than others, including a detailed reasoning as to why. The explanation is professional and provides detailed examples that clearly demonstrate that new learning has occurred.
Proficient - Explains whether or not any aspects are more important than others, including reasoning as to why. The explanation well-written and provides a few examples that demonstrate that new learning has occurred. One or more minor details may be missing.
Basic - Briefly explains whether or not any aspects are more important than others, including a short reasoning as to why. The explanation is slightly underdeveloped and somewhat demonstrates that new learning has occurred. Several key details may be missing.
Below Expectations - Attempts to explain whether or not any aspects are more important than others, but the explanation is too underdeveloped to be considered complete and does not demonstrate that new learning has occurred.
Non-Performance - The assignment is either nonexistent or fails to determine whether or not and aspects are more important than others.
Optimizing the HRM Role for Shaping Organizational and Employee Behavior
Total: 4.00
Distinguished - Provides a comprehensive and thorough discussion addressing how the HRM role can be optimized for shaping organizational and employee behavior. The discussion is thought-provoking, creative, and utilizes vocabulary and concepts from the text.
Proficient - Provides a discussion addressing how the HRM role can be optimized for shaping organizational and employee behavior. The discussion is mostly complete and attempts to utilize voca ...
Explain the 3 elements of every negotiation. Why is WinWin used m.docxgitagrimston
Explain the 3 elements of every negotiation. Why is Win/Win used more than Win/Lose in life? When is the efficiency of a negotiation determined? Give an example of in the world today of a good and a bad negotiator
Lockeport Medical Center
Mission and Vision
As the regional leader in advanced medical care, we take our responsibilities seriously. Our vision and core values help guide us as we work to help and heal each patient in our care. We provide the community quality health care services through the compassionate hands of well-trained staff, in a technologically advanced, cost-effective manner.
Our Mission: To improve the health of the people of the state and surrounding region.
· Serve people as a not-for-profit health system governed by a voluntary community board.
· Ensure sustainability through stewardship of the community's assets.
· Provide quality services in a compassionate and cost-effective manner.
· Collaborate in order to improve access across the entire continuum of care.
· Promote wellness and health to benefit the community.
2020 Vision
A regional diversified health system providing superior care and service to patients and their families through a full continuum of integrated services, education, and research.
Major Strategies: "DEEDS"
Develop people
Excel in patient quality and safety
Enhance operational and financial performance
Develop the health system
Strengthen key relationships
Our MERIT Values
Five core values: Mercy, Excellence, Respect, Integrity and Trust/Teamwork. These values form the foundation for our culture at Lockeport Medical Center.
Mercy
We work to create a caring and compassionate environment responsive to the emotional, spiritual, and physical needs of all persons.
Excellence
We strive to meet or exceed patient/customer needs and expectations and work as a team to improve every aspect of care and service in our organization.
Respect
We value the innate dignity of all persons, respect their uniqueness and diversity, and enable the development of each one's full potential.
Integrity
We are consistently open, honest, and ethical, as the ideal means to protect overall safety and ensure confidentiality and privacy.
Trust/Teamwork
We say what we mean and do what we say. There is open and honest communication with patients and among staff. We recognize everyone’s contributions for the benefit of the patient. We strive to enhance the health of the communities we serve, and work in cooperation with other organizations to protect our vulnerable populations throughout the region.
Job Description
Position Title: Surgery Schedule Coordinator
Department: Operating Room
FLSA Status: Non-Exempt
Position Summary
Uses clinical and management processes to plan, organize, staff, direct, and evaluate patient care services; uses available resources to meet MD/customer needs. The surgery schedule coordinator uses knowledge of interactive management and humanistic values in creating an environment ...
Exploration 8 – Shifting and Stretching Rational Functions .docxgitagrimston
Exploration 8 – Shifting and Stretching Rational Functions
1. Sketch the graph of each function.
3( )f x
x
3
( ) 1
2
f x
x
Domain: Range: Domain: Range:
vertical horizontal vertical horizontal
asymptote: asymptote: asymptote: asymptote:
x-intercept: y-intercept: x-intercept: y-intercept:
How do you find the domain and vertical asymptote of a rational function?
How did you find the range and horizontal asymptote of THIS rational function?
How do you find the x-intercept of a function?
How do you find the y-intercept of a function?
Graphing
3
( ) 1
2
f x
x
is relatively easy.
Re-write the function rule as a single fraction by
subtracting the 1. Then find each of the following
for the newly written function.
Domain: Range: x-intercept: y-intercept:
vertical horizontal
asymptote: asymptote:
How do you find the equation of the horizontal asymptote for THIS type of function?
WebAssign Problem:
Graph the function,
2 4
( )
1
x
f x
x
, by shifting and stretching the function, 1( )f x
x
.
The horizontal shift is ______________________ because ________________________________.
The vertical shift is ______________________ because ___________________________________.
To find the stretch, you must re-write the function,
2 4
( )
1
x
f x
x
, in 1( )f x
x
form, by setting the
two rules equal and solving for c. Then sketch the graph below.
For the group submission:
Graph the function,
2 2
( )
1
x
f x
x
, by shifting and stretching the function, 1( )f x
x
.
Horizontal Shift:
Vertical Shift:
Stretch:
vertical horizontal x-intercept: y-intercept:
asymptote: asymptote:
Domain: Range:
Group Submission for Investigation #8
Write group member names legibly here:
Graph the function,
2 2
( )
1
x
f x
x
, by shifting and stretching the function, 1( )f x
x
.
Horizontal Shift:
Vertical Shift:
Stretch:
vertical horizontal x-intercept: y-intercept:
asymptote: asymptote:
Domain: Range:
...
Exploring Innovation in Action Power to the People – Lifeline Ene.docxgitagrimston
Exploring Innovation in Action: Power to the People – Lifeline Energy
Trevor Baylis was quite a swimmer in his youth, representing Britain at the age of 15. So it wasn’t entirely surprising that he ended up working for a swimming pool firm in Surrey before setting up his own company. He continued his swimming passion – working as a part-time TV stuntman doing underwater feats – but also followed an interest in inventing things. One of the projects he began work on in 1991 was to have widespread impact despite – or rather because of – being a ‘low-tech’ solution to a massive problem.
Having seen a documentary about AIDS in Africa he began to see the underlying need for something which could help communication. Much of the AIDS problem lies in the lack of awareness and knowledge across often isolated rural communities – people don’t know about causes or prevention of this devastating disease. And this reflects a deeper problem – of communication. Experts estimate that less than 20% of the world’s population have access to a telephone, while even fewer have a regular supply of electricity, much less television or Internet access. Very low literacy levels exclude most people from reading newspapers and other print media.
Radio is an obvious solution to the problem – but how can radio work when the receivers need power and in many places mains electricity is simply non-existent. An alternative is battery power – but batteries are equally problematic – even if they were of good quality and freely available via village stores people couldn’t afford to buy them regularly. In countries where $1 a day is the standard wage, batteries can cost from a day’s to a week’s salary. The HIV/AIDS pandemic also means that household incomes are under increased pressure as earners become too ill to work while greater expenditure goes towards healthcare, leaving nothing for batteries.
What was needed was a radio which ran on some different source of electricity. In thinking about the problem Baylis remembered the old-fashioned telephones of pre-war days which had wind-up handles to generate power. He began experimenting, linking together odd items such as a hand brace, an electric motor and a small radio. He found that the brace turning the motor would act as a generator that would supply sufficient electricity to power the radio. By adding a clockwork mechanism he found that a spring could be wound up – and as it unwound the radio would play. This first working prototype ran for 14 minutes on a two minute wind. Trevor had invented a clockwork (wind-up) radio! As a potential solution to the communication problem the idea had real merit. The trouble was that, like thousands of entrepreneurs before him, Trevor couldn’t convince others of this. He spent nearly four years approaching major radio manufacturers like Philips and Marconi but to no avail. But luck often plays a significant part in the innovation story – and this was no exception. The idea came to the attenti ...
Experiment 8 - Resistance and Ohm’s Law 8.1 Introduction .docxgitagrimston
Experiment 8 - Resistance and Ohm’s Law
8.1 Introduction
In previous experiments, we have investigated electric charges largely under stationary conditions. These
studies were useful in order to illustrate concepts such as the electric potential and the electric field, and
forms the foundation needed to further our understanding of electricity and electrical circuits. In contrast
to electrostatics (charges confined to be stationary), the field of electricity deals with the flow (induced
movement) of electrical charges. Due to its many uses, most individuals knowingly or unknowingly have
a daily reliance on electricity. It is especially essential, in: (1) the distribution of energy, and (2) the
processing of information. To enable this, electricity must be handled in circuits, a closed loop of
conducting wire connecting power plant with individual homes, and businesses. To appreciate this
phenomena, it is useful to investigate various aspects of simple circuits and the various laws that may
govern them.
8.2 Objective
1. To verify Ohm’s Law
2. To use Ohm’s law to determine the resistance of a light source.
8.3 Theory
Our initial investigations will be guided by Ohm’s law, which postulates that the relationship between
current flow I, potential difference V, and resistance R for certain materials will observe the following
mathematical relationship, given a constant temperature constraint:
…………. 1RV = I
These materials are called Ohmic conductors, equation 1 implies that the ratio of voltage to current for
these materials is constant. Manufactured resistors can be considered as such, but other components such
as semiconductor diodes, filaments, and LEDs are non ohmic. In this experiment, we will verify Ohm’s
law by assessing whether it holds for a set resistance (typical color coded resistor). Further, we will apply
this to ascertain the resistance of a light source.
8.4 Apparatus
Variable DC voltage source, color coded resistor, (2) multimeters, connecting wires, light source
8.5 Procedure
Part A Verifying Ohm’s Law
1. You will be given a particular colour coded resistor from the set; use this and the other apparatus
items to set up the circuit as shown in figure 1 below.
Figure 1
2. Adjust DC voltage source so that a relatively small voltage reading is seen across the resistor R.
Record this voltage reading, and the electrical current reading ...
Experimental Essay The DialecticThe purpose of this paper is to.docxgitagrimston
Experimental Essay: The Dialectic
The purpose of this paper is to experiment with a style of essay that you’ve probably never written before: The Dialectic. We’ll be testing Foucault’s idea about polemics in order to push ourselves to consider and explore multiple conflicting perspectives in a single paper.
The basic premise is that you will write a series of thesis, antithesis arguments - point and counterpoint paragraphs. You will first argue a side of a discussion and then take up the opposing side, eloquently crafting a rigorous response to your own ideas.
Your essay should explore the concepts we will be discussing in class, so if you’ve been doing the homework, you already have some arguments to work from. If you would like something more specific to work from, the Justice discussions and comments that your peers will be posting on course studio are a good start. In addition to this, you should also read through your notes from our class discussion about the predictions from the Constitutional Convention 1787. Can we make an argument that the poor indirectly sell their votes to the rich? Does the wealthiest class of America really dictate society? Do the poor impose upon the freedom and the property of the rich through voting? In what ways can private interests manipulate public opinions and widely held beliefs? Who is influencing whom? Who is responsible for the actions and behaviors of masses and of individuals?
This dialectic should not look like the typical childhood debate: “YES. NO. YES. NO.” You should not simply state a side and then write the inverse. Instead, you should invent the most compelling defense for both sides. Where students misstep here is in the unfortunate habit of writing weak counterpoints - something “stupid” that’s easy to rip apart. Right? We’ve all done this in essays that require counterpoints. Why that doesn’t work for this essay is that it would essentially mean that HALF of your essay is intentionally “stupid”... This doesn’t make for a good college paper. Instead, you must argue both sides so well that the reader cannot tell which is actually your own position.
To build this paper over the next two weeks, you should be exploring as many points (and counterpoints) as you can imagine in your homework assignments. In your final essay, I would like you to try to compile what you believe to be your best ideas.
This paper cannot be a summary - you should not simply have a series of points restating and summarizing the arguments that you’ve pulled from the various texts. Instead, you should use what you think is interesting from the text as a way to launch into a discussion of your own brilliant ideas.
Format: double-spaced, times new roman typeface, 12-point font, with 1 inchmargins.
The paper must be 1000 - 1400 words in length.
Peer Review Draft Due : May 27
Final Draft Due : May 29 via email by 11:54pm
REFLECTION PIECE: You will also be writing a 300 word reflection on your writing. In this piece you sho ...
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
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.
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPRAHUL
This Dissertation explores the particular circumstances of Mirzapur, a region located in the
core of India. Mirzapur, with its varied terrains and abundant biodiversity, offers an optimal
environment for investigating the changes in vegetation cover dynamics. Our study utilizes
advanced technologies such as GIS (Geographic Information Systems) and Remote sensing to
analyze the transformations that have taken place over the course of a decade.
The complex relationship between human activities and the environment has been the focus
of extensive research and worry. As the global community grapples with swift urbanization,
population expansion, and economic progress, the effects on natural ecosystems are becoming
more evident. A crucial element of this impact is the alteration of vegetation cover, which plays a
significant role in maintaining the ecological equilibrium of our planet.Land serves as the foundation for all human activities and provides the necessary materials for
these activities. As the most crucial natural resource, its utilization by humans results in different
'Land uses,' which are determined by both human activities and the physical characteristics of the
land.
The utilization of land is impacted by human needs and environmental factors. In countries
like India, rapid population growth and the emphasis on extensive resource exploitation can lead
to significant land degradation, adversely affecting the region's land cover.
Therefore, human intervention has significantly influenced land use patterns over many
centuries, evolving its structure over time and space. In the present era, these changes have
accelerated due to factors such as agriculture and urbanization. Information regarding land use and
cover is essential for various planning and management tasks related to the Earth's surface,
providing crucial environmental data for scientific, resource management, policy purposes, and
diverse human activities.
Accurate understanding of land use and cover is imperative for the development planning
of any area. Consequently, a wide range of professionals, including earth system scientists, land
and water managers, and urban planners, are interested in obtaining data on land use and cover
changes, conversion trends, and other related patterns. The spatial dimensions of land use and
cover support policymakers and scientists in making well-informed decisions, as alterations in
these patterns indicate shifts in economic and social conditions. Monitoring such changes with the
help of Advanced technologies like Remote Sensing and Geographic Information Systems is
crucial for coordinated efforts across different administrative levels. Advanced technologies like
Remote Sensing and Geographic Information Systems
9
Changes in vegetation cover refer to variations in the distribution, composition, and overall
structure of plant communities across different temporal and spatial scales. These changes can
occur natural.
How to Make a Field Mandatory in Odoo 17Celine George
In Odoo, making a field required can be done through both Python code and XML views. When you set the required attribute to True in Python code, it makes the field required across all views where it's used. Conversely, when you set the required attribute in XML views, it makes the field required only in the context of that particular view.
The simplified electron and muon model, Oscillating Spacetime: The Foundation...RitikBhardwaj56
Discover the Simplified Electron and Muon Model: A New Wave-Based Approach to Understanding Particles delves into a groundbreaking theory that presents electrons and muons as rotating soliton waves within oscillating spacetime. Geared towards students, researchers, and science buffs, this book breaks down complex ideas into simple explanations. It covers topics such as electron waves, temporal dynamics, and the implications of this model on particle physics. With clear illustrations and easy-to-follow explanations, readers will gain a new outlook on the universe's fundamental nature.
How to Manage Your Lost Opportunities in Odoo 17 CRMCeline George
Odoo 17 CRM allows us to track why we lose sales opportunities with "Lost Reasons." This helps analyze our sales process and identify areas for improvement. Here's how to configure lost reasons in Odoo 17 CRM
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
A workshop hosted by the South African Journal of Science aimed at postgraduate students and early career researchers with little or no experience in writing and publishing journal articles.
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 ...
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
Exploiting Artificial Intelligence for Empowering Researchers and Faculty,
International FDP on Fundamentals of Research in Social Sciences
at Integral University, Lucknow, 06.06.2024
By Dr. Vinod Kumar Kanvaria
Digital Artefact 1 - Tiny Home Environmental Design
eu),... ,-SituatinFirst-best worldDistorti.docx
1. eu)
,.::::.. ,-
Situati*n
First-best world
Distortions
[xternal cosis
Externai benefits
Monopoiy polver
lvlonrpsotiv power
(a case not deveiop?iC
in thrs texibook)
Distorting tax
Distorting subsidy
P:> Slvlc
P rryith tax > -9Avf C
Pwith subsidy < 5M{
Distortions and J'heil Ft}'ects
lneentives at the Margin
2. P:MB-MC:SMB:SMC
SMC>Pi:MB:MC:S{dB}
SfrlB -. P l: IVB : MC: SMC
Chapter 10 Argtu;tLnls Jiir ,-rt.:./ .rgcrirt.rt Pnriecf iott
Effeets
Exactly the right amount is supplieC
anC demancled.
Too rluch is suppriecl becau:e suDljlters
make and seli extra uniis far which the
socral costs exceeci the plrce (whiclr equals
MCand MB ar-td 5M8i. Exarnple. production
that pollut*.s air or lvater.
Not enoi:gh ts demanded because
demanders receive only private benefits
equai to the price, rrot the full social
benefiis. [xample: trarnrng or education
ihat brings extra gains in attitudes or
leam skills.
I'jot enough is demanded because the
monopoly :ets the price too high.
Not *nough is sunpled because the
moriopiony sets its br:ying price loo low.
Example. a single firm that dorninates
a labor market anrj uses its power
to sei a lou; wage.
3. l'.lot encugh is demandeej becaitse the tar:
makes the price io huyers exceed the
revenLje per unit receivecl by sftpliers.
Too rnuch is demandeo becarlse the subsidy
makes the price to iruyers iower than ihe
rev€nue per unit received by suppliers.
SMB
)-
/' llli<et pricr'
llB Plilatc nrar.einal benefit olal auir,it-v (to those v,ho demanrl
iti
,1'1{' Privale rlrrginal ccst of an activity ito those *'ho sripply
iti
.tl.1lJ Socill rmrginrl herrelit r:f an activit-v (to er,er-vbody
iriiecied.)
.tJli Solri uraryinai eosl of m;rctivity 1to er,'elybodl aft'ected)
In a first-best norld lree tracle is ecorrornicaily efficient. Frce
tracle aliows the "'irtvis-
ible hand" of nrarket competition ter reach globaily Private
pt'oducers. reacting to the sig-
rral of the niarket pdce, exparlcl produetion in each country to
levels that are as good as
possible ibr the rvorld as rl'hole. Irrit,ate cLtilsunlers, also
reacting to price signals. expatrd
theirpurchases of products to levels tliat make {he r.vhole
r,vorlcl as rvellolf as possiirle.
.
Our lvorld is not ideal. Distcrlions exist, attd thel' clo not
4. autoruaticali-y cancel each
other out. The distortions rcsult lrom ongoing gaps betiveen tire
privaie and social
lnternational Economics - Vol. 1
par t IWO lr,r.li l,trlicr
216
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5e*efitS Or Costs Of an aCtivity. We live in a:,.;.=;1d'lr-:1 Itiri
d, one tl-lat includes
distortions. As long as these gaps exist bets'een r,vhat private
inclividuals Llse t{} l}lake
therr ilecisions and the fuil ef-f'ect*q of these ilecisions on
society. pt'ivute u{:fiott' u)ill
not !etic! k; lke b<:.st :ta',il1!e ouiL:otile' fb| societr''
'flrere ale trvo niajor sources ol clistortiolrs in ail econolllv.
Iiil'st. ;ridi*gt.fttilttt"t:;
are ways i1 whicir piivate rnaikets fhil to achieye full eccnomic
efficiency. Second
goyerlfltent polit'ie.s {'uil distort ail ()lltervti.€
(L:ottat}ticdll.t' e.llicient privLlte tnat'kef'
i;igur* 10.1 provides infblnation on six specific t)ipes
olclistortions. with fhe first
tbilr being types of pr:ir,ate trarket ihilures. arld the last ftvo
being government policies
thal catt create distot'titltis.
6. The first two types of distortiorls in the figur"e Are *3fll:l!:i: .
i'
'- LrI 'i'';i r ''
{tif*{i{ {net el1i:ct.s or1 iti€rfies ofher f}ratt fhcse agreeing fo
buy'or sell in a nrarker-
place). The filst example of an externality is the classii case of
pollution' Consider
,h..ur* ol riverl:ollut'ion, all example ue *'ill explore at leilglh
in Chapter 13' if the
sellers of paper ploilucts {ire not fbrcecl to i1o So. they do not
1'L)ck01} thc dallage
dolle
by tlie papei niiiis' r'iver poihrtion as part of the cost of tlieir
produetion' So
the pol1u-
tigl costs afe not incorporateclinto thc p1"ice of paper'
Similarly. buyeri; of-petroleunt-
luels do not reckon thaithe social cost olair pollution fiam using
those ftlels is
part of
the lirel ilrice that they have to pay. If sorae costs of
proelllcillg or
collsllmillg a pfoduct
are ignoied by the private decision-makers. then too much of the
product
is produced
01'consumed.
7. Our seccld example ol'an"externalit,f Supposes that jobs in a
certaitt impolt-
competlltg sector generate greater I'etul'tl$ for society than are
trlel"ceived
by the people
who decicie rvhether o. noito take the jobs.'fhese exterrlal
benefrts can happen.
lbr
instance. if working in the sector brings gains in knowledge,
skills' anil attitlldes
that
benefit firms or people other than the workers and en'rplo3'ers
in the sector'
In this
example the sociil niaryinal benefits (.t&18) cf u'orking in tire
sector irre higlier
than
the rvage rale (or the piice, P) that rvorkers rcceive . Ii soipe
bettet-its o1'the activity
are ign*orerl brv prirrate decision-makels" then too little of the
activitv llccilrs
(in the
example, loo ferv people are hired into jobs in the sectot')'
in this chapter le foclls on rlistortiolls caused by ertet'nalities'
ln fact' 'e
focus on varitlus kincls of external benefits that are the "extra
good'' that can
8. ae cornpany lccal proclrrctiorl of a prodr-lct or enlploytttent in
producing the
prod-
1ct. We oniy briefl-v tnetrtion here the otlier four types oi
rlistortiolts shor'tt itt
Figure l0.l .'rl,lonopoly
power can create a clistot'tioti because a polverfll seller
restricts olltput
to raise price ind increase profits. In the box on clotnestic
noncrpollr in ClTapler
9' we
sarv that fiee tracle could eliminate thjs clistortion by forcing
tlie domestic
lllonopolv
to cotnpete tr,lth forc'ign firtns. h{onopsolly power can create ii
disiortioil
because a
por'r,erful buyer sets a price that is too 1ow'
In the absence of airy other rlistortiolt. a tax creates a
distot'tion by artificiall'v
lais-
ing the price to br,yers. our analirsis of a tafifT in Chapter I is
an exarnptr* of a tax
diitortiiin and ths inetlicienc,r'caused by tliis distortion.
In ihe abse*ce oi'any otliei'distorti.J. a governmeni sLrbsidy
creates a distortion
9. bV
artiticially lorvering th! plice to Lruyers. Essentiall,t", a
subsidy' is like a negative
tax'
we rvill examine sLibsitlies later in this chapter ancl in chapter
1
'l'
lnternational Economics - Vol. 1
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Dc you iike io eat things that are sureet I if ycu do,
end il you live in the United stfrtes, the Europe;n
Union, or Japan, then you are a viriiin of your
criunrry's protectionist g:clici*s toward !ugar. The
clomrstic pri<.e r.rf youl" 5i_,gar is about cJoubje the
'woric price. For ihe tJnjted States, cn ave!.age
dLlring 20$0-;0i0, the rjoriestic price of ra,x, sugar
rt,as $C.?1 per pouncJ, w.hile the world price wa:
$tl.1l per pourril. For ihe Ljniterj statec, sugar pro_
tecticn costs consumers about $3.5 billion p€r ysa1.
i t.
10. 1
e' u
I I
e. i
1?,? v-?1.i,t9:e-5t y,?,t'rJs,s,,t*El.bu'
€ver sent a ietler to your iegislaiive reilresenta-
tive asking him oi' her to oppr:se sugar oioiection,
a policy that is cleariy *gairis.i your intereets? Have
you rontributed monev cr tirne to a group that
iolibie-c the governrrient to e nd :ugar proteclicn?
l)'-) ysu kncvr anyone who h;.is eryel rjone sr.:?
Presumebiy not. Why nat? lVhile $3.5 L:iliicn per
year :cunds llke a ict nf money,, it is cnly about
$11 per person per year. As r.riscu:sed in the text,
lhe average qain for anv eile person to oppose
1i:i: protection is smali. lt's nst worth Voijr effort.
Ihe situation is a little different for sugar
producers. Fcr tire United States, tire increase iir
d*meltii_ proclucer surpli-;s is abou! $l.S bitiion
per y"ear. These gains aie ceineentrateci in a srrall
nurrber cf f irms. ii is worth it for thefii to actively
seek poiicies tiiat resirairi sugar i;nports. 'lv,ro
rompanie;, A.nrericari Cryslai in North Dakoti:
and Mir:iir:slte, and l-lo-5un in FloriiJa, have i:een
F)*rtirlriarly active, contr"itruting rnillions of dol-
i*rs ir.} recent yesrs to Democratit and Repubiican
c*ngressional candidates and politicai paities.
i:or f:lo Sun, o*;ned b-v tr,rio brcthers, Alfonso and
Jose f anjLri, oile estifiate i5 that pr.rtertifit.tist
sr-rr;ar policies add $55 nrillion per year ir: theii'
profits. A fe*.r ntiliion bucks io defend this profit
stream is rJefinitely a good invesiment.
11. .a.ficth€r group active in loi:bying is ilre
Arnei'iean Sr"rgar Alliance. representing rnajr:i" U.5.
sligar grcwers. ln additicn, ihe high dornertic
r:i'ice for sugar expanris demarrd fcr cr:rn sweel-
encrs, a ciose substitr.ite fcr sugar. Corn farnrers
in the Anrerican Midwest like the suqar prot€e-
iicn, ano they have a rnajor influenre on the
positions taken b;r their states' representatives
and 5enators.
Tire Coalition for Suqar Reforrn, yvitich inclLlrJes
food manufaciurers that usg suqSi coilsume!-
groups, taxpdyer advo{:ates, and environrrtsritai
grcups, is ;:ctive iri opposing suger proiectiori.
It nas 5ome good argumenls on its sicie. fr,s Jeff
Nedelnran. a spckesperscirr for the coalitjon,
s.lid. "This is a corporate rnrelfare program for
the v€iy rich,"- Il_re coaiitian poiiltt o,..tt thai
jobs cre being lost as sugar-uslnq firrns {like
candy makers) shift procluction lo otiter countrisr
ttYlr'd?6iilq;i piices are cheaper. Furtherrrrore, i:y
polluting and disrL:ptin{ water flov,rs, the pro-
tected sugar production in Flcrida is ai:o a major
cause of serious environinent;;i rieclinq: in ihe
Lverglades. These are Scod poi{tts, but ihey ;rre
nc nratch for the nloney arrd or-gaiii;ation cf the
rjt opunent,, oi prol.:ciion
Foreign sugar producers, iliany cf them poor
fai'mers in develcping aountrie:, are ai:o lrurt
by proteetianist pclicies in imoorting countries.
Researchers estirtat€ that the rnrorld rugar f.rice
.would rise hy,-17 Derrent if the t".iniied States
12. rernov€d its sr:gar ooiicie:. Br"rt it is not easy for
foreign interesls ts harre an effect sn the U.5.
poiiiical pro{ess. Fcreigners don't vote. and polit-
ical cppcnents can charcle thai legislaiors whr:
openiy side with foreigners aqainst i-J.5. ',arorkers
and cornpanies ;re "anti-Arneric.lri. "
Scr the sirgar protectian pclitie: r,onj:inue" For
lhe Unite{j statrs, tlte net coti to the iountry is
clo5e to $2 biilion per year lt is n*t thet s$gar
is so large or inportant a part of tire eccnomy
that we have to proteet it. ln the UniteC States,
about 38,G00 people work grorrvirig suqar, and
about 16,000 peopie r,vork in :uq*r reiininq, iir
totai aboLit C.01i perc€nt of f_he U.5. l;rbor force.
lf we shifted in free trade, enrg:k:ymeni would
probably decline by 3,0110 ialthougir ilre deci!ne
could be as high as 15,000). The small nunrber of
people r,',ho lose theit- jobs cauld be reemployeci
';vith little irsuble in other sectors rif the eran-
omy. lnstead, vre see the ,r-rure FOiitii;r! e{onofiiy
of proteclion. r.vith the ilrilduaer intere$t! in thi-c
t,ase much better organi:ecl and effectlr:e than
the consumers are.
*A: quoted in "Sugar Rules Defy lree -Tr::de i cgic,"
llev,; Yark Tintes, Mav 6, 20Ai.
i lq
d."" i
Chapter 1 1 Ptrsltiirg lirlrurls ': | '
crrrreut coillpetitors in the importing counfiy, it may exllect
that, once it raises prices.
13. nes, flnns, inelriding r)ew expofiers i'roln otlter countt'ies, rvill
elltcr ls cotnllctilors.
The prc.datory exporter u,ould not be airlc to raise priccs or to
keep thtrn high for very
lang. Recent resiarch suggests thai no more tlian 5 percent ol
a1i cases of aileged
du:lping in the Unitecl States. the European Union, Canada.
fulexico. and lnilia show
even a nroderate possibility fbr predation (and it is possible that
none ol these cases
inrol'ues predation;.
Ciyclical durnpin-e is the inost cornptricatecl kind of durnping
lbr" the inrporiing
country. Most cyclical durlping is probabi,v the nonnai rvorking
of n'ell-functioning.
crtmpetitirre global prociuct markets. Wlien clemand declines,
the market price lalls il;
ihe sliort run, A firni lvill continue to produce, sell. and even
expofi sone anouut ct
the procluct, as long as tire levenue earned at least covers
variable cost. This is exactl-v
what rve want to happen rvhen tl:ere is a decline in demand.
Productioit deciines
s,;nrervhat irt rnany counlries as the iiorld price lalls. Ther"e is
an etTicient global "shar*
ir:g" ol the clecline in clentand. Once the recession ends,
demanel price. and global
production will rect'ner. {if insteacl loo nuch prodltction
capacitl,'contitrues to exist.
then evenrualll, there will neecl to be an elTicienl global
sharing olcapacity l'ecluctlotl
14. before price can recover.)
I'he importing country nra.v.- not be completely conr.inceel that
cyclical dLrn-rpitig
is fnir3rrsi because it is usually glolrally eflicient. Whert
dentatld dcciint's b,v" sarr''.
10.-percent. whiqh countries abssrb horv nuch of global
redrtctittti in output'.) ls it
tair tbat the ilnport-country/ firrns have to re{iuce their output
end suller losse-c'.)
In particular iithe clecline in ciemancl is a result of a nationai
recessiotr in the
exporting coulltr-v. rvhy is it lair that the exporting countrY
can "expott sonre of its
une mpicyment"'.)
,,s usual. it is not easy to answer the question of lvhat is 1air.
.l'he
intet'tlational
sharing of recessiolrs is one of the etfects that comes r.vith the
genexal benelits ol
iniernatiolaitrade. W'e carr also recall the key lesson lioni
{ihapter l0-*-use the speci-
ticity rule . The real problem here is tire ccxrcern about
producer losses. For instance.
if the ke.v cotcern is abor,rt unentplol,eil workers, the country
should provide suilable
unempIoyrnent insurance or adjttstment assistance.
:.
Our discr-rssion suggests ti-rar dumping is ofteri goocl for the
country irnporting the
dunped expolts but thal two types of riunrping couid he bad lbr
15. the iir,porting corffry'
Predatory duniiring can be bad il it is successfitl. but success is
probabl-v rare. Cyclicai
clurlping can sometitnes Luitairly haum thr' importing countrY.
but nruch of tlie tirtle
it is probably the normal rvorking of the cornpetitive rnarket.
The inplication is that
tlie irnporting-country's government policy torvard dumping (its
antidunping policy)
sfioulcl exanrile each case and consider benefits and costs
trelirre imposing antidulrlp-
ing rluties or other resfi ictions on dunrped imports. ln fact,
actllai gor;ernrnetrt poiicies
are not at all like this.
'fhe W1-O 1riles perrlit countries to retaliate against cfun-r;littg
i1'the dumping
rnjLtres dornestic irlpori-cor-npetlng producers. If the
gtlvernrtent in the inrporting
lnternational Economics - Vol. 1
lndia
Furopean Unicn
United States
Argentina
f hiria
Brazil
Turkey
Pakistan
South Africa
16. rustralia
Scr-rth Korea
WorlC
-lop
1 1 lnitiatols olAntidumping Cases
Nurnber of Cases
lnitiated
1986-1990 20S5*2009
0 196
182 103
184 84
a78
069
663
tl ))
046
737
156 34
131
tfo 992 662
Number of
New Antidumping
lVleasures
2S05-2009
18. 37
1,379
Average
Antidumping
Suty lmposed*
11 alI / /A
4a
89
85
54
5:
11
J)
45
59
79
i.JA
Notes: NA: lrot arailable.
*For lnciin. lverage 1992-2il02. source Canguli (2008): for the
European Union. the United Stares. and Chinr. ai'erage 2002
)004-
sorirce Bor,;u {20i01): fot'lther countries^ average 199--i-1999.
source ('ongressional BLrdget Ciiice {1001I.
( )r!rili /irl ir fi. ": rti:tlurnPinE: Slrl islirs rrt .nlidtlnip irlg.''
19. coltntrv ilncis both dumping and iryurrl then the governrrent is
perrlitted to inrpose an
,::'-'t,1".:j.: ..:: ; :;t11.s,'|-flfl extfa tadffequal to the disclepancy
{the dirmping margin}
betr,r'een the actual expot1 plice and tlte normal Yalue.
Antielumpirrg cases throi-rghout the rmrlcl actuall,v were inf-
r*'{lllent r.tnlil tlte late
1t)70s. and as oi'lg80 only about -34 countries had antidutlping
iaws. T'hert more
con:rtlies acloptecl antidunrping 1arvs. especially since 1990.
arrci by 2010 lnorc than
i00 couutries lrad thenr.
Lip to rhe lale I 980s. the lbur '"traditional users" of
antiduntping ithe United States.
tfue European Union. Canarla. and Austr:alia). accounteci for
ovrr 90 percent of the
cases. but then the use spread. Figr"u'e I 1.2 shows the
countries tliat are the niajor users
af autidunrping actions during 2005-2009. From l qB6 - 1990
t<i 2005-20t)9. the nurrtber
of cases worldrvide increased b5,'-35 irercent, attd the share of
thc fi:ur tradition:rl tlsers
{inc|,rding Canacla. rvith on1-v 18 cases during 2005-2009)
dropped to 24 percent of'
total cases, Inclia haci no antidumping cases untii 1992. but by
20A5'Z00c) it rvas ihe top
initiator in the r.,,'oric1. China enacteci its antidunrping
policies oniy in 1997 ar.rd quickly
rose to be a r"najor injtiator. Argentina and Pakistan alsc went
20. fi'om zero to top 10.
Wbrlcirvide" the prodilcts most often involvecl in dumping
cases are chemicals. sttlel
aril othcr metals. plastics and rubber prochlcts^ macirinery,
texfiles. iind apparel.
'i'he
countries rvhose exporters are nlost fiecluently charged rvith
clurnping arl: Cliina, South
Korea. Tais'an. rlre iinited States.l-hailand and lndonesia. For
{lhilra. in 2009. alrotrt 2
percert of its exports were subject to antidumping nreasures in
the iinporting countries.
P,
Sii
&:1.
-L-i:
Et'
*:4:
::r:
i,'
ilr,
tnlernauonal tconomics, 1 5th Edition 249
Chapter 11 I)rrsirirrg Eri,.rn'ts
21. Let'"s look more closely at U.S. antiduntping polic-v. A case
usually begins with a
complaint flonr U.S. producers.'Ihe U.S. Department
olCommerce exarnines whether
dumirinre has actually occurred and the U.S. International
Ti'ade Conmission exam-
ines u,hether U.S. ftms have been injured. In adclition,
negotiations may occur witir
foreign exporters. If they agree to raise prices or to limit their
exports, then the case
can tle tenninated or suspended. (This type of outcorrre has
been cc)inlnon in cases
involving steel and cheriiicals.;
Iil about 94 percent of it determinations, the Department of
Commerce flnds solne
antollnt of durnping-the iarv and the procedures are biased to
inake sholving duinp-
ing easy. In cases in which the comparison is betueer the export
price and the home
market price. therc are arcane rules about cost tests and
ignoring export prices that
are above the home markel price. Tl're upshot is that only low-
priced exports tend to
be compared to only high-priced home rlarket sales. In cases in
which export prices
instead are cofirparcd to average cost, obtaining and
interpreting data on the costs
incurred by lbreign exporters are often difficult, so the
Comnrerce Department has
ieeway in detennining ivhat normal value is. Lindsel' nnd
lkenson {20A2}. using actual
data for l8 antidumping cases. examined them for specific
biases in the methods used
by the l)eparfilent of flommerce. They concluded tiral in 10 of
22. the 18 cases there actu-
ally ra,as no dumqing, and jn 4 of the orher B cases the actual
dutxpilg rvas less than
half tiie amount fbun<l by the Departmenr.
The injury standard is not strict" Lrut injury is usuaily the key
to the outcilnre of a
case. In about nvo-thircls of the cases. the International T}ade
Commission finds mate-
rial injury to U.S. import-competing industries.
Il botlt dumping ar:d injury are fbnnd. cllstolTls ofllcials are
instructe6 1o jeyy an
antidunrping dLrly. More than half of the cases brought in the
United kates resLrlt in
arttiduntping duties or an eKporter agreement to restrain its
export prices or volunres.
(By compariug the trvo colurnns in Figure 11.2 for nelv cases
initiated and ner.v anli-
dumping measures for 2005-2009. r,ve can see thai more than
half of the cases in most
of the other countries shown and in the rvorld overall result in
antidurrrping duties or
expOfier agreements.)
Recent research shows sonre clear patterns of efrects fion al1
tliis, Shortly after the
complaint is illed tire prices of tire exporters charged r.r'ith
dumping increase, prob-
ably' to tt'v lo reduce fhe final duniping rnargin. Export
quanfities decrease. because
of the higherprice and because of the uncertainty about the
outcorne of the case. If
antidurnping drities are imposed. the export quantities decrease
f'urther. by an average
of
23. T0percent,andoftentozero{aswenotedforthecaseshorvninFignre
lt.i).The
exporter also has an lncentive to raise its export price. The
anticlumping duties are
reduced u'eliminated il'a subsequent review by the Department
of Conrmerce tlncls
less or no dr"unping.
A rccent study sf 15* overail effects of imposing antidumping
dLrties concluded that
the United States suflbrs a loss of well-being of nearly $4
billion per year. Abor-rt half
of that arnount is deadrveigirt loss (like areas h t d in Figirre
8,5 or Figure 9.3). The
other halfis the transf-er to foreign exporters thai raise tlreil
plices {1ike area rr irr Figure
9.3). T"he net loss ic the United States could L"re lolver than
this. because tlre stui'ly
does not attenpt to quantiff tlie value of avoiding anl.harmlul
ellecfs fi'om preciator'.v
dumping (probably minimal) anci cryciical dr"unping {hard to
measl}re).
International Economics - Vol, j
l:,:
l'r.
Part Two Trriiie i'rli-r
to U.5. steel firms in six of these cases, and
the Department of Commerce found dumping
margins of up to 195 percent. ln the large case
24. involving cold-rolled steel, imports declined by
20 percent i* the months after the case was filed,
even though the U.S. firms eventually ,,lost,, the
{ase n hen nc iq;vry vtas founa-.
As prices remained relatively iow around the
world, the U.S. steel firms continued to find new
dumping. They brought five major cases in 2000
and six major cases in 2001. ln seven of these
cases, the international Trade Commission found
injury, and the U.S. qovernment imposed hefty
antidurnping duties, up to 369 percent.
{n early 2002 presirJent Bush imposed new
general tariffs of up to 30 percent on imports
of steel, and the number of new dumping cases
decreased. Under pressure from U.S. steeJ users
and an adverse WTO ruling, he removed these
tariffs in fate 2003. But th€n global steel prires
rose by more than 50 percent during 2004, jriven *;
by rapidly rising dernand in China and other
developinq countries. With strong world prices
continuing into ;009, there were f*uv new anti-
dumping suits in the United Stater.
Then, as the global crisis struck, the steei
industry went into recession in late 200g, extend-
ing into 2009. tn addition, the share of the U.S.
steel market served by imports inereased jn Jate
2008. The slor,vdown in giobal sieel demand
and increased import penetration restarted the
great machine that rolls out complaints about
foreign dumping of steel into the U.S. market.
The U.S. industry {iled seven new dumping cases
in 2009. ln six of these cases. fhina was the only
25. alleged dumper, and in the other one both China
a*d Taiwan were charged. ln two cases, the LJ.S.
lnternational Trade Commission failed to find
inju4r and the cases were dismissed. For the
other five cares, the U.S. governrnent imposed
antidumping duties. For the largest case, involv_
ing pipes and similar products used bv the oit
industry, the duties hit almost $3 billion of annuat
imports. Steel-remainr the U.S. antidumping king,
and the oil industry and many other users ,:J steel
in rhe United States pay the (higher) price.
Uilder culrent antidumping policies in the uniteii States and a
growing nurrber of
other countries. rve get the follotving results:
i. T'he procedrire is biased towarci finding dunrping.
2. T'he injury test considers only harn to impolt-compedng
producers. There is no
conside'ration of whether predation or sorne other sorrrcJ of
lnr- i6 the countrv
is in'oir.ed. There is rittre orno consideration of the benefits
t;.;,;;u;;,;;;l;;
lou;-priced inrports.
3' overall' the process is biaseri towarcl imposing anridurrping
dLrries, even tlrouglriliis r"rstrally lorn'ers the well-being of
the impJrting .uunrrji Anticigrlping duties
aiso generally lower world r.velf'are.
See tlie box 'Antidun.rping in Action" fbr specific examples that
illrsrrate these
conclusions.
If an exporting countrv's government believr's that an importing
26. country,s goveri-
ment violated the wro's rules in clecieiirig ta impos* an
antidlunping duryl it cair
ccmplain to the wro. B3,early 2011^ rhere had been 86 such
conipiaiits, including
42 abaut fhe lar.vs and procedures of the U.S. governfitent. as
of e'arl1,2{)ll. panefi
irad been convelled and reachecl decisions in ibout hall cf
thesr- g6 casrs. Lisualh.
,') ! .,
Chapter 11 Prrsiirg 6rplrr^t I "';
the panels fbund errofs by the itnporting countries. inclr"rding
rrsing inappropriate
procecliires. determiiliilg diiinpiirg margins (or subsid.v rates)
il1 a mallnel' iuconsis^
tent rvith WTO rLlles, uJO O.t*in]*ing iirlury using iticornplete
rnftrrri:ation or brased
analysis. lu some of the cases tlte irnporting coulltlv
impletnetrted changes {iike
,*r,oiiog the ilities) to bring their praitices in line rvith WfO
ruies, brtt itt otlters
rhey irai;e not (yet). Whiie tlie WTO rlispute settlerneni
procedure catt provide sottte
guall againstiuisuse o1'aiiticlulrping duties, lhe process is too
slorv to niinirnize {he
efl'ects of such it'tisuse.
27. Antidumping polic,r' starts oLrt sounrling like it is abottt uniair
exports' But a cioser
exanrination inrlicatesjhat sornetling else is going on.
Antidutntrtitrg politt: htrs l:'e(onrc
u ntuf or $,u1,.fix' inryart-t'ompeting prctlttcer,t in u grrtx'ing
numher of't'rtrtnffies to gttirt
1*t'pt.{)lection ugrsin,rt itrptsrts,-it,itlt theT.tsztul deutlx'eigllt
{'{}sts lo tltr tt'ttrkl und
ir.t th-e intpot.ting tr1,intt'r,. As sho*,n in Figure I1,2. the
avel'age antidumping duties
rinposeei against foreign exportLrrs are generallli very high.
mLrch hi-Uher thiur mrrst
regLrlar tarilfs, so tlre cleadtveight losses can be large.'fhere is
also tire cost of argiiitig
thi eases and gathering the daia to prove or disprove dunrping
and injury' In acldition'
inrport-comp.iing firtns use the threat of a durnping complaint
to prod exporters to
raise their prices an<i restrain their conrpetition-the
hurusstnertt elftt--even if nct
conipiaint is actualiy filed.
ti, ai'it-i iii ii *:{'iiii*
Althirugh there are exceptigns. the current practice of retaliatiot
agaittst dumpirrg
is usually bad for the r.r.orld and f'ol the irnportirtg conntry.r
Yet this practice is fLlllv
consistent r,r,ith current VT'O rules. Reform of the Wl"O ilrles
28. is an importatrt itetl ott
the ageucla for the cul-relt Doha Round of rnultilateral trade
negotiaticnts. Three pos-
sibiiities f'or refbrrn are iliscrissed rn the lollorving
paragraplrs.
Fitst. utttitlyurpting ut'tirsn.s r:utltl ht iiniletl t* .ri/tttttion.t in
v'hit'h pretfut{or.1' &urtp-
ing i.r pluu.vble. T'hii reftrrm rvould focus on the l"Ype of
durnping that is nrost likely
ro be bad for the rvorlci anci lor the irnporting couniry. lt
rvould also align anticlumpitrg
poltc3, u,ith antirrust policy (as it is callecl in the United
States; it is called competitiorl
polic5,, anlimonopoly policy" or sitlilar llames iu other
counfties)' Pro-conlpetition
policies usuailv to.t lri any predatory aciion to gain monopoly
power.
'I'his reform
ivould try, ro limit the scope of antiduntping polic,v. Hclvever.
the proceclnres in a
.Here is an exairple ip r,vhich re:aliaiir:n against persistent
cllmping cculd bring gairrs io the wi:oie
rvorlcj. lf tlre "corrr.riciecj" clLrr-nper aaat.., ij1 price
discrimiiiatiorl, conti{lues lo serve i:Oth trrarkets with a
sirrglo 1tr'ice ihai 15 not toc hiqit, arrd ts rcr'.;arllec1 by i-
;eitirrg ihe duty rerrorve-cl,
the 'uvoricj could erld up
29. bgiier off from tlre temporary puiritive use of tlre dL;ty. The
r,vorld ls betier cf{ in thc senrt'that ouiput i:
reCirected io the hor-.e-ccrur',iry buyers i,vho valued tire good
more hic;hly a1 the rnarqin. One exarnple of
thi: kind of gain is the oulcome of a li,5. durnping case aqainst
Kolean consutner elecltonrcs prcduceis,
r,r,hich leci tJa lcrvering ot the high prices Korearr consurrers
had been paying for these prociucis.
'lhis
is only one of a nlimber of pr:ssible ouicome!, and lhe otltetrs
are ust:ally bad for tlte trrctlrl. lot-
instanrc, iire durripe|s rlay rrto,,e their exltort-rnarket prclclr-
rciiotr to the ir'ilportinq ccuniry;lt some axtra
exl)e;se oi rn,crld tesoLrrce's. Cr llrey rnrqht .rl,iandon the
conlrovelslal fcireiqn rr;rrket lts not .d)rth the
bother if it is spciled by an.:ntir.1,.:r-npirrg riuty.'lhe issLie of
dur"npirrr.; is compiex. The ioxl qtr:es ihe
welfar-e results ihat seem n-rost iikeiy
-)
-J
Strti
Chapter 1 1 I'ir.shirlg E-tlxrri.r ''"r l
i i li .;i;,i:::"l1i
30. Cor,errtnrents promote or subsidize exports more often than
they reslrict oi' tax
exports.r Sorne government efforts to promote exports are not
cotttrcversial according
to intertational precepls {althoLrgh there are questions abcut
}rorv efiective they are),
C6vernlnent agencies like Expolt.Gov of the tJ.S. Department
of'Clommerce provide
foreign-nrarket researclr. inforn:ation on export proceciiires
anil fbreign governlllent
regulations, anrl help rvith contaeting buvers. Covernnent
agettcies sponsor export
promoiion e/ents like trade lairs and organized trips.
Covelnnlents establish export
processing zones that pernrit imports of nrateriais and
coinponents tvith easier custolns
procedures and low or-no taritl's.
Covermrents alsr: provide vadous lbrms o1'firrancial assistance
that beneflt their
expo*ers. ,11 r:11*.g-i;t9'1 sr.li:*i'-?r is contloversial because
it vtolates internalional nornls
about tarr trade. Our analysrs of'export subsidies will conclude
tlut export subsidies are
rrsr-raiiy bacl fiorn a rvorld point of vic:w'. However, the
ititernatiottal division of gains and
losses turns out fo be very dill-erent fitrl rvhat vou rvotild
expect just bv iistening to rr,'ho
firvors export subsidies and who complains about them. Export
subsidies are bad 1lir the
countries that use them. but are good fcr the count'ies that
cornplain atrortt tlteml
31. Governnrents sribsiclize exports in nranv ways. sotrle of theil
delitreratel3.' subtle to
escapg."detection. fhqy use taxpayer"s'money to gii,e iou-
interest loans to exporters 01'
their fbleign custolners. An exarnple is the Ll.S. Export-hlport
Bank, or Eximbank.
Founded in the 1930s. it has compromised its name by giving
easy' credit to U.S. exllort-
ers and their fbreign customers but not to U.S. intporters or
their tbreign sr:ppliers.
Covenlnrents also charge lolv prices on inputs (such as rarv
tnaterials or dotnestic trans-
port services) that go into procluction that r.vill be exportecl.
Ittcorne tax rules are also
trvisteci to give tax relief based on the value of goods or
services each firln ffiporls.
Expol'f suirsiclies are small on arerage. but they loom large in
certaitr proclucts
and fbt' r:efain companies. For instiriice. most Exirnbat'rk ioans
have been channeled
tou'ard a l'erv large U.S. firrns anri their customers. Boeing, in
particulat', has beetl
helped to exfi^a fbreign aircralt orriers by cheap Exir:bank
crcdii. lVore hroadl)'. the
biggt-'st export sutrsidies appiy to agdcultural products.
What are tlie efl"ects on tbe conntrv rvhose goiernnteltt off-ers
the export subsidy'/
Let's exarnlne the efJ-ects f(t a tttntperftive intlu.ttrr.i using
ollr standard supply-and-
demand ij"anervork. We rvill reach the fbllowilg conclusiotts:
l. Al export sLrbsidy expands exports and production clthe
32. subsidized product. I n fact,
the expr:rt subsidy can sr.vitch the proeluct lrorn being
importeci to being exported.
?. An export sLrbsidy iouers tlre price paid by ioleign buyers.
relative to the price that
iocal cotrsurlters pay lilr the produr:t. ln addition. for the
expoft subsidy to tvork as
jntended {the govemment subsidizes onlv exporls. not domestic
pirrchases). soitrethit:g
must prcr;ent local buyers from in:porting the product at tlie
lower fbreign price.
3. The export subsidlr reduces the net national lvell-Lreing of
the expoltittg countrv.
Lett exanrine tl:rec- cases to see the validity ot'tlrese
conclusions.
;lr ihe Urited Siaies tlrtr is not sr:rprisinr; because the Ii.-.
Constitution prohri--rits the'laxinq of expoits.
lnternational Economics - Vol. l
Part lwo l'r,i i., l',rliir
Exportable Froduct, Small Exporting Country
Figtire I1.3 shorvs a stnall coitntry. in this case a country
vr.hose exports of steei pipes
do not all'ect the world price of Sl00 per pipe (sranda;d lenglh).
Wirh tiee tracie ihe
finns in fhe country's conliletitive stee'l-pipeinriusrrv procluc"e
160 million pipcs pi:r.
year anrl export g0 millton (: lfi() - 70t. The government r:rithis
33. c6untrv then 4ecirJes
to otlbr to its flnlls an export subsidy ol'520 per pipe. The
revenue per pipe exprlrterl
then is $120, equal to the Sl0[i price paid bir foreign bu.vers
plLrs rhe$20 subsici_v. Ila
pipe firnr carl get 512{) f-ot each pipe exported. it witl noi sell
ro anv doniestic 6iryer ar
a price lo$'er than S 120" Of course. this is only pclssible
il'clonrestii buvr.rs cannot.just
buy importcd pipes fl'ont the rvorlci narket ar S100, Sonrerhing
nrr,rt t**p ihc crport
tnarket sepitrate lroni the domesiic nrarhet. ('l'his should souicl
larniliar-' it soLinds
likr: persistent dttttiping. In t'act. receiving an export subsicly
is auother rcasop wliy an
exporting firn wcruld exgage in dumping.)
Wltat are the other etlbcts of the export subsjclv in tlris casr'.,
Ilreienue per.unit
rises to $120 (for both export ancl iocal sales). the quantity
prorlur:ed iricreases
Irxport SuLrsidy.
Snrall lour.rtr3.,
Er:portable
Product
Price
i -. ..::
120
100
'i 60 190 Quantity
34. With fiee trade irt the n'cllti price olg100. this sllall
coonlry exporrs 90 nrillion steel pipes. If-the countr-i,
instead ot]-ers an expor'1 sirbsidy oi'520 per.unit exportecl,
revenue per Lrnit exported rises to Str20" and the expr.rr'trnu
finrs nrust receive this aLtiount as the se.lling price ti.oru
donrestic buvers as weli. Domestic production rises f.n:tr
l(r0 to 190 rnillion. dornestic consuntpiion flrils fi.orrr 70
to 50 nrillian, and the couilrlry exports 140 million llipe-s.
Domesiic producels
-uain surplus eqLral tc area r l-./ j g"
dorlesiic c{-)nsulllel"s lose sut'plus eqLuri to area e .r-.1, and
tlie cosi tc.r the gor.errrment of paS,ilg the erport subsir!1, is
area.l .r g .n *. Tite ner ioss in nationtl well-being becailse
olilre export siibsidy is area./plus area /r.
2ntl
AJ'
,4
i
Chapter 11 l'lr.;hiiiq E11,,rr.
ta 190 nrllioii. tf the donrestic price incleases to $120. local
elLrantiiy demzrnde6
ciecreases to 50 rnillion. euantity exported increases to i40
million {: t"qo * 5i}).
Who are the rvittners and losers in the exporting cointry]
Producers gain surplirs
equalloareas{' + f + g.Consuuerslosesuiplusequal to arcae
+./.Th;c*sttothe'
govermlent of pavirig the export subsidv is areas./'* g + h,
35. equal tri the export sub-
sidy of s20 per pipe times the 14i) rnillion pipes expoited n ith
the subsicilr
I'he export subsidy has increased exports and pioduction o1'this
proclirct, bur is it
.qood for the exportittg coLuttry'/ Llsing orir one-dollar. one-
vote r:retric. the answer
is no. Altel we catrcel out the rnatching gains and losses. tJie
net loss in national
rveil-being is areas.l and h. Area.l is the cr:**i;;:lc}tiq]r:
#f!err:"i of the export sub-
sidy. the iost consitltrer strplus lbr those consrlmers squeezecl
out of the niarket
rvhen the domestic price rises above tire wolld price. Area /r is
the ?:;r'r:{.:i;r..-iiilr-r
l'i''i'*q-i of tlie expot'l sLrbsicly, th* loss due to encouraging
clonestic productign that
has a resource cost gl'eater than the world price {the wori<i
stanclarci fbr efficient
ploeluctioli). Although tliese two triangles are on the opposite
sides of the graph.
because this is an exportable proclirct rather ihan an irnprirtabie
producf, tne-v- ir.e itre
sane kintls of eflects sitorvn for the irnport tarilf in Figure 8.4.
The ioss of natiilnal
well-being l-orthis small exporfing country is also a loss forthe
norl<1.
Exporlable Prodqct, Large Exporting Country
We'r'e just seen that a sniall exporting country han s itself by
oltbring an expor{ sutr-
sldv to its conrpetitive exporting industry. Perliaps the resulr
isdillereniif the exporring
countly is large enouqit to affeet the rvorld price. lriot so--in
fact, it nrav be 1t'orse.
36. Figure I 1.4 shcrvs this case. With fiee tarle the rvcrlcl price is
S 100 per pipe, ihen
tite exporting-coulltrY governt'nent oltbrs the exilort subsiel,v
o1'$20 per pipe , e,rportrug
f-inns rvant to export ltore to f;et r-r-lore o1'the su'hsirJy. To
get lbreigri .oirri,**i, to truy
rtrore 0f the e.xportecl proiittct. the exporting firms lnust lou'er
tli"* export price. And.
just as in the srlall-countrv case" domestic buyers in ihe
exporting counhy must end
up paying S20 more than the export price {assuming ihat rhey
canriot inrport fr-opr the
rest of ihe rvorid at the ne.v world price).
4/e can see the resulting equiiibrium more easily in panel 13 of
Lrigure ii.4. I.he
export sultsidy creates a wedge of S20 between the price lhat
fbreigri*inrporrers pay
and the revenue per unii that exporters receive. Tliis $20 wed-re
"fiis,' (verticatly.j ar
tlie quantigr traded of 110 million pipes. fhe new $,orld pricJis
sBg, the price paid
b}' the importers. The revenue per ulit fo the experr-ting firrns.
and the nerv piice iri tire
exporting courtr,v, is S 108.
Panei A of'Figure 1 l.'l shows rvhat is liapprring in the
exporting coglfry. At $ l0B
p*r pipe. pkrrluelion in the exporting corintry increases iiom l
60 nrillion to I 72 ntil-
lion, and domestic ct-rltsLttnption citcreases ll-orn 70 to 62
rnillion. euantitv exportecl
increases fionr 90 rniilion to I 10 iniliion.
As irr the smail-coutrtry ci1se, the export sr-rbsidy lias
37. increaseci dornestic produclion
and expotls ol pipes. What are ihe eil-ects on v,ell-being in the
exporting country,.)
Prortlrcer snrplus increases bv area. e * / * g. cionsurner
surplus taits uy irea i: * .1.
The exporl subsiciy costs tire governnlent $20 times tlie i10
ntjlliol griits exporteri.
l'his iJovernrnent cosr ol$2.2 billion is area /'-J-. g + h + i +,.i -
L k * lj- trt itrpanelA
{orareal * g * lt I n * r * I * zr inpanel B).
2s8 lnternationalEconomics - Vol. I
Part Two Tr,ulc lrdicl
i,': li :'"'l Export Subsidy. Lar:ge Country, Exportable Product
With tree trade at the u'orld price of $ 100, this large cou11tl'y
exports 90 millir:n steel pipes. If instead the- couritry.
offers arr export subsidy ofS20. its extra exports drive the
world price down to $88. The reveniie per unit received by
the exporling firnrs is $108, and domestic buyers pay a price of
S108. The net loss of well-Lleing folthe e.rporting
country is area./'+ h a- i + i + l, + i+ rn. The export subsidyboth
distorts donrestic ploduction and cortsuniptiorr
and rvorsens the exportin-t crruntry'.s international terql-c of
trade. The irlefficiency cleated lbr the
n'orld is a'rea/''i h i u.
The net loss to tire exporting countrv js the sliaded area in
panel A or B. 'I'his n
loss has three parts:
. The consumption effect {area /').
38. " T'he production effect iarea /r).
, The ioss due to the declirle jn the exporting country's
international terms of trac
(areai *.j + lt * ! * m : area ft + r + t + tt).
1'he export subsidy gives a good bargain to fbreign buyers.
However, their gain is
loss to the exporting country fron selling at a lorver world
price.
We can also use panel B to see the effect on rvorld well-being.
Area n * r * t
increased surplus for the impofiing counh'y. The net loss to the
world is the triangul;
area./'-t h * u. 'Ihis is the loss from too much tradrng of steel
pipes,
Switching an lmportable Product ints an Exportable Product
"lf you throw enough money at something, it will happen." This
adage applies t
expor-t slrbsidies. They can turrl an irnportable product into
one that is exported. Let
see i10w
A. The Domestic Market for Pipes
Price
r,i ...,, r .,.-, .:
108
100
88
108