Macroeconomics : Principles For A Changing World

Good Essays

In reviewing the textbook, Macroeconomics: Principles for a Changing World, one topic of interest was Chapter 2, "Production, Economic Growth, and Trade". There were numerous articles relating to the assigned reading and class instructions. Three of these articles are summarized below, then linked to the class material. The chosen articles are "UK economy suffers slashed growth outlooks and lacklustre trade data" by Josie Cox and Ben Chu, "For Dignity and Development, East Africa Curbs Used Clothes Imports" by Kimiko de Freytas-Tamura, and "Thai growth revised upwards to 3.9 per cent". All of these sources focus on the aspects of economic growth and trade. The first article talks about how the United Kingdom's future of economic growth …show more content…

Two nations that trade with each other can both benefit, but the trade should have few, if any, inhibitions. The second article discusses how the eastern part of Africa is attempting to stop buying foreign clothing. It is not going well, as imports are a main source of goods for many Africans. However, many also believe that imported clothes inhibit not only business for local industries, but the people's dignity as well. In addition, people in the region are trying to export final goods, not just the resources for making them, and they believe that the United States is acting like a bully because of it. For countries with relatively low amounts of natural resources, the building of local businesses is necessary to aid development. Last year, East African countries tried raising tariffs on foreign outfits, but they paid the price for it. The United States, believing that trading with certain countries would not benefit them, threatened to remove a majority of the nations which were a part of the Africa Growth and Opportunity Act. This act was intended to help trade, and the United States wanted to prevent people from losing jobs and grant free access to small markets. This article shows that international trade can have practical limitations. The textbook explains that one of these limitations is the fact that while two countries can both benefit by trading with each other, excessive trade can

Get Access