4-Trade with CubaAll SectionsFree trade rearranges the economy, it creates jobs in some sectors and destroys them in others. Suppose we open up with free trade with Cuba. This eliminates 20,000 jobs in the American tobacco and sugar industries, whereas it causes 5,000 more jobs in the car industry, In Cuba, it creates 15,000 jobs in the tobacco and sugar industries and costs 5,000 jobs in the car industry. The price of sugar and cigars falls in the US, and the price of cars falls in Cuba as a resultShould the US. welcome free trade in this situation? Should Cuba? 4-Trade with CubaAll SectionsFree trade rearranges the economy; it creates jobs in some sectors and destroys them in others. Suppose we open up with free trade with Cuba. Thiseliminates 10,000 jobs in the American tobacco and sugar industries, whereas it causes 5,000 more jobs in the car industry. In Cuba, it creates 15,000jobs in the tobacco and sugar industries and costs 5,000 jobs in the car industry. The price of sugar and cigars falls in the U.S., and the price of cars fallsin Cuba as a result.Should the U.S. welcome free trade in this situation? Should Cuba?

Free trade is defined as a situation wherein countries can freely trade without any restrictions, no…

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Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 5CQQ

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4-Trade with Cuba All Sections Free trade rearranges the economy, it creates jobs in some sectors and destroys them in others. Suppose we open up with free trade with Cuba. This eliminates 20,000 jobs in the American tobacco and sugar industries, whereas it causes 5,000 more jobs in the car industry, In Cuba, it creates 15,000 jobs in the tobacco and sugar industries and costs 5,000 jobs in the car industry. The price of sugar and cigars falls in the US, and the price of cars falls in Cuba as a result Should the US. welcome free trade in this situation? Should Cuba?

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