Answered: discuss relationship distance and…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter34: Globalization And Protectionism

Section: Chapter Questions

Problem 35RQ: Who gains and who loses from trade?

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Similar questions

Occasionally, a government official will argue that a country should strive for both a trade surplus and a healthy inflow of capital from abroad. Explain why such a statement is economically impossible.
Who gains and who loses from trade?
If trade increases world GDP by 1 per year, what is the global impact of this increase over 10 years? How does this increase compare to the annual GDP of a country like Sri Lanka? Discuss. Hint To answer this question, here are steps you may want to consider. Go to the World Development Indicators (online) published by the World Bank. Find the current level of World GDP in constant international dollars. Also, find the GDP of Sri Lanka in constant international dollars. Once you have these two numbers, compute the amount the additional increase in global incomes due to trade and compare that number to Sri Lankas GDP.
You just overheard your friend say the following: Poor countries like Malawi have no absolute advantages. They have poor soil, low investments in formal education and hence low-skill workers, no capital, and no natural resources to speak of. Because they have no advantage, they cannot benefit from trade. How would you respond?
Describe a scenario in which a trade surplus benefits an economy and one in which a trade surplus is economy in an economy that performs poorly. What key factor or factors are making the difference in the outcome that results from a trade surplus?
how can countries attain/account for trade equilibria when involved in trade transactions?
How does trade intensity, trade complementary index, and revealed comparative advantage assist countries in making trade decisions?
Trade creation results in? Select one: a) Greater revenue for the government b) Reduced exports c) Goods formerly produced domestically now imported d) increased tariffs e) Decreased productions
True or False: Comparative advantage refers to a country's ability to produce a good or service at a lower opportunity cost than another country. Don't use Ai

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discuss relationship distance and Income with trade