8 If the United States creates a trade agreement with Vietnam, we know thatVietnam will benefit, but trade with a developing country will not help theUnited States.Vietnam can get no benefit because its workers are not as productive asb)those in the United States.Vietnam can get no benefit because its businesses have less capital thanc)those in the United States.d) Vietnam and the United States can both benefit.The physical and cultural differences between the two countries are too greate)for them to benefit from trade.

The United States and Vietnam have made peace agreement from past few decades, but they have…

If the United States creates a trade agreement with Vietnam, we know that Vietnam will benefit, but trade with a developing country will not help the United States. b) Vietnam can get no benefit because its workers are not as productive as those in the United States. c) Vietnam can get no benefit because its businesses have less capital than those in the United States. d) Vietnam and the United States can both benefit. e) The physical and cultural differences between the two countries are too great for them to benefit from trade.

If the United States creates a trade agreement with Vietnam, we know that Vietnam will benefit, but trade with a developing country will not help the United States. b) Vietnam can get no benefit because its workers are not as productive as those in the United States. c) Vietnam can get no benefit because its businesses have less capital than those in the United States. d) Vietnam and the United States can both benefit. e) The physical and cultural differences between the two countries are too great for them to benefit from trade.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter18: International Trade And Comparative Advantage

Section: Chapter Questions

Problem 7DQ

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Similar questions

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.
In principle, the benefits of international trade to a country exceed the costs, no matter whether the country is importing or exporting. In practice, it is not always possible to compensate the losers in a country, for example, workers who lose their jobs due to foreign imports. In your opinion, does that mean that trade should be inhibited to prevent the losses?
If opening up to free trade would benefit a nation, then why do nations not just eliminate their trade barriers, and not bother with international trade negotiations?
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.