Which statement matches the evidence presented in the trade and inequality podcast best? Trade makes the economy more efficient but can increase inequality Trade makes the economy less efficient but can decrease inequality Trade makes the economy less efficient and can increase inequality Trade makes the economy more efficient and can decrease inequality

Which statement matches the evidence presented in the trade and inequality podcast best? Trade makes the economy more efficient but can increase inequality Trade makes the economy less efficient but can decrease inequality Trade makes the economy less efficient and can increase inequality Trade makes the economy more efficient and can decrease inequality

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter20: International Trade

Section20.1: International Trade Theory

Problem 3ST

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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.
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?
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.
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?
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?