Why are some economists who favor free trade concerned about the proliferation of regional trad agreements? Regional trade agreements make the economies of partner nations more independent from each other. O Regional trade agreements may limit trade from outside the regions in an agreement. O Regional trade agreements terms can conflict with those of the Anti-Tariff Act. O Regional trade agreements result in job losses for workers in the participating countries.

Why are some economists who favor free trade concerned about the proliferation of regional trad agreements? Regional trade agreements make the economies of partner nations more independent from each other. O Regional trade agreements may limit trade from outside the regions in an agreement. O Regional trade agreements terms can conflict with those of the Anti-Tariff Act. O Regional trade agreements result in job losses for workers in the participating countries.

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 54CTQ: Trade has income distribution effects. For example, suppose that because of a government-negotiated...

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Similar questions

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?
True or False: The source of comparative advantage must be natural elements like climate and mineral deposits. Explain.
In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10 tons of rubber or 40 radios. Who has the absolute advantage in the production of rubber or radios? How can you tell? Calculate the opportunity cost of producing 80 additional radios in Japan and in Malaysia. (Your calculation may involve fractions, which is fine,) Which country has a comparative advantage in the production of radios? Calculate the opportunity cost of producing 10 additional tons of rubber in Japan and in Malaysia. Which country has a comparative advantage in producing rubber? In this example, does each country have an absolute advantage and a comparative advantage in the same good? In what product should Japan specialize? In what product should Malaysia specialize?
Trade has income distribution effects. For example, suppose that because of a government-negotiated reduction in trade barriers, trade between Germany and the Czech Republic increases. Germany sells house paint to the Czech Republic. The Czech Republic sells alarm clocks to Germany. Would you expect this pattern of trade to increase or decrease jobs and wages in the paint industry in Germany? The alarm clock industry in Germany? The paint industry in Czech Republic? The alarm clock industry in Czech Republic? What has to happen for there to be no increase in total unemployment in both countries?
Does intra-industry trade contradict the theory of comparative advantage?
Brazil can produce 100 pounds of beef or 10 autos. In contrast the United States can produce 40 pounds of beef or 30 autos. Which country has the absolute advantage in beef? Which country has the absolute advantage in producing autos? What is the opportunity cost of producing one pound of beef In Brazil? What is the opportunity cost of producing one pound of beef in the United States?
How do trade barriers affect the average Income level in an economy?