3. Factors that influence international trade World trade has grown substantially in the last 60 years. For example, while world output grew at an annual rate of 3.8% per year between 1950 and 2003, world exports grew at 10.8% per year over the same time period. Which of the following help to explain the increase in international trade and finance since the 1950s? Check all that apply. International trade agreements such as the North American Free Trade Agreement (NAFTA) Services such as web conferencing and teleconferencing that facilitate international meetings Better high-speed rail lines Higher tariffs

3. Factors that influence international trade World trade has grown substantially in the last 60 years. For example, while world output grew at an annual rate of 3.8% per year between 1950 and 2003, world exports grew at 10.8% per year over the same time period. Which of the following help to explain the increase in international trade and finance since the 1950s? Check all that apply. International trade agreements such as the North American Free Trade Agreement (NAFTA) Services such as web conferencing and teleconferencing that facilitate international meetings Better high-speed rail lines Higher tariffs

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter20: International Trade

Section: Chapter Questions

Problem 11QP

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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.
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.
Why might Belgium, France, Italy, and Sweden have a higher export to GDP ratio than the United States?
can you help me rewording this paragraph? Since Ghana and Côte d'Ivoire have similar environment, level of education and institutional background, the imports, and exports from Ghana to Côte d'Ivoire and from Côte d'Ivoire to Ghana is result of intra industry trade. Intra industry trade is the trading of goods within the same industries from one nation to another. So, the trade between these two countries in this case cannot be explained by comparative advantage. It can be explained with economies of scale. Ghana's agricultural exports to Switzerland and Switzerland differ from Ghana in many aspects. Thus, indeed, trade between the two countries can be explained by a comparative advantage. Ghana can grow food at a lower opportunity cost than Switzerland and thus has a competitive advantage over food. In Switzerland, food processing was also rendered at higher opportunity costs. Therefore, by trading with each other, both countries can gain from trade and Ghana can export food to…
4. A graphical comparison of tariffs and quotas Aniva and kartaly are small countries that protect their economic growth from rapidly advancing globalization by limiting the import of televisions to 40 million. To this end, each country imposes a different type of trade barrier when the world price (Pw) is $2,000. In Aniva, the government decides to impose a tariff of $2,000 per television; in Kartaly, the government implements a quota of 40 million televisions. Assume that Aniva and Kartaly have identical domestic demand (Do) and supply (S) curves for televisions as shown on the following graph. Under these conditions, the price of televisions is $4,000 per television in each country. PRICE (Dollars per television) 10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 P 20 D₁ O True 0 10 20 30 40 50 60 70 QUANTITY (Millions of televisions) Country Aniva (tariff = $2,000) Kartaly (quota = 40 million televisions) O False ☆ ☆ Suppose that in both countries, demand for televisions rises…
4. A graphical comparison of tariffs and quotas Aniva and Kartaly are small countries that protect their economic growth from rapidly advancing globalization by limiting the import of televisions to 40 million. To this end, each country imposes a different type of trade barrier when the world price (Pw) is $2,000. In Aniva, the government decides to impose a tariff of $2,000 per television; in Kartaly, the government implements a quota of 40 million televisions. Assume that Aniva and Kartaly have identical domestic demand (Do) and supply (S) curves for televisions as shown on the following graph. Under these conditions, the price of televisions is $4,000 per television in each country. PRICE (Dollars per television) 10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 P Do 20 D₁ O True 0 10 20 30 40 50 60 70 QUANTITY (Millions of televisions) Country Aniva (tariff = $2,000) Kartaly (quota = 40 million televisions) O False ☆ ☆ Suppose that in both countries, demand for televisions rises…
4. A graphical comparison of tariffs and quotas Aniva and Kartaly are small countries that protect their economic growth from rapidly advancing globalization by limiting the import of televisions to 20 million. To this end, each country imposes a different type of trade barrier when the world price (Pw) is $3,000. In Aniva, the government decides to impose a tariff of $2,000 per television; in Kartaly, the government implements a quota of 20 million televisions. Assume that Aniva and Kartaly have identical domestic demand (Do) and supply (S) curves for televisions as shown on the following graph. Under these conditions, the price of televisions is $5,000 per television in each country. PRICE (Dollars per television) 10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 0 PW 10 Do D₁ ☆ ☆ ☆ 20 30 40 50 60 70 QUANTITY (Millions of televisions) 80 S 90 100 (?)
In the past 20 years the United States has entered into several "free trade agreements." The commonality of these free trade agreement has been making it easier for foreign companies to sell their goods in the United States (imports) and for American companies to sell their goods overseas (exports) What are the key points of specific trade agreement the United States has entered into in the last 25 years? And what other countries are involved and what kinds of trade restrictions and/or tariffs were changed as a result of that agreement.
7. A graphical comparison of tariffs and quotas Borzia and Ardon are small countries that protect their economic growth from rapidly advancing globalization by limiting the import of rugs to 20 million. To this end, each country imposes a different type of trade barrier when the world price (Pw) is $2,000. In Borzia, the government decides to impose a tariff of $3,000 per rug; in Ardon, the government implements a quota of 20 million rugs. Assume that Borzia and Ardon have identical domestic demand (Do) and supply (S) curves for rugs as shown on the following graph. Under these conditions, the price of rugs is $5,000 per rug in each country. PRICE (Dollars per rug) 10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 Do D₁ X 0 P... 10 20 30 50 60 70 80 40 QUANTITY (Millions of rugs) 90 S 100 (?)
Choose four countries. One country in North America, another country in Central America, another country in the Caribbean and another country in South America and indicate, using the gravity model, which factors should increase or reduce trade between those countries. After that, choose a country in Europe and indicate, using the Gravity Model, how the intensity of trade changes with five countries. You must take into account the concept of the gravity model and the factors that affect trade such as language, culture, trade agreements, among others. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Which of the following is not a part of the WTO's stance on trade ? a . Freer import policy for the cleanest foreign country must be matched by freedom of imports for polluter countries . b . Any trade barrier that reduces greenhouse - gas emissions is permissible c. Tariffs that are implemented to conserve natural resources must not be used merely to shut out foreign goods . d . Any tax on imports must not exceed that on import competing products. .
Draw a domestic supply and demand diagram for a product in which the United States does not have a comparative advantage. What impact do foreign imports have on domestic price and quantity? On your diagram show a protective tariff that eliminates approximately one-half of the assumed imports. What are the price-quantity effects of this tariff on ( a) domestic consumers, (b) domestic producers, and (c) foreign exporters? How would the effects of a quota that creates the same amount of imports differ?