Log in
Economics
1
answer
0
watching
67
views

Do you think we should restrict imports from China because they manipulate their currency? Since we are spending less money on goods produced in China, it allows us to consume more of other goods and services. Doesn't that help create more jobs in some of the industries here?

Watch
1
answer
0
watching
67
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Anne Gillian Duero
Anne Gillian DueroLv10
29 Sep 2019

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

4. (Part A) Suppose the USA and China are considering whether to engage in trade. Here are the production possibilities of the two countries before trade occurs:

Table 1. Production of Apparel or Chemicals in the USA and China.

The Opportunity Costs of producing one product or the other are displayed.

1000’s of Tons of

Apparel Units Chemicals

Nation Produced or Produced

USA 50 or 150

China 30 or 60

Which nation has the comparative advantage in producing Apparel? Which nation has the comparative advantage in producing chemicals? Explain how you arrived at these conclusions.

Explain the Law of Comparative Advantage, and its application to trading relationships between nations. In the example above, if the two nations decide to engage in mutually beneficial trade, which nation should specialize in producing Apparel and which nation should specialize in producing Chemicals, and Why?

Suppose a trade proposal is made to exchange 1 thousand units of apparel for 2.5 tons of chemicals. Would these terms of trade (1 Apparel : 2.5 Chemicals ) be acceptable to, and mutually beneficial for, both the USA and China as trading partners? Why or why not?

What are the “payoffs” from open trade? What are some of the limitations associated with open trade?

4. (Part B) Suppose the USA and EU are trading, and currencies must be exchanged as goods/services are imported and exported between the two regions. The $USD is the currency of the USA, and the €Euro is the currency of the EU.

a. Are the following statements correct or incorrect? Why or why not?

“If the USA is exporting its goods to the EU, these exports from the USA to the EU create a demand for €Euros in the Currency Exchange Market for €Euros.”

“If the USA is importing goods from the EU, these imports to the USA from the EU create a supply of $USD in the Currency Exchange Market for $USD’s.”

“If the EU is importing goods from the USA, these imports to the EU from the USA create a demand for $USD in the Currency Exchange Market for $USD’s.”

Throughout your answer to any of these other questions, use graphs as needed (all axes and functions completely labeled) to accompany your written analyses.

Using the concepts of absolute and comparative advantage answer the questions.

1) Why does the U.S. trade goods with other countries that they can produce themselves? Wouldn't the U.S. be better off producing the goods themselves?

2) In your opinion, has the U.S. outsourced too much? Explain why you believe that the U.S. has or has not outsourced too much keeping in mind the reasons why corporations outsource, and the benefits derived from this strategy.

Please review the following resources when forming your opinion; you are free to do as much research as you want however your opinion should be based on data and not assumptions!

For example, just because your cousin lost his job because it was sent overseas doesn't necessarily mean that there was an overall negative economic impact.

- Economics of Outsourcing Policy http://www.plu.edu/~econ331/home.html The Case for Outsourcing Jobs http://money.cnn.com/2012/09/14/news/economy/outsourcing-jobs/index.html

- Outsourcing for Dummies (and the Willfully Ignorant) http://www.forbes.com/sites/danikenson/2012/07/11/outsourcing-for-dummies-including-the-willfully-ignorant/#39516eaa6821 US Manufacturers

- Have Three Million Available Jobs To Fill http://www.infowars.com/us-manufacturers-have-three-million-available-jobs-to-fill/

- U.S. Trade: Exports and Imports Decline Sharply in January 2009 http://www.calculatedriskblog.com/2009/03/us-trade-exports-and-imports-decline.html

Please take a look at how imports and exports mirror each other.

Using the concepts of absolute and comparative advantage, answer the questions:

Why does the U.S. trade goods with other countries that they can produce themselves?

Wouldn't the U.S. be better off producing the goods themselves?

In your opinion, has the U.S. outsourced too much? Explain why you believe that the U.S. has or has not outsourced too much keeping in mind the reasons why corporations outsource, and the benefits derived from this strategy.

Please review the following resources when forming your opinion; you are free to do as much research as you want however your opinion should be based on data and not assumptions. For example, just because your cousin lost his job because it was sent overseas doesn't necessarily mean that there was an overall negative economic impact.

Economics of Outsourcing Policy: http://www.plu.edu/~econ331/home.html

The Case for Outsourcing Jobs: http://money.cnn.com/2012/09/14/news/economy/outsourcing-jobs/index.html

Outsourcing for Dummies: http://www.forbes.com/sites/danikenson/2012/07/11/outsourcing-for-dummies-including-the-willfully-ignorant/#39516eaa6821

US Manufacturers Have Three Million Available Jobs To Fill: http://www.infowars.com/us-manufacturers-have-three-million-available-jobs-to-fill/

U.S. Trade: Exports and Imports Decline Sharply in January 2009: http://www.calculatedriskblog.com/2009/03/us-trade-exports-and-imports-decline.html

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in