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Ch19

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Noel Buensuceso
Noel Buensuceso
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International Trade, Comparative Advantage, and Protectionism
International Trade ,[object Object],[object Object]
Absolute Advantage Versus Comparative Advantage ,[object Object],[object Object]
Gains from Comparative Advantage ,[object Object],[object Object]
Exchange Rates ,[object Object],[object Object]
Exchange Rates ,[object Object],[object Object],[object Object]
The Sources of Comparative Advantage ,[object Object],[object Object]
Trade Barriers: Tariffs, Export Subsidies, and Quotas ,[object Object],[object Object],[object Object],[object Object]
The Case for Free Trade ,[object Object],[object Object]
The Case for Protection ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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Ch19

Hinweis der Redaktion

  1. The average tariff on imports into the United States is about 5 percent. A U.S. firm attempting to monopolize a domestic market violates the Sherman Antitrust Act of 1890, prohibiting predatory pricing. The Comprehensive Trade Act of 1988 contains clauses that permit the president to impose trade sanctions when investigations reveal dumping by foreign companies or countries.
  2. We can ban imports and give up the gains from free trade, acknowledging that we are willing to pay premium prices to save domestic jobs in industries that can produce more efficiently abroad. Or we can retrain workers for jobs with a future, or adopt programs to relocate people in expanding regions. An infant industry is a young industry that may need temporary protection from competition from the established industries of other countries in order to develop an acquired comparative advantage.