Macroeconomics (Fourth Edition)
4th Edition
ISBN: 9780393603767
Author: Charles I. Jones
Publisher: W. W. Norton & Company
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Question
Chapter 19, Problem 9E
To determine
Migration in the apple and computer economy.
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The book states “The pain caused by the movement toward a free trade regime is a short-term phenomenon, while the gains from trade once the transition has been made are both significant and enduring”. Unions in developed nations often oppose imports from low-wage countries because of the negative impacts that occur to the workers. I personally do not believe that such competition is unfair. The union’s argument is in the best interest of the people they represent, and not the country as a whole. If imports are stopped from low-waged countries, it would force developed countries to use and produce local goods and jobs. With more jobs and the use of more local goods, this gives an advantage to the union workers, but leaves our country at a disadvantage. Some disadvantages include the price of goods increasing, other countries not wanting to work with us, we will lose out on products that we can’t make, and it’s ultimately not in the best interest for economic growth in the long run.…
Which of the below statements does NOT reflect the ideas expressed by the author Charles Wheelan in the chapter titled, "Trade and Globalization," in the book, Naked Economics: Undressing the Dismal Science?
Group of answer choices
A majority of U.S. jobs lost since 2000 have been to technology and not to China, Vietnam or Mexico.
Nearly all theory and evidence suggest that the benefits of international trade far exceed the costs.
Tariffs and other barriers to imports will bring manufacturing jobs back into the U.S., exactly as President Trump promised.
Trade creates losers, like any kind of market.
Listen carefully to the podcast titled 'Is America losing faith in Free Trade?. What would help
explain why support for trade liberalisation in places such as the United States has decreased in
the past decade even though economists argue free trade is beneficial for the economy?
The benefits and costs of trade are unequally distributed within society.
The benefits of free trade tends to fall on people who are less well off, who either lose their jobs or lose
wages to other countries which angers the wealthy investors.
O The wage gap between high and low-skilled workers is closing which decreases levels of productivity.
The benefits of free trade tend to fall on people who are less well off, who either lose their jobs or lose
wages to other countries.
Chapter 19 Solutions
Macroeconomics (Fourth Edition)
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Similar questions
- According to the Heckscher-Ohlin model, free trade would lead to an equalization of wage rate internationally. Explain why we do not observe that result in the real world, where, for instance, there is great discrepancy in wage rate between developed and developing countriesarrow_forwardSince many companies cut jobs or outsource overseas when they cannot compete with foreign companies, does that mean free trade is a bad idea and does not serve our interests?arrow_forwardLeontief’s paradox is an example of testing a trade model using actual data observations. If Leontief had observed that the amount of labor needed per $1 million of U.S. exports was 392 person-years instead of 182, would he have reached the same conclusion? Explain.arrow_forward
- 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?arrow_forwardUsing the Heckscher-Ohlin trade model, we would expect that in a nation that is labor abundant that exports potatoes, an increase in the quantity of labor would... A) Worsen the terms of trade for that nation B) Improve the terms of trade for that nation C) Raise wages in that nation D) Both B and Carrow_forwardThe country of Autarkistan is currently closed off from the world and engages in no international trade. Like the rest of the world, it produces and consumes (only) two goods, textiles and machines, using labor and capital. The textile industry employs more labor, per unit of capital, than does the machine industry. Being poor, Autarkistan has far less capital per worker than does the rest of the world. Now suppose that Autarkistan opens up to free international trade with the world. Using the H-O model, what will happen to employment of labor in the machine industry in Autarkistan? Group of answer choices Rise Not Change Cannot tell. Fallarrow_forward
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