Chapter 7, Problem 10SQ

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.

Naked Economics: Undressing the Dismal Science Book by Charles Wheelan   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? In short, with which of the below statements, in one form or the other, DOES NOT match the ideas expressed by Wheelan in this chapter?  A) There are no losers in international trade and globalization. Within each economy engaging in trade all workers in all economies gain from trade.    B) Trade lowers the cost of goods for consmers, which is the same as raising their incomes.   C) Trade is based on voluntary exchange.   D) The comparative advantage of workers in poor countries is cheap labor.

How important is international trade to the U.S. economy? In terms of volume, does the United States trade more with the industrially advanced economies or with developing economies? What country is the United States’ most important trading partner, quantitatively?