PRINC OF ECONOMICS PKG >CUSTOM<
7th Edition
ISBN: 9781305018549
Author: Mankiw
Publisher: CENGAGE C
expand_more
expand_more
format_list_bulleted
Question
Chapter 32, Problem 1PA
To determine
The reason behind the high trade surplus of Japan.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
You work for a Nova Scotia Company trying to successfully enter the cranberry market in Australia. Analyze the entry country (Australia) based on the following;
What are the major exports, dollar value, and trends? What are the major imports, dollar value, and trends? Does the entry country have a surplus or deficit for trade? What are the exchange rates? Are there any restrictions on currency trade?
You should also consider sweat shops, skilled labor, employee unrest, political and social activists and labor unions in your analysis.
Assume that you have been hired by an International Organization to be consulted on various issues that the country Motherland faces. For this exercise, assume that Motherland is a small agricultural economy. The biggest trading partner of Motherland is the United States. Unlike Motherland, the United States is a large industrial country.
Assume Motherland imports electronics from the United States. The government of Motherland is considering to impose quotas on these electronics imports coming from the United States. Would you recommend it? Explain your answer. In your explanation, distinguish the effect on the consumers of electronics, the domestic producers of electronics and the government.Your explanation should not exceed 200 words.
Assume that you have been hired by an International Organization to be consulted on various issues that the country Motherland faces. For this exercise, assume that Motherland is a small agricultural economy.The biggest trading partner of Motherland is the United States. Unlike Motherland, the United States is a large industrial country
Motherland imports electronics from the United States. The government of Motherland is considering to impose quotas on these electronics imports coming from the United States. Would you recommend it? Explain your answer. In your explanation, distinguish the effect on the consumers of electronics, the domestic producers of electronics and the government.Your explanation should not exceed 200 words.
Chapter 32 Solutions
PRINC OF ECONOMICS PKG >CUSTOM<
Knowledge Booster
Similar questions
- The United States has an absolute advantage in producing sugar over all of the other sugar producing countries. Does this fact mean that we should not import any sugar from the other countries?arrow_forwardWeek 6: Question Number 6.2. You are an IMF official going to a country whose export earnings are not able to pay for imports. The government has requested a loan from the IMF. Which areas would you recommend the government to cut: (1) education, (2) salaries for officials, (3) food subsidies, and/or (4) tax rebates for exporters?arrow_forwardSuppose Country X experienced a decline in the trade of manufactured goods. To account for this, Country X had to become a borrower of foreign funds. For the next 10 years, Country X used the borrowed funds to improve the nation's treatment plants and to develop efficient better transit system. This created jobs in its workforce. The country began to repay its debt that it had borrowed. Which of the following contributed most to this country's successful economic recovery? the creation of a trade deficit through more aggressive buying of imports ensuring that larger borrowing reduced the need for more private savings O global policies of low interest rates charged on funds borrowed by governments O ensuring borrowed funds were invested in long-term productive economic assetsarrow_forward
- Imagine you are an advisor to your government and that your economy faces a problem of declining terms of trade for its exports. Discuss the possible policy changes for the economy and any other strategies you would recommend to avoid declining terms of trade in the future.arrow_forwardLast year, a country's GDP was $60 billion, and its level of trade was 15 %. This year, the country's GDP increased by $11 billion, while the value of exports remained unchanged. Calculate the country's level of trade this year. Enter your answer in the box and round to one decimal place if necessary. Answer 2 Points % Keypad Keyboard Shortcutsarrow_forwardThe United States has enjoyed a trade surplus during the last two decades.True or Falsearrow_forward
- Consider an economy that used to operate in free trade, with total market surplus of $120 million. As a result of the application of a tariff (tax on imports), the economy experiences deadweight loss of $8 million. That means that total market surplus for this nation is now $ million. Enter only a number and decimal point/negative sign as needed. Round your answer to two decimal places as necessary. Notice that the answer is in terms of millions, so if you think total market surplus is now 999 million (999,000,000), enter only 999 in the blank.arrow_forwardA mercantilist nation is focused on achieving a favorable balance of trade. To do this, it aims to export more than it imports, thereby accumulating wealth. Considering this goal, which of the following scenarios best illustrates a successful mercantilist policy? A) The nation imports luxury goods in large quantities.B) The nation exports goods equivalent to its imports.C) The nation's exports exceed its imports, leading to an influx of gold and silver.D) The nation focuses on self-sufficiency and reduces both imports and exports.arrow_forwardIf China has a trade surplus with the United States, it is a good thing for the U.S economy? True or Falsearrow_forward
- An expected decline in demand for consumer goods in the U.S. means there will be less imports into the U.S. Less imports in the U.S. translates to a reduction in exports from China, which is significant as the U.S. has the largest GDP of all nations. As the U.S. is reducing imports, it will be purchasing less goods from China, which means the U.S. will be giving up less dollars to purchase Chinese goods with the yuan. Will a decline in demand for consumer goods in the U.S. impact China's economy given the above information? If so, how would that affect the dollar-yuan exchange rate?arrow_forwardFor any country that allows free trade, the domestic price is equal to the world price. both producers and consumers in that country gain when domestic products are exported, but both groups lose when foreign products are imported. domestic quantity demanded is greater than domestic quantity supplied at the world price. domestic quantity demanded is equal to domestic quantity supplied at the world price.arrow_forwardSuppose you are hired as a consultant by the government to determine the impact of trade policies. The government is suggesting a 10% nominal tariff on imported cars in order to limit competition against domestically assembled cars that incorporates only about 20 percent of domestic inputs in its total inputs. Discuss nominal tariffs and effective tariff rates. How much is the effective tariff rate? Why is the effective tariff rate different than the nominal tariff rate? Suppose the currency depreciation would lead to a higher price in the free market. However, the government wants to maintain the same amount of final price after tariffs. Determine the impact on the nominal tariff rate.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning