Economics (MindTap Course List)
13th Edition
ISBN: 9781337617383
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 33, Problem 2QP
To determine
The difference between
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Students have asked these similar questions
"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 I respond to this statement?
Which of the following is not a true statement about gains from trade?
Select the correct answer below:
If a country experiences gains from trade, it is better off than it would be without
trade.
Gains from trade means an increase in total surplus.
Gains from trade are typically not distributed equally between consumers and
producers.
Gains from trade only benefit producers.
Since 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?
Chapter 33 Solutions
Economics (MindTap Course List)
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Similar questions
- 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_forwardAssume that you were a small country, what would you rather have a comparative or absolute advantage with trading? Explain your reasoning.arrow_forwardThe demand for cameras in a certain country is given by D=8000−30P, where P is the price of a camera. Supply by domestic camera producers is S=4000+10P. Suppose that world price of a camera is $150. If this country decides to trade, which of the following is true? Group of answer choices 3000 cameras will be exported Domestic production of cameras will decrease by 500 Domestic production of cameras will increase by 500 2000 cameras will be importedarrow_forward
- Questions D,E,F.arrow_forwardCan I have some help with this practice question for economics? What are the gains from trade, and explain why countires might still decide to trade even if no country had a comparative advantage?arrow_forwardWhich country has comparative at producing good x. How can you tell. Which country has a comparative advantage at producing yarrow_forward
- Choose four countries. One country in North America, another country in Central America, another country in the Caribbean and another country in South America and indicate, using the gravity model, which factors should increase or reduce trade between those countries. After that, choose a country in Europe and indicate, using the Gravity Model, how the intensity of trade changes with five countries. You must take into account the concept of the gravity model and the factors that affect trade such as language, culture, trade agreements, among others. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwarddo you think countries with distinctively different cultural, historical, and economic histories can effectively enter into a trade agreement? (at least one paragraph). Select one regional trading bloc and discuss the economic motivations for that group of countries to form an agreement. (at least one paragraph) Do you think the countries in the trading bloc you selected are likely to have cross-cultural similarities or differences? Explain. (at least one paragraph).arrow_forwardUse the table to answer the question. Apples Bananas Country A 500 1,500 Country B 800 1,600 If all resources of Country A and Country B were dedicated toward the production of either apples or bananas, the maximum production of each is summarized in the table above. In order for both countries to benefit from trade, which country should specialize in banana production, and why?arrow_forward
- Finally, Canada and Australia are both English-speaking countries with not-too dissimilar population sizes. However, Canada’s trade is twice as large as that of Australia’s. to what extent, does comparative advantage help explain this?arrow_forwardMake the case in favor of international trade based on comparative advantage. Who are the winners and who are the losers when tariffs or quotas are implemented? Make the case for restricting international trade. Explain your answers thoroughly.arrow_forwardAccording to the theory of Comparative Advantage, participation in international trade will always leave a country better off. Group of answer choices True Falsearrow_forward
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