The importance of an international trade to US and its most importing trading partner.

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Answer 1

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 38, Problem 1DQ

To determine

The importance of an international trade to US and its most importing trading partner.

Expert Solution & Answer

Explanation of Solution

International trade is the trading relationship between nations without borders. The international trade is such that the import and export of goods and services take place between the nations. The international trade allows the country to focus on the production of goods and services in which, they have the comparative advantage and export them to the top world market and import the goods and services from the countries, which produce the goods and services in which, the domestic country does not have any comparative advantage. This helps the country to maximize the benefit of the domestic country from consumption.

The importance of the international trade in the case of US, can be identified by looking into the share of the international trade in the US GDP. When we look at the share of the international GDP, around 14 percent of the US GDP is contributed by the international trade. It is a very small share when compared to that of the other industrialized countries such as Belgium and Netherlands, which have nearly 80 percent of GDP that is raised from the international trade.

The most important or the major trading partner of US is Canada. They were exporting 15 percent of the US imports and importing 20 percent of the US exports in the year, 2012. The easy access to markets and the lower transportation distance, all that helped the two top countries to become the major trading partners.

China was known to be the country with which, US had the largest trade deficit in the year, 2012. China was producing goods and services at cheaper costs, and it allowed the country to capture the world demand towards its products. This leads to the increased imports from China to US along with the shifting of many production houses from US to China. In regards to this, the total deficit that US had with China was a whopping $315 billion in the year, 2012.

Economics Concept Introduction

Concept introduction:

International trade: It is the trade between nations beyond borders. The market is open to the domestic players as well as the foreign players.

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Students have asked these similar questions

5. Suppose that the comparative-cost ratios of two products- baby formula and tuna fish-are as follows in the hypotheti- cal nations of Canswicki and Tunata: Canswicki: 1 can baby formula = 2 cans tuna fish 1 can baby formula = 4 cans tuna fish Tunata: In what product should each nation specialize? Explain why terms of trade of 1 can baby formula = would be acceptable to both nations. 25 cans tuna fish

3. The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization and trade, the optimal product mix for China is alternative B and for the United States is alternative U. LO20.2 a. Are comparative-cost conditions such that the two countries should specialize? If so, what product should each produce? b. What is the total gain in apparel and chemical output that would result from such specialization? c. What are the limits of the terms of trade? Suppose that the actual terms of trade are 1 unit of apparel for 1 unit of chemicals and 4 units of apparel for 6 units of chemicals. What are the gains from specialization and trade for each nation? China Production Possibilities Product A D F Apparel (in thousands) 30 24 18 12 Chemicals (in tons) 12 18 24 30 U.S. Production Possibilities Product R T. V Apparel (in thousands) hemicals (in tons) 10 8. 4 4 8. 12 16 20 p. 579

Figure: Trade 1 Price $200 175 150 Domestic Supply 500 7501,000:1,300 1,150 World Supply + Tariff World Supply Domestic Demand Quantity If the world price for the good in this figure is higher than the domestic price, a move to free international trade means that the domestic economy will become: O either a net importer or a net exporter of the good, but it is impossible to say which. O a net importer of the good. neither a net importer nor a net exporter of the good. a net exporter of the good.

Answer 2

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 38, Problem 1DQ

To determine

The importance of an international trade to US and its most importing trading partner.

Expert Solution & Answer

Explanation of Solution

International trade is the trading relationship between nations without borders. The international trade is such that the import and export of goods and services take place between the nations. The international trade allows the country to focus on the production of goods and services in which, they have the comparative advantage and export them to the top world market and import the goods and services from the countries, which produce the goods and services in which, the domestic country does not have any comparative advantage. This helps the country to maximize the benefit of the domestic country from consumption.

The importance of the international trade in the case of US, can be identified by looking into the share of the international trade in the US GDP. When we look at the share of the international GDP, around 14 percent of the US GDP is contributed by the international trade. It is a very small share when compared to that of the other industrialized countries such as Belgium and Netherlands, which have nearly 80 percent of GDP that is raised from the international trade.

The most important or the major trading partner of US is Canada. They were exporting 15 percent of the US imports and importing 20 percent of the US exports in the year, 2012. The easy access to markets and the lower transportation distance, all that helped the two top countries to become the major trading partners.

China was known to be the country with which, US had the largest trade deficit in the year, 2012. China was producing goods and services at cheaper costs, and it allowed the country to capture the world demand towards its products. This leads to the increased imports from China to US along with the shifting of many production houses from US to China. In regards to this, the total deficit that US had with China was a whopping $315 billion in the year, 2012.

Economics Concept Introduction

Concept introduction:

International trade: It is the trade between nations beyond borders. The market is open to the domestic players as well as the foreign players.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 38, Problem 1DQ

To determine

The importance of an international trade to US and its most importing trading partner.

Expert Solution & Answer

Explanation of Solution

International trade is the trading relationship between nations without borders. The international trade is such that the import and export of goods and services take place between the nations. The international trade allows the country to focus on the production of goods and services in which, they have the comparative advantage and export them to the top world market and import the goods and services from the countries, which produce the goods and services in which, the domestic country does not have any comparative advantage. This helps the country to maximize the benefit of the domestic country from consumption.

The importance of the international trade in the case of US, can be identified by looking into the share of the international trade in the US GDP. When we look at the share of the international GDP, around 14 percent of the US GDP is contributed by the international trade. It is a very small share when compared to that of the other industrialized countries such as Belgium and Netherlands, which have nearly 80 percent of GDP that is raised from the international trade.

The most important or the major trading partner of US is Canada. They were exporting 15 percent of the US imports and importing 20 percent of the US exports in the year, 2012. The easy access to markets and the lower transportation distance, all that helped the two top countries to become the major trading partners.

China was known to be the country with which, US had the largest trade deficit in the year, 2012. China was producing goods and services at cheaper costs, and it allowed the country to capture the world demand towards its products. This leads to the increased imports from China to US along with the shifting of many production houses from US to China. In regards to this, the total deficit that US had with China was a whopping $315 billion in the year, 2012.

Economics Concept Introduction

Concept introduction:

International trade: It is the trade between nations beyond borders. The market is open to the domestic players as well as the foreign players.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 38, Problem 1DQ

To determine

The importance of an international trade to US and its most importing trading partner.

Expert Solution & Answer

Explanation of Solution

International trade is the trading relationship between nations without borders. The international trade is such that the import and export of goods and services take place between the nations. The international trade allows the country to focus on the production of goods and services in which, they have the comparative advantage and export them to the top world market and import the goods and services from the countries, which produce the goods and services in which, the domestic country does not have any comparative advantage. This helps the country to maximize the benefit of the domestic country from consumption.

The importance of the international trade in the case of US, can be identified by looking into the share of the international trade in the US GDP. When we look at the share of the international GDP, around 14 percent of the US GDP is contributed by the international trade. It is a very small share when compared to that of the other industrialized countries such as Belgium and Netherlands, which have nearly 80 percent of GDP that is raised from the international trade.

The most important or the major trading partner of US is Canada. They were exporting 15 percent of the US imports and importing 20 percent of the US exports in the year, 2012. The easy access to markets and the lower transportation distance, all that helped the two top countries to become the major trading partners.

China was known to be the country with which, US had the largest trade deficit in the year, 2012. China was producing goods and services at cheaper costs, and it allowed the country to capture the world demand towards its products. This leads to the increased imports from China to US along with the shifting of many production houses from US to China. In regards to this, the total deficit that US had with China was a whopping $315 billion in the year, 2012.

Economics Concept Introduction

Concept introduction:

International trade: It is the trade between nations beyond borders. The market is open to the domestic players as well as the foreign players.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 38, Problem 1DQ

To determine

The importance of an international trade to US and its most importing trading partner.

Expert Solution & Answer

Explanation of Solution

International trade is the trading relationship between nations without borders. The international trade is such that the import and export of goods and services take place between the nations. The international trade allows the country to focus on the production of goods and services in which, they have the comparative advantage and export them to the top world market and import the goods and services from the countries, which produce the goods and services in which, the domestic country does not have any comparative advantage. This helps the country to maximize the benefit of the domestic country from consumption.

The importance of the international trade in the case of US, can be identified by looking into the share of the international trade in the US GDP. When we look at the share of the international GDP, around 14 percent of the US GDP is contributed by the international trade. It is a very small share when compared to that of the other industrialized countries such as Belgium and Netherlands, which have nearly 80 percent of GDP that is raised from the international trade.

The most important or the major trading partner of US is Canada. They were exporting 15 percent of the US imports and importing 20 percent of the US exports in the year, 2012. The easy access to markets and the lower transportation distance, all that helped the two top countries to become the major trading partners.

China was known to be the country with which, US had the largest trade deficit in the year, 2012. China was producing goods and services at cheaper costs, and it allowed the country to capture the world demand towards its products. This leads to the increased imports from China to US along with the shifting of many production houses from US to China. In regards to this, the total deficit that US had with China was a whopping $315 billion in the year, 2012.

Economics Concept Introduction

Concept introduction:

International trade: It is the trade between nations beyond borders. The market is open to the domestic players as well as the foreign players.

Answer 6

Chapter 38, Problem 1DQ

To determine

The importance of an international trade to US and its most importing trading partner.

Expert Solution & Answer

Explanation of Solution

International trade is the trading relationship between nations without borders. The international trade is such that the import and export of goods and services take place between the nations. The international trade allows the country to focus on the production of goods and services in which, they have the comparative advantage and export them to the top world market and import the goods and services from the countries, which produce the goods and services in which, the domestic country does not have any comparative advantage. This helps the country to maximize the benefit of the domestic country from consumption.

The importance of the international trade in the case of US, can be identified by looking into the share of the international trade in the US GDP. When we look at the share of the international GDP, around 14 percent of the US GDP is contributed by the international trade. It is a very small share when compared to that of the other industrialized countries such as Belgium and Netherlands, which have nearly 80 percent of GDP that is raised from the international trade.

The most important or the major trading partner of US is Canada. They were exporting 15 percent of the US imports and importing 20 percent of the US exports in the year, 2012. The easy access to markets and the lower transportation distance, all that helped the two top countries to become the major trading partners.

China was known to be the country with which, US had the largest trade deficit in the year, 2012. China was producing goods and services at cheaper costs, and it allowed the country to capture the world demand towards its products. This leads to the increased imports from China to US along with the shifting of many production houses from US to China. In regards to this, the total deficit that US had with China was a whopping $315 billion in the year, 2012.

Economics Concept Introduction

Concept introduction:

International trade: It is the trade between nations beyond borders. The market is open to the domestic players as well as the foreign players.

Answer 7

Chapter 38, Problem 1DQ

To determine

The importance of an international trade to US and its most importing trading partner.

Answer 8

Expert Solution & Answer

Explanation of Solution

International trade is the trading relationship between nations without borders. The international trade is such that the import and export of goods and services take place between the nations. The international trade allows the country to focus on the production of goods and services in which, they have the comparative advantage and export them to the top world market and import the goods and services from the countries, which produce the goods and services in which, the domestic country does not have any comparative advantage. This helps the country to maximize the benefit of the domestic country from consumption.

The importance of the international trade in the case of US, can be identified by looking into the share of the international trade in the US GDP. When we look at the share of the international GDP, around 14 percent of the US GDP is contributed by the international trade. It is a very small share when compared to that of the other industrialized countries such as Belgium and Netherlands, which have nearly 80 percent of GDP that is raised from the international trade.

The most important or the major trading partner of US is Canada. They were exporting 15 percent of the US imports and importing 20 percent of the US exports in the year, 2012. The easy access to markets and the lower transportation distance, all that helped the two top countries to become the major trading partners.

China was known to be the country with which, US had the largest trade deficit in the year, 2012. China was producing goods and services at cheaper costs, and it allowed the country to capture the world demand towards its products. This leads to the increased imports from China to US along with the shifting of many production houses from US to China. In regards to this, the total deficit that US had with China was a whopping $315 billion in the year, 2012.