Chapter 21: Q. 41 (page 523)
Why do you think labor standards and working conditions are lower in the low-income countries of the world than in countries like the United States?
Short Answer
Due to existence of abundant supply.
Chapter 21: Q. 41 (page 523)
Why do you think labor standards and working conditions are lower in the low-income countries of the world than in countries like the United States?
Due to existence of abundant supply.
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Get started for freeExplain how a subsidy on agricultural goods like sugar adversely affects the income of foreign producers of imported sugar.
In principle, the benefits of international trade to a
country exceed the costs, no matter whether the country is importing or exporting. In practice, it is not always possible to compensate the losers in a country, for example, workers who lose their jobs due to foreign imports. In your opinion, does that mean that trade should be inhibited to prevent losses?
Why do low-income countries like Brazil, Egypt, or Vietnam have lower environmental standards than high-income countries like the Germany, Japan, or the United States?
Economists sometimes say that protectionism is
the โsecond-bestโ choice for dealing with any particular problem. What they mean is that there is often a policy choice that is more direct or effective for dealing with the problemโa choice that would still allow the benefits of trade to occur. Explain why protectionism is a โsecond-bestโ choice for:
a. helping workers as a group
b. helping industries stay strong
c. protecting the environment
d. advancing national defense
Is international trade likely to have roughly the
same effect on the number of jobs in each individual
industry?
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