Chapter 20: Q. 6 (page 490)
Do the jobs for workers in low-income countries that involve making products for export to high-income countries typically pay these workers more or less than their next-best alternative?
More.
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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?
What is dumping? Why does prohibiting it often work better in theory than in practice?
Microeconomic theory argues that it is economically rationale (and profitable) to sell additional output as long as the price covers the variable costs of production. How is this relevant to the determination of whether dumping has occurred?
Why might a tax on domestic consumption of resources critical for national security be a more efficient approach than barriers to imports?
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