International Trade Discussion Essay Questions

International Trade Discussion Essay Questions

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What is the difference between comparative and absolute advantage?

Visit the following CIA Factbook website (Links to an external site.), select two countries of interest to you (other than U.S.), select the economy section, scroll down and locate at least five of the country’s major exports. Are these exports indicative of an absolute or comparative advantage?

Using the same CIA Factbook Website above, what are the major exports for the U.S.

Should we expect goods to be the same price all over the world? What factors might make a Big Mac more expensive in one country relative to another?

Visit the debt clock website at http://www.usdebtclock.org/ (Links to an external site.) and locate the on the U.S. Trade Deficit? What is the deficit indicated? In percentage terms approximately how much of this deficit is with China?

Visit the following Yahoo Currency Exchange site (Links to an external site.) and determine how much a $200 dress in N.Y. would cost a British visitor in Pounds?

What are the benefits of free trade? Protectionism (e.g., tariffs & quotas)? Which position do you lean toward? Explain your perspective and after you post your narrative, reply to at least two other students’ comments. Explain why you agree, or better yet, find others that take a different position and explain why you disagree.

also please reply for those two students: Dalia 1- The difference between comparative and absolute advantage is that comparative advantage is based upon producing goods at a lower opportunity cost while the absolute advantage is based on producing at a smaller input.2- Argentina- sunflower seeds, lemons, soybeans, grapes, corn, tobacco, peanuts, tea, wheat, and livestock. I have to say that the goods that Argentina trades and is abundant in the show that their country has quite an absolute advantage rather than comparative. Belgium- sugar beets, fresh vegetables, fruits, grain, tobacco, beef, veal, pork, and milk. The goods that Belgium has shown that their country has a comparative advantage rather than absolute.3- According to the CIA Factbook Website, exports in the United States were as follows: agricultural products (soybeans, fruit, corn) 9.2%, industrial supplies (organic chemicals) 26.8%, capital goods (transistors, aircraft, motor vehicle parts, computers, telecommunications equipment) 49.0%, consumer goods (automobiles, medicines)4- No, we should not expect goods to be the same price all over the world for various reasons.

For example, the cost of items and ingredients in certain parts of the world are going to be different due to importing and farming and availability and climate. Labor costs will also be a major factor. Economies and taxes and regulations can also determine the price.5- The trade deficit is currently around $871 billion; approximately 47 percent of this trade deficit is with China.6- 157.2 pounds.7- Free trade is necessary for an efficient and competitive economy. Free trade ensures there is a multitude of products which in turn allows the cheapest prices for consumers. Protectionism is typically used to provide stability and balance in a market while restricting the prices of foreign goods through tariffs. Protectionism allows for a greater dependence on domestic goods rather than foreign goods. I believe there must be a small amount of protectionism to ensure domestic companies stay profitable but not to the point of a trade war as we are currently seeing today.

Chloe What is the difference between comparative and absolute advantage? Absolute advantage means that a country is more efficient in producing a specific product compared to other countries. By specializing in one product, countries are able to trade and receive more of each item while spending the least amount of money. Comparative advantage, on the other hand, tests the opportunity cost of producing one good instead of another.

For example, the video stated that South Africa’s opportunity cost of producing one DVD is giving up five bags of wheat. The main difference between comparative and absolute advantage is that the country either gives up the production of one product or continues to produce it while thinking about its opportunity cost. Visit the following CIA Factbook website (Links to an external site.), select two countries of interest to you (other than U.S.), select the economy section, scroll down and locate at least five of the country’s major exports. Are these exports indicative of an absolute or comparative advantage?

Brazil: transport equipment, iron ore, soybeans, footwear, coffee Canada: motor vehicles and parts, industrial machinery, aircraft, chemicals, fertilizers These exports are a comparative advantage. Each country has a lower opportunity cost to produce these exports. Using the same CIA Factbook Website above, what are the major exports for the exports. Using major exports are agricultural products (soybeans, fruit, corn), industrial supplies (organic chemicals), capital goods (transistors, aircraft, motor vehicle parts, computers, telecommunications equipment), and consumer goods (automobiles, medicines). Should we expect goods to be the same price all over the world? What factors might make a Big Mac more expensive in one country relative to another? No.

The cost of ingredients, rent, and labor can make a Big Mac more expensive in one country relative to another. Visit the debt clock website at http://www.usdebtclock.org/ (Links to an external site.) and locate the on the U.S. Trade Deficit? What is the deficit indicated? In percentage terms approximately how much of this deficit is with China?  The current U.S. trade deficit is a little more than 823 billion dollars. The percentage is around 37.3. China currently takes up 307 billion dollars. Visit the following Yahoo Currency Exchange site (Links to an external site.) and determine how much a $200 dress in N.Y. would cost a British visitor in Pounds? The dress would cost 156.92 pounds.

What are the benefits of free trade? Protectionism (e.g., tariffs & quotas)? Which position do you lean toward? Explain your perspective and after you post your narrative, reply to at least two other students’ comments. Explain why you agree, or better yet, find others that take a different position and explain why you disagree. A huge benefit of free trade is that a consumer can buy a good or service from other states or other countries without paying an extra tax. Protectionism, on the other hand, charges tariffs on imports. When a consumer purchases something, they don’t see the charge until their item has arrived in their country. I believe that free trade is better than protectionism. Consumers are able to buy products that would never be found within their country. Free trade also encourages consumers to continue spending. By imposing a tax on imported goods, consumers are less likely to purchase an item from a foreign country. Edited by Chloe Lopez on Jul 21 at 9:48am

International Trade Discussion Essay Questions

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