...full understanding of trade, one must first divorce politicians’ and the media’s descriptions of trade from economists’ understanding, especially as it relates to the ‘benefits of trade.’ Politicians traditionally say they favor trade, but only as long as their constituencies are not adversely affected. Economists favor voluntary, or free trade, without that political caveat, because it leads to resources being used in their most highly valued ways and thereby to general, widespread increases in standards of living. Many students see the win-win model of voluntary exchange as abstract, a textbook construct and simulation artificiality that doesn’t fit the real world where trade affects jobs, the environment, and relationships between nations. The economic consensus on the importance of voluntary trade is an extension of their recognition of the benefits of voluntary exchange among individuals and businesses. Teachers can best build students’ understanding of how trade creates wealth by taking the time to establish a firm grounding in the key economic reasoning tools – specialization, division of labor, productivity, and comparative advantage – and by applying them to trade within a nation before leaping into trade among nations. The basics, as always, come back to scarcity and opportunity cost. Natural and human resources are not equally distributed throughout the world, or even, indeed, throughout a nation. One of the most important functions of trade is to redistribute...
Words: 1275 - Pages: 6
...Free Trade A brief definition of free trade is: Free trade refers to a general openness to exchange goods and information between and among nations with few-to-no barriers-to-trade. Some people argue that free trade is no good to society and is only bad for Americans. But I would have to disagree with these people because there are a lot of reasons that free trade can be good to society. For the argument that it is important to keep jobs in the United States, this is true that people would rather have jobs in the United States and that the U.S auto industry loses 5,000 jobs to foreign competitors, which those households are worse off. On the other hand, the millions of other Americans that can purchase less expensive, more efficient cars, from wider range of car manufacturers, they are better off. If another nation is more efficient and has a comparative advantage in producing a product, then it is in our best interest to buy from that nation. Sure it would be nice to keep the jobs in the United States, but at the same time one has to think that free trade is a good idea because the economy is saving money. People say that we are exporting jobs when auto manufactures set up plants in Mexico, but a counterargument would be that if Mexico is the least expensive place to assemble the vehicles, from the economic standpoint, that is where it should be done, as long as it can be done with the same level of quality. Another reason why free trade is a good idea is because it makes...
Words: 754 - Pages: 4
...diffusion aloud for all of the smartest people to come around and join in the school of Athens and communicate about things. This leads to Europe growing and being the strongest it's ever been. Another thing during this time period that developed Europe's culture was the Renaissance. The Renaissance led to cultural developments and improvements because it was during a time period of prosperity for Europe. The reason why it was so prosperous during this time period is because of the after effects of the Crusades. The Renaissance also led to art being used and bought more meaning, that there was something of value in Europe that holds meaning. This means that Europe's culture was shifting...
Words: 1563 - Pages: 7
...Trade Fair report Telecom Expo & Cloud Expo NL On Thursday 9th of December I have visited the Telecom Expo & Cloud Expo NL. As the name already indicates it’s a telecommunication expo. The reason why I visited this trade fair is that we had to visit a b2b trade fair, and most b2b trade fairs you cannot visit as a student without an invitation or without paying al lot. And with this fair it was possible because it was the first time they were organizing this fair. The telecom Expo & Cloud Expo NL was specially organized for the IT sector but everybody from every company could go to this trade fair if they wanted. The target group for this trade fair were it-professionals in all sectors. This was because those people need this kind of systems which were exposed on the trade fair. There was definitely a connection between the lay-out/set-up of the trade fair and the target group. Because it was really IT like, with all high tech equipment. It also had colouring, but totally different than on a trade fair like “de huishoudbeurs”. My first impression of the Telecom Expo & Cloud Expo NL was that it was small, but really good organized. Because at the entrance they checked you invitation. If you had forgotten your invitation or even didn’t had one they had a few computers were you could subscribe or just print your invitation. They took care of everything, and even had catering. Even it was the first time the organized the Telecom Expo & Cloud Expo NL...
Words: 1694 - Pages: 7
...01. What is trade Protectionism? Trade protectionism is basically a rules and regulations of a government to maintain or to make a limitation on the import of goods and services to protect/promote domestic product and also to create new jobs. Basically Protectionism is the economic policy of government to save our domestic product and industry by imposing tariffs on imported goods, restrictive quotas, and also variety of other government regulations to prevent foreign product not to take -over of domestic markets Here the government gives an instructions and objectives on which product can be imported in the country and which products cannot be imported from the other part of the nations. Domestic products mean the products, which is made in own industries. These are the industries face tremendous pressure to maintain competitive market prices of their products with foreign goods. That is why government uses trade protectionism to develop the domestic products and also helps the domestic product industries to compete in global market. The supporters of trade protectionism believe that it allows domestic producers to survive and grow, producing more jobs. Because if the domestic product industries develop well and have the ability to compete in the global market, later on there will be more jobs and people will be employed and also be skilled. In the 17th and 19th century, business people used to follow an economic principle called mercantilism. The main theorem...
Words: 1942 - Pages: 8
...Maria Tovar Trade Surplus and Trade Deficit China overtakes USA as worlds trading partner China´s Trade Surplus Vs. USA´s Trade Deficit Countries that have open economies are those who carry out economic activities with other countries and trade goods and services. Countries can export, which means selling domestic goods and services to another country or they can import, which means buying goods and services from another country. An economic surplus makes reference to having a positive balance of trade; when a country´s exports exceed its imports. On the other hand, a trade deficit is when a country´s imports exceed its exports and has a negative commercial balance. As the video: “China overtakes USA as a world´s trading partner,” suggests, China currently has a trade surplus. Between 2000-2008 China´s imports have grown 403% whilst its exports have grown 474%. China´s exports are currently higher than its exports due to its economic strategy, which will be explained below. The video explains why China has overtaken the US as world´s trading partner, and thus why China has a trade surplus and the US a trade deficit. American and many other companies are now producing and assembling their products in China due to the low manufacturing costs in this country. It is more profitable for American companies to produce and assemble their products in China not only for the low labor costs, but also for the low transport costs. Even though this harms the US´s economy, companies...
Words: 1172 - Pages: 5
...businesses and the framework in which they operate. In this unit you must explain the importance and differences of international trade. You will explain key economic terms and demonstrate an understanding of how to trade internationally. Many of the tasks will cover several Passes and Merit Criteria. Barr’s are soft drink manufacturers who are famous for manufacturing Irn Bru. They have just appointed you as their marketing manager and are keen to explore the idea of selling Irn Bru abroad. They have identified Germany as a possible option. They have asked you to research into the benefits and costs of doing business internationally. They have asked you to write a report and then present your findings to the board. P1) P1 explain the international Business environment in Which a selected organisation Operates You decide to look at a company that is successfully trading internationally. * Write a profile of a multi-national company Where is its headquarters? Where does it sell its goods or services? What percentage of its market are in different countries etc? How long has it traded in different countries? Turnover etc? * Answer the following questions? What is Globalisation? What are the benefits and costs of Globalisation? What is an import? What is an export? What is the balance of trade? * Show the UK’s balance of trade figures. Do we import more than we export? What are the main goods that we import in the UK? What are the main good that...
Words: 1065 - Pages: 5
... | 3 | 1.1 What is trade union | 3 | 1.2 Type of trade union | 4 | 1.3 Trade union’s function | 4 | 2.0 Structure of Trade Union in Malaysia | 5 | 3.0 How do Employers Perceive of Trade Union | 6 | 3.1 Conflict | 6 | 3.2 Controlled by purposely | 6 | 4.0 Do trade union membership decline | 6- 8 | 5.0 Why trade union decline | 9- 12 | 6.0 Why employee still join trade union | 13 | 7.1 Received Benefits | 13 | 7.2 Protection of Rights | 13 | 6.3 Collective Bargaining | 13 | 7.0 Conclusion | 13 | 8.0 References | 14 | 9.0 Appendix | | Introduction Trade union can be viewed as helpful or unhelpful by employer. For example, according to Maimunah (2007, p133), Japanese viewed union as an assisting tool, because many objectives are achieved by Japanese unions, therefore they are still using union. On the other hand, some countries believe that union is limiting the power of management and tends to discourage employee join union. Such as UK and USA, employers are strongly viewed union as an enemy. Therefore, this assignment will discuss about trade union and why is it declining and why some countries still using union. Besides that...
Words: 2867 - Pages: 12
...Introduction In this essay is to clarify my opinion on why the U.S. should not lift the embargo on Cuba. Many critics have expressed their opinion as to why, the embargo should be lifted. This paper will explain why united States order a trade embargo against Cuba? What are the results for both countries? [What was the effect of the embargo on the citizens of Cuba and what was the result of the embargo on the US?], and what did the Cuban Government do to retaliate against the Trade Embargo? Finally, look at the strategic results and necessity for trade embargo in a globally interconnected economy. When the United States defeated Spain in the Spanish American war of 1898, Cuba along with Puerto Rico and Guam were signed over to the United States by Spain. The United States had the right to involve in the affairs of Cuba at any time. When Castro overthrew the existing government, run by President Batista, the United States supported this action by imposing arms embargo against the Batista government in 1958. Then in or about 1960, Castro not only seized private lands and companies of Cuban citizens, but also subsidiaries of the United States of America. This is when the Eisenhower administration imposed trade restriction with the exception of food and medical supplies. Not only was Castro started trading with the Soviet Union; but the Soviet Union also building missile bases in Cuba; the United States severed all ties and imposed a permanent embargo on Cuba at the...
Words: 2121 - Pages: 9
...ALFONSO MILLER FRAIGE 690506 MERCADOTECNIA GLOBAL VIDEO STUDY “CAFTA” 19/ 10/2015 1- How would Adam Smith view CAFTA and other proposed free trade agreements? - The notion of a free trade system encompassing multiple sovereign states originated in a rudimentary form in 16th century Imperial Spain. American jurist Arthur Nussbaum noted that Spanish theologian Francisco de Vitoria was "the first to set forth the notions (though not the terms) of freedom of commerce and freedom of the seas."[12]Vitoria made the case under principles of jus gentium. However, it was two early British economists Adam Smith and David Ricardo who later developed the idea of free trade into its modern and recognizable form. Economists who advocated free trade believed trade was the reason why certain civilizations prospered economically. Adam Smith, for example, pointed to increased trading as being the reason for the flourishing of not just Mediterranean cultures such as Egypt, Greece, and Rome, but also of Bengal (East India) and China. The great prosperity of the Netherlands after throwing off Spanish Imperial rule and pursuing a policy of free trade made the free trade/mercantilist dispute the most important question in economics for centuries. Free trade policies have battled withmercantilist, protectionist, isolationist, communist, populist, and other policies over the centuries. * More than anything seen on the political commitments and having to accept less than perfect...
Words: 486 - Pages: 2
...gap between rich and poor has been growing more quickly than the gap that has widened over the past 12 years. A global gap between rich countries and poor countries is more serious than ever. Erik Reinert, the author of a book titled "How rich countries got rich and why poor countries stay poor?", discusses about this long title itself regarding the issue above. Once again, "How rich countries got rich and why poor countries stay poor?" Reinert is considering about what causes this phenomenon and how can we fix this problem in this book. Orthodox development economists argue that mainstream economics(neo-liberalism) and international free trade can narrow the wage and rich-poor gap between rich countries and poor countries. Reinert criticizes them because there don't exist any exmaples of success in narrowing the gap historically and argues that "harmonious economy" is not a result of internationl free trade and laissez-faire but conscious policies since in contrast to rich countries which are already developed through protectionism, direct subsidies and government intervention so ready for free trade, poor countries are not because of their incompetitive industries. In other words, fair competition which free trade theory says cannot be possible. Rich countries got rich by following the example of richer countries. For example, the United States emulated the United Kingdom which was industrialized behind protectionism and state activism. But now, they try to do poor countries...
Words: 1022 - Pages: 5
...Now: Change Is the Only Constant Review Questions it 1. What factors contribute to the rapid pace of change in business? Is the pace likely to accelerate or decrease over the next decade? Why? Financial Institutions got a bailout By President Obama in 2009, Mortgage values dropped, financial institutions begin to Feel the pressure especially firms such as Bear Stearns that specialized in trading Mortgage backed securities. There was $61.7bn in losses with AIG, strong economy Out of more jobs can accelerate the next decade, there be a budget deficit. AIG got A $180bn bailout; while Bank of America got $45bn as well as JP Morgan Chase $25bn, Goldman Sachs got $10bn. The Rapid pace of change in business is the Internet, Cellphones and exposure on television. 2. What role does entrepreneurship play in the economy? Who stands to gain from the success of individual entrepreneurs? How do other parties benefit? People risk their Time, money and other resources to start and manage a business. But, They also Give hope to a better workforce. A lot of people; who are unemployed such as myself Right now will find jobs that are more flexible and challenging, working for big and Small business owners. 3. When did American business begin to concentrate on customer needs? Why? Value of Certain Products begin to go up. High Gas Prices from $1.25 to $4.25, The Cost of a loaf Of Bread is $2.79, the cost of dishwashing liquid about a $1.00, Purchase of products, By Consumers...
Words: 2012 - Pages: 9
...which reflected the same states in Peru - Caral. It is a society which had no agriculture or pottery but it still develop well by trading. Trade helps the people in a state survive better in a society. Caral is a society two hundred far away from the South Pacific Ocean but the people in Caral still can eat the fish from the South Pacific Ocean. Since the people of Caral made a big innovation about planting cotton by using the irrigation, the people in Caral used cotton nets for the fishermen who sent fish as payment. The exchange between fishes and cotton nets clearly shows that Caral engaged in trade. And this trade helps Caral develop better and better. This situation not only happens in Caral. In ancient China, there is not any transportation between towns, so it is not easy for the development of trade. Due to the restriction of trade, ancient Chinese people have a long time life of self-sufficiency. And this is also a reason why ancient China is an agriculture country. However, after Tang Dynasty, the emperor began to improve the transportation and technology such as shipbuilding greatly developed the trade. And China became more and more powerful until Qing Dynasty. Therefore, trading is a good way to develop both society and people's life. Trade means timing. It is not successful to create the opportunity for trade. There is no doubt, in Caral, the opportunity is its location. Caral locates in Peru Desert Coast but it also has Humboldt Current and Nino Current...
Words: 597 - Pages: 3
...world to what it is today. Usually when there is a need for a solution, someone invents the fix. The Roman’s had many issues and many needs for concrete. Some issues were water purification, transportation, and trade. In Roman time, there was no water purification or storage to distribute from house to house. The Roman’s needed a structure that could transports, filter, and store fresh water. “Just like they conquered other people, they would conquer nature with their engineering. In the end, for this city of a million people, they had 11 aqueducts, 11 channels of over 300 miles, delivering perhaps 150 to 200 gallons per person per day, an amazing amount for the ancient world.”. Before the introduction of aqueducts, water was transported on dirt roads by horse and carriage. People would wait and wait for water and some would die because of the delay. Concrete made a water supply readily available to the roman’s and is the basis for water storage in today’s times. (Herring, Benjamin) Trade and commerce is necessary to gather resources that one country could not produce. For example, Rome could not produce certain fruits and vegetables because of a different climate. With the introduction to a stable concrete road, transportation was easier and safer for trade. “At the beginning of the century, the supply of good roads was nowhere near the growing demand. Most roads at the time were little more than improved wagon trails. In fact, many of the major...
Words: 1450 - Pages: 6
...It is hardwired into our brain to trust. To adapt and by adapting, we must trust how or who will help us adapt. Our generation in the two thousands has led to mass information connection by the simple touch of the click of the mouse. You have Wikipedia, to Good Morning America, to our very own family hear say. The question is, why not just trust your own instincts? The words Nine-Eleven is a date that any American will remember because of the mass tragedy that burned into our media, our minds, and our history. On September eleventh of Two Thousand One, we all woke up to a very shocking interruption in America’s flow. Around nine o’clock in the morning, we the American people were informed that there had been a terrorist attack on two of our very own leading corporate buildings that regulated trade. Those buildings were the World Trade Centers in New York City. Once we all began as a nation to tune in as well as the rest of the world, we witnessed these buildings disappear into smoke and ash. After we all mourned to the horrible tragic deaths of more than the estimated deaths of Pearl Harbor in Nineteen Forty One, we all questioned why. Why would someone commit such an act of mass murder? As the...
Words: 1061 - Pages: 5
