Chapter 34: Q. 33RQ (page 832)
What is the general trend of trade barriers over recent decades: higher, lower, or about the same?
Short Answer
In recent decades, trade barriers have been decreased in general.
Chapter 34: Q. 33RQ (page 832)
What is the general trend of trade barriers over recent decades: higher, lower, or about the same?
In recent decades, trade barriers have been decreased in general.
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Get started for freeTrade has income distribution effects. For example, suppose that because of a government-negotiated reduction in trade barriers, trade between Germany and the Czech Republic increases. Germany sells house paint to the Czech Republic. The Czech Republic sells alarm clocks to Germany. Would you expect this pattern of trade to increase or decrease jobs and wages in the paint industry in Germany? The alarm clock industry in Germany? The paint industry in Czech Republic? The alarm clock industry in Czech Republic? What has to happen for there to be no increase in total unemployment in both countries?
How is international trade, taken as a whole, likely to affect the average level of wages?
Is international trade likely to have about the same effect on everyone's wages?
Explain how trade barriers save jobs in protected industries, but only by costing jobs in other industries
How would direct subsidies to key industries be preferable to tariffs or quotas?
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