Chapter 20: Q. 24 (page 490)
Is international trade likely to have roughly the same effect on the number of jobs in each individual industry?
Short Answer
No, it differs.
Chapter 20: Q. 24 (page 490)
Is international trade likely to have roughly the same effect on the number of jobs in each individual industry?
No, it differs.
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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?
What is dumping? Why does prohibiting it often work better in theory than in practice?
Explain how a tariff reduction causes an increase in the equilibrium quantity of imports and a decrease in the equilibrium price. Hint: Consider the Work It Out "Effects of Trade Barriers."
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?
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