1: Tariffs encourage Americans to buy U.S.-made products. (Points: 13) I find this position to be valid. Tariffs are basically taxes on imports, thus making imported goods more expensive to buy (Nickels, McHugh & McHugh, 2008, p. 75). Protective tariffs are designed to raise the retail price of imported products so that domestic goods are more competitively priced (Nickels, McHugh & McHugh, 2008, p. 76). Therefore, if when a consumer enters a store and sees similarly priced products, one imported and one made domestically, they can choose a US made product without feeling as if they are overpaying for the same product.
and Global Economics Core (S1225782) Review Name: ____________________ Date: ____________ Key Terms absolute advantage autarky balance of trade boycott brain drain capital flight capital mobility colonizlization comparative advantage conditionality consensus containerization developed developing economic development economic sanctions foreign aid foreign direct investment foreign exchange reserves foreign investment globalization human rights infrastructure insourcing interdependence International Monetary Fund international trade migration offshoring opportunity cost outsource outsourcing portfolio investment protectionist specialization standard of living sustainable development terrorism trade deficit trade embargo trade sanction trade war transparency World Trade Organization Lesson One: It's a Small World Lesson Objectives Explain how international trade allows countries to specialize. List the advantages of dividing labor internationally. Describe and calculate the effects of specialization on workers, particularly on wages, and on production costs, particularly for labor. 30 of 39 2/10/11 10:16 AM Printable Documents
As the time horizon increases, variable costs rely less on existing factors and restrictions and therefore will begin behaving differently which will in turn affect the cost of production (Wright, 2007). The second way a firm that’s into profit maximization can decide its greatest level of output is by way of the marginal revenue -- marginal cost method. This is done by subtracting the marginal cost from the marginal revenue that a product generates. Using marginal cost and marginal revenue as the bases, profit maximization will be obtained at the point when marginal revenue is equal to marginal cost. If the marginal revenue is greater than marginal cost this would be when a profit maximizing firm would need to increase production until marginal revenue is equal to marginal cost.
Henry George offered a single tax on land properties in order to give an incentive to put the land to use. This meant hiring for labor and employing workers. This would create more wealth and allow better quality of living for the working class. Social Darwinism states that the strong would see their wealth increase and weak would see a decrease. In other words, it meant that the economy operated under “survival of the fittest”.
Show on this diagram equilibrium relative price and gains from trade. Is it the total gain from trade between two countries? e. Use a diagram similar to Figure 4.8 in lecture notes to illustrate the e¤ect of trade on Foreign relative labor income, W=R. What does the StolperSamuelson theorem predicts about the e¤ect of trade on real income of capital and labor owners in Foreign? Verify that predictions of the StolperSamuelson theorem are satis…ed for Foreign country factors’market.
Ease of raising capital. ii. Disadvantages- Double taxation. Cost of set-up and report filing c. Going public d. A manager’s primary objective should be to maximize shareholder wealth which also means maximizing stock prices. a.
Maximizing profit which means total revenue minus total goal is a competitive firm’s goal. The competitive firm takes the market price given and then chooses how much supply is needed so that a sales price can be determined for profit. The monopoly firm determines their price on the quantity of products to sell. The monopoly decides how much of its product to make and what price to charge for it. Individual financial gain determines the price for oligopolies.
Synopsis Consumerist culture is understood to be both a driver and resultant of capitalist ideology. Society’s continual desire to acquire commodities that satisfy their marginal utilities fuels the capitalist system of production. This essay considers arguments in support of the idea that consumerism is a vital aspect of capitalist economic process. It proves that in a post-scarcity society avarice has become a social norm, market institutions manipulate consumer preference, by propagating that identities are forged through conspicuous consumption, and thus persuade individuals that they will maximise their utility by continually purchasing the excess of output generated by the economic system. Thus demonstrating interdependency between the affluenza of consumerism culture and capitalistic economic growth.
The more common and economically orientated explanation for country’s differing attitudes towards international trade is that certain countries gain or loose from trade in certain international markets. Most gains and losses of countries in international trade can be explained by looking at the differing factor endowments of countries. The basic principle of factor endowments in relation to international trade is that a country or group within a country that is trading a resource that is locally abundant to them in relation to the international market will gain from international trade as they do not have the burden of scarcity that other countries will have in relation to them. (Frieden, M. and Lake, D. 2000 p.318) This allows them essentially to behave as an economy of scale within that international market and therefore gain like any other economy of scale might. The inverse is true for countries or groups within countries that are trading a resource that is locally scarce to them in relation to the international market.
In exploring the relationship between economic inequalities & global security it is also important to define the categories in which countries are classified with regards to their economic standing. 'Advance Industrial Countries' (AIC's) enjoy self-sustained economic growth in all industrial sectors, whereas 'Less Developed Country's' (LDC's) are characterized by low GDP, low per capita GDP, low per capita growth, & low life expectancy, combined with high population growth rates. The aims of this essay is to examine the reasons that cause countries to fall in to such categories & to outline an understanding as to why the issue of inequality has progressively gotten more serious & difficult to control. This is