3. People often feel that tariffs, quotas, and other import restrictions will save jobs and promote a higher level of employment. But trade restrictions that reduce the volume of imports will also reduce exports. Question 4: What do researchers have to say about the relationship between firm’s productivity and exposure to global competition? Answer: Question No.5: When is international trade an opportunity for workers?
However, there are advantages and disadvantages of international trade in the simulation that cause the world’s economy to fluctuate and leave certain countries astray. One of the advantages to international trade that I found for countries was the monetary gains and having the ability to keep their own markets honest causing the local producers to improve its goods for the reason citizens have more choices available to them. The disadvantages of international trade have to deal with countries of higher power that try to take advantage of smaller countries by swindling their government into unorthodox trading during a crisis within those countries. Another disadvantage is the possibility of local producers becoming weak, causing the unemployment rate to rise because local producers are unable to compete with international
A firm’s value depends on the positive net income generated in the past. True False A firm’s value depends on the firm’s ability to generate positive cash flows now and in the future True False When determining the value of a firm, which of the following statements is true? • Inversters are risk neutral. Other things equal they prefer to pay more stocks that are less risky and have uncertain cash flows • Investers love risk. Other things equal they prefer to pay more for stocks that are more risky and have uncertain cash flows.
One of the reasons companies outsource workers, and thus help imperialize foreign countries, is for cheap labor. Western corporations can have multiple sources for a given item, in order to allow continued production once one region realizes it is being treated unfairly and strikes. Oddly, it is argued that these companies could survive without any foreign connection—capitalism without imperialism. But, this would lower profits and prevent “advanced capitalism.” The decision to claim that cultures with what is considered modern technology is defined by military power rather than which culture is actually superior. It is this force that essentially created this gap.
In other words, what does the document illuminate about the wider world that Andrew Carnegie lived in? What was taking place that prompted him to write? (1-2 sentences) ***Carnegie proposed that the best way of dealing with the wealth is to distribute their goods responsibly and thoughtfully. Andrew Carnegie believes that the wealthy should not spend irresponsibly and self-indulge, but take care of the wealth and spend on something worth it. B.
The government, and much of the nation, believed in the principles of laissez-faire economics, which dictated that the economic market should run freely without government interference. According to the theory, free, unregulated markets led to competition, which in turn led to fair prices of goods for consumers. The government did not want to interfere in the free market. Any concern for the plight of the poor during this time was minimized by the tenets of social Darwinism, which became popular in the late 1800s. Social Darwinism adapted Charles Darwin’s theory of evolution, “survival of the fittest,” to the business world, arguing that competition was necessary to foster the healthiest economy (just as competition in the natural world was necessary to foster the healthiest, or fittest, species).
The American Dream In the article Inequality and the American Dream published in the Economist, the author Paul Krugman proposes to solve the disparity in our economic system by increasing taxes on the wealthy. The real reason for this disparity is because of our economic system. Our government is based on capitalism that allows economic freedom in doing business without government control. The American dream shells from this system that promises personal gain and prosperity to those who work hard. This is encouraged further by our selfish human nature to have great things for ourselves.
Write your definition of the gospel of wealth. Do you agree with its assumptions? Why or why not? The central theses of the gospel of wealth was the danger of allowing large sums of money to be passed into the hands of people or organizations who are not equipped mentally or emotionally to deal with them. As a result, the wealthy must assume the responsibility of distributing his fortune in a way that it will be put to good use, and not wasted on thoughtless expenses.
In determining which goods to import from which country and which goods to export, I encountered some of the advantages and some limitations of the international trade. According to the theory of comparative advantage, a country should specialize in the production and export of commodities that it can produce at a lower opportunity cost than other countries while it should import commodities that are produced at a lower opportunity cost than other countries. Limitations such as imposing a quota or tariff can raise the price of products and lead to a loss in consumer surplus or cause retaliation from the country therefore reducing the goods a country is able to export. There are factors that influence the foreign exchange rate which also has an impact on a country’s importing and exporting. Regardless of these things, international trade is important to a countries
International Trade Simulation Darlene Traci Kepner XECO/212 June 17, 2012 Jim Vernon International Trade Simulation I am advising International trade recommendations for the President of Rodamia. The advantages of international trade and investments imports will create a wider variety of products which will give them a choice in price and quality. Domestic producers can expand and sell their products to other countries creating jobs, capital, and new investments, increasing the economy. When trading you have to look at the opportunity of cost production this is what defines the comparative advantage in which a country can produce a particular good or service at a lower marginal price, compared to another country; basically a choice