宏观经济学原理 第五版 英文原版课件macro-ch09-presentation.pptVIP

Application:International Trade 9 In this chapter, look for the answers to these questions: What determines how much of a good a country will import or export? Who benefits from trade? Who does trade harm? Do the gains outweigh the losses? If policymakers restrict imports, who benefits? Who is harmed? Do the gains from restricting imports outweigh the losses? What are some common arguments for restricting trade? Do they have merit? A C T I V E L E A R N I N G 1 Analysis of trade A C T I V E L E A R N I N G 1 Answers A C T I V E L E A R N I N G 1 Answers CHAPTER SUMMARY A country will export a good if the world price of the good is higher than the domestic price without trade. Trade raises producer surplus, reduces consumer surplus, and raises total surplus. A country will import a good if the world price is lower than the domestic price without trade. Trade lowers producer surplus but raises consumer and total surplus. A tariff benefits producers and generates revenue for the govt, but the losses to consumers exceed these gains. CHAPTER SUMMARY Common arguments for restricting trade include: protecting jobs, defending national security, helping infant industries, preventing unfair competition, and responding to foreign trade restrictions. Some of these arguments have merit in some cases, but economists believe free trade is usually the better policy. On 12/31/2004, U.S. quotas on apparel textile products expired. During Jan 2005: U.S. imports of these products from China increased over 70%. Loss of 12,000 jobs in U.S. textile industry. The U.S. textile industry labor unions fought for new trade restrictions. The National Retail Federation opposed any restrictions. In the News: Textile Imports from China November 2005: Bush administration agreed to limit growth in imports from China. 0 This relatively short chapter has a few main objectives: Welfare analysis of free trade in a good that a country exports, rel