Ch9___International_Trade__Handouts_

Ch9___International_Trade__Handouts_ - International Trade...

Info iconThis preview shows pages 1–20. Sign up to view the full content.

View Full Document Right Arrow Icon
International Trade CHAPTER 9 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
International Trade ± What does Ferris’ teacher have to say about trade? http://www.videosift.com/video/Ben-Stein-Ferris-Buellers-Day-Off 2
Background image of page 2
International Trade ± Why is Lou Dobb’s so pissed off? http://news.aol.com/political-machine/2009/02/13/obama-abandons-buy- merican- timulus- rovision/ american stimulus provision/ 3
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
International Trade ± Why is this a good stock trade? Buy: Sunpower, First Solar Sell: Yingli Green, Canadian Solar 4
Background image of page 4
International Trade 5
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Which Region will loose the most? 6
Background image of page 6
Which State will loose the most? 7
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
What does it mean when US Steel Corp. and Nucor claim hina is “dumping” its steel in the U.S.? China is dumping its steel in the U.S.? 8
Background image of page 8
C H A P T E R C H E C K L I S T When you have completed your study of this chapter, you will be able to 1 Explain how markets work with international trade. 2 Identify the gains from international trade and its winners and losers. 3 Explain the effects of international trade barriers. 4 Explain and evaluate arguments used to justify restricting international trade. 9
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
9.1 HOW GLOBAL MARKETS WORK Imports Exports Volume of Trade 10
Background image of page 10
9.1 HOW GLOBAL MARKETS WORK Imports Exports Volume of Trade 11
Background image of page 11

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
9.1 HOW GLOBAL MARKETS WORK ± What Drives International Trade? The fundamental force that generates trade between nations is comparative advantage . 12
Background image of page 12
9.1 HOW GLOBAL MARKETS WORK Trade in T-Shirts and Airplanes between the U.S. and China. •China has comparative advantage in T-Shirts. •U.S. has comparative advantage in Airplanes. 13
Background image of page 13

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
9.1 HOW GLOBAL MARKETS WORK ± The United States T-Shirt Market With no international trade, S demand and U S 1. U.S. demand and U.S. supply determine . e U.S. price at $8 a 2. the U.S. price at $8 a T-shirt and 3. U.S. firms produce at 40 p million T-shirts a year and U.S. consumers buy 40 million T-shirts a year. 14
Background image of page 14
Background image of page 15

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
9.1 HOW GLOBAL MARKETS WORK he demand for and supply of The demand for and supply of T-shirts in the world determine he world price at $5 4. The world price at $5. The world price is less than $8, o China must have a so China must have a ith international trade With international trade, 5. the price in the United tates falls to $5 a T- hirt States falls to $5 a T shirt. 16
Background image of page 16
9.1 HOW GLOBAL MARKETS WORK With international trade, 6. Americans increase the quantity they buy to 60 million T-shirts a year. S garment makers 7. U.S. garment makers decrease the quantity they produce to 20 million T-shirts a year. 8. The United States imports 40 million T-shirts a year. 17
Background image of page 17

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 18
9.1 HOW GLOBAL MARKETS WORK ± The United States Airplane Market With no international trade, quilibrium in the U S 1. Equilibrium in the U.S. airplane market. . he U.S. price is $100 2. The U.S. price is $100 million a airplane and 3. U.S. aircraft makers produce at 400 airplanes a year and U.S. airlines buy 400 a year.
Background image of page 19

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 20
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 72

Ch9___International_Trade__Handouts_ - International Trade...

This preview shows document pages 1 - 20. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online