xeco212.Wk8.International.Trade.Debate

xeco212.Wk8.International.Trade.Debate - and government...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
International Trade Debate 1 Running head: International Trade Debate International Trade Debate Axia College
Background image of page 1

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

View Full Document Right Arrow Icon
International Trade Debate 2 International trade has been going on for years and has impacted economically. Today most of textiles and clothing that Americans wear are imported from China, Indonesia, and other countries where it is cheap to manufacture products. Because of the currency difference between America and other countries, our dollar value is much greater. Trade raises the economic well- being of a nation in the sense that the gains of the winners exceed the losses of the losers. Tariff raises the domestic prices, domestic sellers are better off, and domestic buyers are worse off. In addition, the government will also raise revenue. Changes in consumer surplus, producer surplus,
Background image of page 2
Background image of page 3

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

View Full Document Right Arrow Icon
Background image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: and government revenue will determine the gains and losses of trade. Before tariff is enforced, the domestic price equals the world price. After tariff is enforced, the domestic price exceeds the world price by the amount of the tariff. A tariff causes a deadweight loss because tariff is a type of tax. This type of tax distorts the incentives and pushes the allocation of scarce resources away from the optimum. Basically, a country becomes exporter of a good, producers are better off, and consumers are worse off. When a country becomes an importer of a good, consumers are better off, and producers are worse off. International Trade Debate 3 International Trade Debate 4...
View Full Document

{[ snackBarMessage ]}

Page1 / 4

xeco212.Wk8.International.Trade.Debate - and government...

This preview shows document pages 1 - 4. Sign up to view the full document.

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