Chapter 23 International trade

Chapter 23 International trade - Chapter:23...

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Chapter: 23 INTERNATIONAL TRADE
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Learning Objectives Gains from trade Pattern of Trade Exports and imports Economic effects of tariffs and quotas Case for free trade Arguments for protectionism Identify four types of trade barriers economic impact of tariffs, including both direct and indirect effects Describe the major provisions of the WTO, and explain why some protest against the WTO.
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Gains from international trade increase the productivity specialization larger total output efficient production of various goods transmission of ideas global resource allocation
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Trade Pattern U.S. Imports have exceeded exports. Trade deficit - $816 billion (2007) Exports $1,184 - Imports - $ 2000 Billion Canada is the most important trading partner Most U.S. trade is with industrially advanced countries The U.S. has sizable trade deficits with Japan & China- ( $ 75 Billion & $ 257 billion) Dependence on foreign oil is seen in the trade deficit with OPEC U.S. Exports of services exceeds the imports of services by $ 107 billion- (transportation, Finance and airlines)
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2009 Trade Deficit Cut in Half The recession hammered the U.S.  trade deficit  down to $380.7  billion, nearly half the 2008 deficit of $695 billion.  The Bureau of Economic Analysis ( BEA ) reported that in 2009,  the U.S. imported $1.9 trillion in goods and services, while  exporting only $1.5 trillion. America's dependence on foreign oil  continued to drive the deficit.  In 2009, the U.S. imported $204 billion more in petroleum- based products than it exported. Despite the banking crisis, the U.S. exported $206 billion in  financial services, down just $3 billion from 2008. For more on  the 2009 trade deficit, and why it weakens the economy, see  U.S.Trade Deficit .
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Trade Pattern          Dependence on foreign oil – OPEC Imports- $ 174 billion Exports- $ 50 billion Major participants of world trade are U.S.,  Japan, Germany, U.K. & France China is a major international trader     $ 1.2 trillion exports Asian tigers- South Korea, Taiwan  Singapore and Hong Kong
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Factors contributing to international trade: improvements in transportation technology Information technology & telecommunications decline in trade barriers peaceful relations among nation
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Chapter 23 International trade - Chapter:23...

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