Chapter 9

Chapter 9 - Chapter 9; International Trade Arguments for...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 9; International Trade Arguments for Restricting Trade 1. The Jobs Argument Trade destroys jobs in the industries that compete against imports Economist’s Response: Unemployment does not rise as import rises because job losses from imports are offset by job gains in export industries Even if all goods could be produced cheaper abroad, the country need only to have a comparative advantage to have a viable export industry and to gain from trade 2. National Security Argument An industry vital to national security should be protected from foreign competition, to prevent dependence on imports that could be disrupted during wartime Economist’s Response: As long as we base policy on true security needs Producers may exaggerate their own importance to obtain protection 3. The Infant-Industry Argument New industry argue for protection until mature enough to compete with foreign firms
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/08/2012 for the course EC 101 taught by Professor Idson during the Fall '08 term at BU.

Page1 / 2

Chapter 9 - Chapter 9; International Trade Arguments for...

This preview shows document pages 1 - 2. Sign up to view the full document.

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