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#1 12-01-2018 03:57:41

dmt1997325
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Date d'inscription: 01-12-2017
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as workers and the owners

International economics uses the same fundamental methods of analysis as other branches of economics http://www.hockeyflyersteamshop.com/hats/ , because the motives and behavior of individuals are the same in international trade as they are in domestic transactions. Everybody knows that some international trade is beneficial—for example, nobody thinks that Norway should grow its own oranges. Many people are skeptical, however, about the benefits of trading for goods that a country could produce for itself. Shouldn’t Americans buy American goods whenever possible, to help create jobs in the United States? Probably the most important single insight in all of international economics is that there are gains from trade—that is, when countries sell goods and services to each other, this exchange is almost always to their mutual benefit.

The range of circumstances under which international trade is beneficial is much wider than most people imagine. It is a common misconception that trade is harmful if there are large disparities between countries in productivity or wages. On one side, businesspeople in less technologically advanced countries, such as India, often worry that opening their economies to international trade will lead to disaster because their industries won’t be able to compete. On the other side, people in technologically advanced nations where workers earn high wages often fear that trading with less advanced, lower-wage countries will drag their standard of living down—one presidential candidate memorably warned of a “giant sucking sound” if the United States were to conclude a free trade agreement with Mexico.

International migration and international borrowing and lending are also forms of mutually beneficial trade—the first a trade of labor for goods and services, the second a trade of current goods for the promise of future goods. Finally, international exchanges of risky assets such as stocks and bonds can benefit all countries by allowing each country to diversify its wealth and reduce the variability of its income. These invisible forms of trade yield gains as real as the trade that puts fresh fruit from Latin America in Toronto markets in February. Although nations generally gain from international trade, it is quite possible that international trade may hurt particular groups within nations—in other words, that international trade will have strong effects on the distribution of income.

The effects of trade on income distribution have long been a concern of international trade theorists, who have pointed out that: International trade can adversely affect the owners of resources that are “specific” to industries that compete with imports, that is, cannot find alternative employment in other industries. Examples would include specialized machinery, such as power looms made less valuable by textile imports and workers with specialized skills, like fishermen who find the value of their catch reduced by imported seafood. Trade can also alter the distribution of income between broad groups, such as workers and the owners of capital.
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