《曼昆经济学原理英文版文案加习题答案章》由会员分享，可在线阅读，更多相关《曼昆经济学原理英文版文案加习题答案章（21页珍藏版）》请在金锄头文库上搜索。
1、Chapter 9/Application: International Trade1799APPLICATION: INTERNATIONAL TRADEWHATS NEW IN THE SEVENTH EDITION:A new In the News feature on “Threats to Free Trade” has been added.LEARNING OBJECTIVES:By the end of this chapter, students should understand:what determines whether a country imports or e
2、xports a good.who wins and who loses from international trade.that the gains to winners from international trade exceed the losses to losers.the welfare effects of tariffs and import quotas.the arguments people use to advocate trade restrictions.CONTEXT AND PURPOSE:Chapter 9 is third in a three-chap
3、ter sequence dealing with welfare economics. Chapter 7 introduced welfare economics: the study of how the allocation of resources affects economic well-being. Chapter 8 applied the lessons of welfare economics to taxation. Chapter 9 applies the tools of welfare economics from Chapter 7 to the study
4、of international trade, a topic that was first introduced in Chapter 3.The purpose of Chapter 9 is to use welfare economics to address the gains from trade more precisely than in Chapter 3, which discussed comparative advantage and the gains from trade. This chapter develops the conditions that dete
5、rmine whether a country imports or exports a good and discusses who wins and who loses when a country imports or exports a good. This chapter will show that when free trade is allowed, the gains of the winners exceed the losses of the losers. Because there are gains from trade, restrictions on free
6、trade reduce the gains from trade and cause deadweight losses similar to those generated by a tax.KEY POINTS:The effects of free trade can be determined by comparing the domestic price without trade to the world price. A low domestic price indicates that the country has a comparative advantage in pr
7、oducing the good and that the country will become an exporter. A high domestic price indicates that the rest of the world has a comparative advantage in producing the good and that the country will become an importer.When a country allows trade and becomes an exporter of a good, producers of the goo
8、d are better off, and consumers of the good are worse off. When a country allows trade and becomes an importer of a good, consumers are better off, and producers are worse off. In both cases, the gains from trade exceed the losses.A tariffa tax on importsmoves a market closer to the equilibrium that
9、 would exist without trade and, therefore, reduces the gains from trade. Although domestic producers are better off and the government raises revenue, the losses to consumers exceed these gains.There are various arguments for restricting trade: protecting jobs, defending national security, helping i
10、nfant industries, preventing unfair competition, and responding to foreign trade restrictions. Although some of these arguments have merit in some cases, economists believe that free trade is usually the better policy.CHAPTER OUTLINE:This chapter may be difficult to teach and very difficult for stud
11、ents to understand and accept. Be prepared for a skeptical reaction from students who have been told that free international trade is detrimental to a country. For various historical, cultural, and political reasons, free trade has few defenders outside of the economics profession.Point out that int
12、ernational trade issues are no different from trading as it applies to individuals within a community or between states and regions within a country. The gains from trade between countries occur for the same reasons that we observe gains from trade between individuals. Pick a state adjacent to yours
13、. Ask students why we do not seem to worry about “importing” goods from other states the same way in which we worry about importing goods from other countries.I.The Determinants of TradeA.Example used throughout the chapter: The market for textiles in a country called Isoland.B.The Equilibrium witho
14、ut Trade1.If there is no trade, the domestic price in the textile market will balance supply and demand.Figure 12.A new leader is elected who is interested in pursuing trade. A committee of economists is organized to determine the following:a.If the government allows trade, what will happen to the p
15、rice of textiles and the quantity of textiles sold in the domestic market?b.Who will gain from trade, who will lose, and will the gains exceed the losses?c.Should a tariff (a tax on imported textiles) be part of the new trade policy?C.The World Price and Comparative Advantage1.The first issue is to decide whether Isoland should import or export textiles.a.The answer depends on the relative price of textiles in Isoland compared with the price of textiles in other countries.b.Definition of world price: the price of a good that prevails in the world market for that g
