Why nations trade ppt zzrhobt

Why nations trade ppt

25.10.2020

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• Specialization and trade can benefit all nations. A person or nation has an absolute advantage when it can produce a particular good at a lower cost than another person or nation. Comparative advantage is the ability of one person or nation to produce a good at a lower opportunity cost than that of another person or nation. Why Do Countries Trade? • Because countries have different natural, human, and capital resources and different ways of combining these resources. • When a country can produce more of a good with the same resources that another country can, it is said to have an absolute advantage in the production of that good that the first country wants, both will be better off if they specialize and trade. PPT – Why Nations Trade PowerPoint presentation | free to view - id: 83f55b-NmEyM. The Adobe Flash plugin is needed to view this content. Get the plugin now Unequal distribution of resources Natural resources are prolific in some areas but nonexistent in others Human capital – amount of human capital depends on need (high literacy rate) Physical capital Economic activity patterns The need for trade - specialization Costa Rica coffee production Economic Activity patterns Producing, exchanging, consuming, saving, investing Human capital India/Filipino call center –330,000; 350,000 Physical capital Infrastructure – roads, bridges, machinery WHY DO NATIONS EXPORT: Countries have tended to sell things to other countries because: Individuals and firms have been able to produce more of certain goods and services than can be consumed at home They have been able to sell goods and services to other countries at prices higher than the prices they can obtain Have students read the sections entitled, “Why Do Nations Export” and “Why Do Nations Import” in the Trade Issue in Depth, either in printed format or on-line. They may do so either in class or at home, depending on your preference and student access to computers. Alternatively, you may assign the reading as a follow-up to the activity. David Ricardo (19th Century) proved mathematically that trade could still be beneficial to both countries when one country had an absolute advantage in producing all goods He looked at the opportunity cost of production to explain comparative advantage This table shows the production outcomes of France and Poland for wine and cheese France has absolute advantage in producing both goods comparative advantage – If a country has comparative advantage it can produce a good at a lower

8 Oct 2011 International Economics Chapter 3 The Standard Theory of International Trade . ppt How to show the PPF in each nation with increasing Costs? Trade will change the distribution of real income in the nation and may

Why? Uzbekistan under the corrupt regime of Ismail Karimov. Cotton farmers are forced to sell at very low prices. Lack of incentives and running down of machinery. Use of forced labor as a substitute for incentives for farmers. Acemoglu & Robinson (MIT) Why Nations Fail May 21, 2012. 10 / 47 Why do Nations trade? Countries trade with each other when, on their own, they do not have the resources, or capacity to satisfy their own needs and wants. By developing and exploiting their Why do countries trade? Countries trade with each other when, on their own, they do not have the resources, or capacity to satisfy their own needs and wants. By developing and exploiting their domestic scarce resources, countries can produce a surplus, and trade this for the resources they need. Clear evidence of trading over long distances

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Have students read the sections entitled, “Why Do Nations Export” and “Why Do Nations Import” in the Trade Issue in Depth, either in printed format or on-line. They may do so either in class or at home, depending on your preference and student access to computers. Alternatively, you may assign the reading as a follow-up to the activity. David Ricardo (19th Century) proved mathematically that trade could still be beneficial to both countries when one country had an absolute advantage in producing all goods He looked at the opportunity cost of production to explain comparative advantage This table shows the production outcomes of France and Poland for wine and cheese France has absolute advantage in producing both goods comparative advantage – If a country has comparative advantage it can produce a good at a lower International Trade • the branch of economics concerned with the exchange of goods and services with foreign countries • purchase, sale, or exchange of goods and services across national borders 4. F there is a point on which most economists agree, it is that trade among nations makes the world bet- ter off. yet international trade can be one of the most contentious of political issues, both domestically and between governments.

Why do nations choose to trade with other nations? • How do they decide which goods to export, which to import—and with whom? • What impact does trade

Trade signifies the exchange of commodities and services. This exchange may take place between two individuals, firms or industries within the same country or it

www.globalization101.org

8 Oct 2011 International Economics Chapter 3 The Standard Theory of International Trade . ppt How to show the PPF in each nation with increasing Costs? Trade will change the distribution of real income in the nation and may 26 Nov 2001 Adam Smith's Wealth of Nations. While there were anti-mercantilist economic writers during this period, few advocated complete free trade or As Africa confronts the challenges of a global economy, it is being forced to make tough choices in negotiating new trade agreements with its major trading