[Pay for Essay] – Discuss Benefits of International Trade

Your initial post should be 75-150 words in length, and is due on Sunday. By Tuesday, you should respond to two additional posts from your peers.

Imports increase the domestic supply and lead to lower prices for consumers. Exports reduce the domestic supply and push price upward. The net effect of international trade is an expansion in total output and higher income levels for both trading partners (law of comparative advantages).

“Imports destroy jobs; exports create them. The average American is hurt by imports and helped by exports.” Do you agree or disagree with this statement? Explain and support.

Review absolute and comparative advantages. Personal private property protection allows for greater entrepreneurial ventures, and thus an expanding economy and job growth; can import tariffs and quotas reduce the benefits of trade? Review the mechanics of import tariffs and quotas and world price.

View your discussion rubric.

Mitchell Peck

Week Eight Discussion

COLLAPSE

The thought international trade hurts American workers just doesn’t hold up when you consider the long term effects. Initially an import could sell for less than a domestic competitor but the money is made back on the export which only happens if its worth trading. This is worthiness of trade comes from a firms advantages in that industry; absolute advantage means the country is better in a particular product, and comparative advantage deals with opportunity cost of doing one thing over another. Also if domestic competitors can’t beat foreign imports they must learn to become more competitive, which benefits the consumer or the resources can be reallocated to another industry that domestic companies do better in than foreign firms. Things like tariffs and quotas appear to help domestic firms but if you look closely they benefit a firm and hurt the consumer by artificially raising the prices and stifle innovation in an industry.

Robert Kinne

Week 8 Discussion

COLLAPSE

I do not agree with the statement “Imports destroy jobs; exports create them. The average American is hurt by imports and helped by exports.”. I believe that imports can potentionally hurt certain areas of the market but only under certain conditions. There are some instance where one country may be the only one that produces a certain good or product due to the fact that they may be the only country that has access to the resources or technology required to produce that specific good or product. In this case that country would have an absolute advantage and others would be forced to import that product if there was a consumer want or need for it. There are other situation where certain goods or products are produced by many country and those countries trade in a manner that benefits both sides. When the trading is mutually beneficial for both side there are comparitive advantages for those involved.

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