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The solution to International trade
1. Suppose we refused to sell goods to any country that reduced or halted its exports to us. Who would benefit and who would lose from such retaliation? Can you suggest alternative ways to ensure import supplies? Are there any particular imported commodities that you or your firm rely on? What has happened to the supply of these imports over the years?
2. Domestic producers often base their claim for import protection in the fact that workers in country X are paid substandard wages. Is this a valid argument for protection? Can you give examples of when it did/did not work? Is there any trade restriction that the US government could impose that would have a negative/positive impact on your organization? Explain.
3. How do efficiency techniques differ in the short- versus long-run when attempting to maximize profits? What specific incentives are used in your workplace to promote efficiency? What conflicts may exist between a firm's desire to maximize profits and its ethical obligations? Can you give an example from your place of work?
Describe autarky equilibrium if all the English always consume equal quantities of wine and cloth. Describe autarky equilibrium if Portugal always consumes equal quantities of wine and cloth.
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Illustrate what would happen to the demand for iPhones if consumer income rises by 10%. Be specific. Are iPhones a normal or an inferior good.
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