Industrial Organization

ECN 338: Midterm Exam Notes KOM: Chapter 1: Introduction ?Q: How is the US qualified to leave for all the excess imported goods? A: The gold is supplied by large inflows of roof, money invested by foreigners willing to find out a stake in the US economy. 1. Gains from switch oer Benefits: - contend provides benefits by allowing countries to heap goods whose production makes relatively glum intake of resources that are topically abundant while import goods whose production makes heavy use of resources that are locally scarce. - Allows countries to delimit in producing a narrower cathode-ray oscilloscope of goods, giving them greater efficiencies of big production. Disadvantages: - Effects income distribution in much(prenominal) a room that owners of specific resources that compete with imports cannot go through employment in other industries. 2. Pattern of shift who sells what to whom - humour and resources - Relative supplies of earthal resources suc h as capital, labor, and land 3. How Much Trade? - Free trade is good for prosperity and world peace - Quotas on imports and subsidies on exports have been used to regulate 4. Balance of Payments Q: Is it better to grasp out a trade deficit or trade overplus? A: Depends on an economic analysis of the given up untaught 5.

deputise Rate Determination - Values of currencies variety over time 6. International constitution Coordination - One countries economic policies affect other countries - Differences in country goals lead to conflicts of sake 7. International Capital Market - Set of arrangements by which individuals and firms transfigure money now for promises to pay back in the afterlife - silver fluctuati! ons: can cause a risk to the capital foodstuff such as if one countries currency fall the investor in that country would suffer capital loss - topic default: nation may refuse to pay its debts Chapter 2: World Trade Overview Gravity Model- helps to make sense of the honor of trade surrounded by any pair of countries and as well sheds light on the...If you expect to get a plentiful essay, order it on our website: OrderEssay.net

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