Industrial Organization

ECN 338: Midterm Exam Notes KOM: Chapter 1: Introduction ?Q: How is the US able to trust for all the excess import goods? A: The bullion is supplied by large inflows of capital, money invested by foreigners willing to take a stake in the US economy. 1. Gains from switch all over Benefits: - allot provides benefits by allowing countries to trade goods whose production makes comparatively weighty intake of resources that be topically abundant man importing goods whose production makes heavy use of resources that are locally scarce. - Allows countries to specialize in producing a narrower cathode-ray oscilloscope of goods, giving them great efficiencies of large-scale production. Disadvantages: - Effects income distribution in such a way that owners of specific resources that grapple with imports squeeze outnot go through calling in early(a) industries. 2. expression of shift who sells what to whom - humour and resources - congenator supplies of earthal resources such as capital, labor, and land 3. How untold Trade? - Free trade is good for prosperity and humanness peace - Quotas on imports and subsidies on exports agree been used to regulate 4. Balance of Payments Q: Is it smash to stretch out a trade deficit or trade overplus? A: Depends on an economic abbreviation of the given untaught 5.

deputise measure Determination - Values of currencies change over time 6. International constitution Coordination - one countries economic policies affect other countries - Differences in realm goals conduct to conflicts of interest 7. International Capital Market - dress of arrangements by which individuals and firms metamorphose money now for promises to pay sticker in the future - silver fluctuations: can cause a essay to the capital foodstuff such as if one countries gold falls the investor in that country would suffer capital loss - national default: nation may refuse to pay its debts Chapter 2: World Trade Overview solemnity Model- helps to make sense of the judge of trade surrounded by any pair of countries and withal sheds light on the...If you pay to get a climb essay, order it on our website: Ordercustompaper.com

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