How can international trade affect the exercise of domestic economic power in the United States?
What will be an ideal response?
International trade tends to restrain the exercise of domestic economic power in the United States because free trade increases the number of competitors and the number of consumer choices in the marketplace. Many industries in the United States that historically were dominated by only a few firms have had to undergo dramatic changes as a result of competition from abroad. Examples of U.S. industries that are less powerful today because of increased international competition include the automobile and steel industries.
You might also like to view...
Vertical contracts often result in
a. Higher prices b. Lower prices c. Unchanged prices d. None of the above
The absolute value of the price elasticity of demand at the midpoint of a linear demand curve is always
a. greater than one b. less than one c. one d. zero e. infinity
Assuming fixed factor prices, the short-run industry supply curve for a perfectly competitive industry is equal to the sum of the
A) AVC curves above minimum AVC. B) ATC curves above minimum ATC. C) MC curves above minimum AVC. D) MC curves above minimum ATC.
First, provide a brief explanation of what the unemployment rate measures. Second, explain how changes in each of the components of the unemployment rate can cause changes in the unemployment rate
What will be an ideal response?