What are the benefits and problems associated with international trade?
What will be an ideal response?
The benefits of international trade stem from the assumptions of a free and open market. Free trade across countries allows consumers and producers to benefit from specialization. A country with a comparative advantage in producing a particular product (due to its proximity to raw materials, skills and talents of its people or another factor) can capitalize on its strengths to produce that product more efficiently than other countries. This reduces the price to all consumers and frees other economies to develop their own comparative advantage. Free trade increases the size of markets and allows companies to take advantage of increased economies of scale at the same time it reduces the monopoly power of domestic (sometimes inefficient) producers. Countries benefit from increased growth and income while consumers enjoy lower prices and greater choices. The downside of international trade, however, is the loss of jobs and wealth as the economy adjusts to increased free trade. Faster growth may increase pollution and environmental degradation. The emphasis on comparative advantage overlooks the importance of corporate strategies to creating a competitive advantage and ignores the importance of governmental policy in creating these advantages. Finally market imperfections can distribute the benefits of international trade unevenly. Most particularly, unequal bargaining power between countries or between labor and capital owners can make it easier for exploitation to occur.
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a. depend upon whether the trial is civil or criminal. b. vary according to the particular state where the jurors reside. c. vary according to the judge's wishes. d. be affected by both whether the trial is civil or criminal and by the particular state where the jurors reside, but not according to the judge's wishes.
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A) may be denominated in dollars or in the currency of another country. B) are always denominated in U.S. dollars. C) are always denominated in the foreign currency. D) may not be split so that part of it is denominated in one currency and the balance is in another.