10/16 notes

Question 1

what does trade go with on a graph

Answer 1

consumer surplus (A) CS=A

-CS=A+B+C+D

Question 2

what is the virtue of trade

Answer 2

how much it helps consumers

Question 3

Producer surplus on graph with trade

Answer 3

PS=B+E

Trade = E

Question 4

what is the difference on a graph from Qd to Qs

Answer 4

import

Question 5

who does trade benefit

Answer 5

consumers, consumers are pro trade

Question 6

protectionsism

Answer 6

refers to the government policies that restrict international trade to help domestic industries

Question 7

Infant industry

Answer 7

Industry that is in its early stages of development. They lack the experience and size to compete against established competitors abroad

Question 8

what is more aggressive than tariffs

Answer 8

quota

Question 9

what happens to price with tariffs

Answer 9

price goes up

Question 10

quota

Answer 10

numerical limit: government imposed trade restriction that limits number of monetary value of goods that a country can import or export during a particular period

Question 11

is protectionism old school or new school

Answer 11

old

Question 12

what is the new school argument

Answer 12

antiglobalism

Question 13

globalism

Answer 13

Process in which businesses, organizations and countries begin operating on an international scale