StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Trade Case Studies - Assignment Example

Cite this document
Summary
Paul Krugman, an academic economist Princeton University was given the coveted Nobel Peace Prize in Economic Sciences in the year 2008 for his outstanding work. Krugman showed how economies of scale can aid in giving an explanation of the trade patterns and the production…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96.8% of users find it useful
Trade Case Studies Assignment
Read Text Preview

Extract of sample "Trade Case Studies"

Trade Case Studies Trade Case Studies Paul Krugman, an academic economist Princeton was given the coveted Nobel Peace Prize in Economic Sciences in the year 2008 for his outstanding work. Krugman showed how economies of scale can aid in giving an explanation of the trade patterns and the production location activity. His less-scholarly work adds to the respect he has gained for the contributions that have gained him the Nobel Prize because he has come up with a new theory of trade in regards to world trade that previous theories could not.

Moreover, his theories have become essential in the analysis of economic geography and the flows of trade commerce among the developed countries (Worek, 2008, p.23). The models of trade developed by Paul Krugman can also explain intra-industry trade as an outcome of economies of scale, monopolistic competition, and consumer preference for product diversity. The development in the field of geography led to his work crediting especially since it helps to explain the core periphery pattern of urbanization and migration as witnessed in much of the world.

Also, Paul Krugman has made noteworthy contributions to the research on strategic policies of trade and currency crises.2. The trade businesses which have trade patterns that conform to Krugman’s theory are clothing, shoes, restaurants, and service businesses in major cities. The trade patterns conforming to Krugman’s theory exhibited by these businesses show that the costs of production reduce with increasing market prices resulting in lower equilibrium prices for the products. 3. Globalization can have challenging drawbacks to some countries in the world.

First, the importation of cheap products from developing countries could lead to high levels of unemployment in developed countries due to the high costs of production. Secondly, the specialization in particular products by some countries could lead to unemployment in other non-prioritised sectors of the economy. Finally, globalization has led to intense competition for upcoming businesses in developing countries and the ‘Dumping’ of goods below the cost of production price harming the businesses in those countries (Perloff, 2004, p.7). Globalization as a world issue of concern has had a positive effect on my life due to the creation of a free trade zone, elimination of trade restrictions such as trade tariffs, a wide range of products and services to choose from, and reduction of transportation costs, for example, the cost of shipping for goods2.1.The ignorance of the possible job losses in the dry-cleaning business has the overall effect of raising the prices and costs associated with the restrictions in trade.

The dry cleaners can hardly oppose the tariff on wire hangers from China due to the rising costs of transacting business countrywide and the need to solicit customers for unused hangers. The US government imposition of tariffs on wire hangers from China benefits the US manufacturers of wire hangers at the expense of the dry cleaners and the clients who would benefit alternatively from the low-priced imports from China (Duesterberg & Preeg, 2003, p.5).2. Tax rebates or export subsidies should factor in government analysis of trade policies in order to avoid the double taxation of exports and improve the nation’s competitive advantage in international markets.

A tax rebate by the government should consider the real cost price of products in international markets and fuel the advancement of its companies’ exports in the international markets. The government should ensure that the subsidy on exports is not a heavy fiscal burden (Perloff, 2004, p.15).3. There are inadvertent environmental benefits from the imposition of tariffs of wire hangers from China, for example, the recycling of wire hangers prevents environmental pollution and reduces business costs.

The US government cannot encourage dry cleaners and clients to reuse wire hangers without resorting to an imposition of tariffs on Chinese wire hanger manufacturers to protect the US wire hanger manufacturing industry, and also avoid the high levels of unemployment resulting from increased prices and costs of production.List of ReferencesDUESTERBERG, T. J., & PREEG, E. H. (2003). U.S. manufacturing the engine for growth in a global economy. Westport, Conn, Praeger. http://public.eblib.com/EBLPublic/PublicView.do?ptiID=496804.

PERLOFF, J. M. (2004). Microeconomics. Boston, Pearson Addison Wesley.WOREK, M. (2008). Nobel: a century of prize winners. Richmond Hill, Ont, Firefly Books

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Trade Case Studies Assignment Example | Topics and Well Written Essays - 500 words”, n.d.)
Trade Case Studies Assignment Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/macro-microeconomics/1642040-trade-case-studies-assignment
(Trade Case Studies Assignment Example | Topics and Well Written Essays - 500 Words)
Trade Case Studies Assignment Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/macro-microeconomics/1642040-trade-case-studies-assignment.
“Trade Case Studies Assignment Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/macro-microeconomics/1642040-trade-case-studies-assignment.
  • Cited: 0 times

CHECK THESE SAMPLES OF Trade Case Studies Assignment

Knowledge Synthesis Analysis

Synthesis of Study Results The first and most important part of data synthesis is to compare the overall findings of each of the studies.... Due to the qualitative nature of these studies, no correlation co-efficient or similar statistical device could be used in the analysis of the study and thus the synthesis is based upon the general words and emotions that appear in each study.... As previously mentioned, the word ‘difficult' appears in all four studies, and the word ‘guilt' seems to be a prominent emotion throughout, although it is only explicitly mentioned and discussed in the work of Gladstone et al (2006), and the emotions of emotional turmoil and emotional adaptation as noted above....
8 Pages (2000 words) Assignment

Business Management in Nursing

Methods of Instruction The instructor will make use of case studies, lecturers, videos, student experiences and responses, guest speakers and questions and exercises from main reading materials.... Course Content The following key topics shall be covered in this course; Management functions and decision making in which case topics under management like planning, staffing, directing, organizing and controlling shall be covered.... Employee and Healthcare organizational development in which case issues like change-management plan, organizational problem identification and resolution, behavioral-science knowledge, organizational behavior, linear and holistic organizational development, and the business management code of ethics shall be covered....
4 Pages (1000 words) Assignment

The Nine Moods of a Magnificent Manager

In the paper “The Nine Moods of a Magnificent Manager” the author describes how to challenge the stressful management situations by practical application of the moods.... This seminar is conducted for the benefit of those in the managerial cadre to fine-tune their management skills.... hellip; The author states that the management consultant argues thus: “The subject of management is an overcrowded field....
7 Pages (1750 words) Assignment

Telecommunications and Networking

More servers' installation is another edge that can be enjoyed in the case of incumbent technology (Terry, 2013).... The performance trade-off is a serious factor in reading an Optimized database.... The paper examines the concepts of telecommunication and networking and cloud computing....
9 Pages (2250 words) Assignment

Unsaturated Problem Soils: Expansive and Collapsing

studies also show that expansive soils, when on slopes, can cause landslides.... The goal of the current assignment is to briefly discuss the issue of soil expansion and collapse.... Therefore, the writer of the assignment "Unsaturated Problem Soils: Expansive and Collapsing" describes the causes of expansive soil as well as its treatment....
1 Pages (250 words) Assignment

Equal Consideration for Every Species

In this case, it is much better to simply reduce meat consumption and increase reliance on vegetables gradually, and allow this to happen across generations and cultures rather than immediate imposition that can cause dissent among consumers.... The paper "Equal Consideration for Every Species" discusses that mutual, as well as compromises between opposing sides, must be established since in essence both groups consist of individuals with inherent values and are therefore equally liable in accepting other living beings' values as well....
8 Pages (2000 words) Assignment

The Role of Non-governmental Organisations

The author also discusses the reason as to why the Middle East and North Africa are significant to the European Union Institute for Security studies … An INGO is an inter-non- governmental organization that is composed of treaties and agreement among countries and is mandated with the task of maintaining global peace and harmony.... An example of this organization is the world trade organizations....
7 Pages (1750 words) Assignment

Introduction to Research Methods

The document includes numerous psychology studies and experiments.... In this case, a higher number of lectures attended resulted in a higher grade at the end of the term.... The paper "Introduction to Research Methods" contains a manual about research methods in psychology and provides clarification for students about the usage of these methods in practice....
23 Pages (5750 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us