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20/04/2021 Client: muhammad11 Deadline: 2 Day

Your initial post should be 75-150 words in length, and is due on Sunday. By Tuesday, you should respond to two additional posts from your peers.

Imports increase the domestic supply and lead to lower prices for consumers. Exports reduce the domestic supply and push price upward. The net effect of international trade is an expansion in total output and higher income levels for both trading partners (law of comparative advantages).

"Imports destroy jobs; exports create them. The average American is hurt by imports and helped by exports." Do you agree or disagree with this statement? Explain and support.

Review absolute and comparative advantages. Personal private property protection allows for greater entrepreneurial ventures, and thus an expanding economy and job growth; can import tariffs and quotas reduce the benefits of trade? Review the mechanics of import tariffs and quotas and world price.The thought international trade hurts American workers just doesn't hold up when you consider the long term effects. Initially an import could sell for less than a domestic competitor but the money is made back on the export which only happens if its worth trading. This is worthiness of trade comes from a firms advantages in that industry; absolute advantage means the country is better in a particular product, and comparative advantage deals with opportunity cost of doing one thing over another. Also if domestic competitors can't beat foreign imports they must learn to become more competitive, which benefits the consumer or the resources can be reallocated to another industry that domestic companies do better in than foreign firms. Things like tariffs and quotas appear to help domestic firms but if you look closely they benefit a firm and hurt the consumer by artificially raising the prices and stifle innovation in an industry.

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