Econ 1101 1st Edition Lecture 19 Outline of Last Lecture 1 Gains from trade comparative advantage 2 Gains from trade increasing returns 3 Real world example international division of labor Outline of Current Lecture 4 Trade Policy 5 China and US Trade 6 MobLab Experiment Current Lecture Bilateral Trade Agreement you lower tariffs I lower tariffs Example US Korea Multilateral Trade Agreement Everyone to lower tariffs on each other Example North American Free Trade Agreement Unilateral Free Trade I lower tariffs take down barriers regardless of what you do Example England repeals corn laws tariff China US Trade Skilled college educated unskilled no college education needed China has a comparable advantage when it comes to unskilled labor US has comparable advantage in high skilled labor If the wages are low for a certan good in China the US has more interest in a market share Manufacturing goods is almost completely wiped out in US One take is that China US trade is mutually beneficial Much of trade isn t actual goods it is Goods to the US and money to China US has a comparative advantage in consumption LOL US is paying for imports by going into debt These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute US blames China for manipulating the Renminbi to promote exports and discourage consumption US is NOT innocent Germany like China has a huge trade surplus so why is Germany saving but the US not Intellectual Property US sengs China IDEAS and research and China sends NOTHING back Chinas Policies There is no doubt they are aggressively subsidizing green energy because the price has fallen 2 3 We put huge tariffs on green energy to encourage domestic innovation on sales to keep up with the innovations and inventions in green energy throughout the world so we don t fall behind
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