ECON 222 Lecture Notes - Lecture 14: Real Interest Rate, Comparative Advantage, Absolute Advantage
Document Summary
In addition, domestic citizens and firms will receive payments from patents, distribution, retail, and production of component parts: although trade creates gains for society as a whole, trade will produce some losers. In the us, low-skilled workers suffer as many of their jobs are lost through trade and outsourcing: we can measure the openness of an economy to trade by looking at either of the following, exports / gdp. Imports / gdp: because international trades creates winners and losers, most countries, including the us, impose trade barriers like tariffs. In industrialized countries, tariffs are generally low, but can be quite high for agriculture goods. Increase in real interest rate reduces net capital outflows and, therefore, net exports fall. International trade can also benefit countries through the transfer of technology from more advanced to less advanced economies: the transfer of technology will increase productivity and thus the growth rate of.
