11:373:101 Lecture Notes - Lecture 23: Protectionism, Invisible Hand, Comparative Advantage
18 Jul 2017
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Topic 19 trade and exchange rates 3. Net gains from trade both trading parties can benefit. Exports and imports are both part of the gains (2) : Reality: multilateral trade makes bilateral balancing unnecessary. Import restrictions inevitably must decrease the size of our export sector miller, et al. The ,000 job (3) trade has a major impact on total number of jobs in the economy. Trade affects composition of jobs more than total number (us and japan over the last twenty years) Implications of differences among nations with respect to: In all nations, some people lose from trade (aka market operation and invisible hand forces) Relates to goal of economic justice, not efficiency. Capitalism has been described as a system of creative destruction . ""if you want a market economy, you have to allow things to change. It"s hard to blame china for using the same market forces to build its own industry.
