Question

In: Economics

International trade is a zero-sum game? why When a nation imports materials and other inputs for...

International trade is a zero-sum game? why

When a nation imports materials and other inputs for production duty-free, its tariff policy generally results in a nominal tariff rate less than the effective tariff rate. why

The United States (US) imposes a tariff on imported stereos. This tariff would benefit US consumers looking to purchase a stereo? why

Solutions

Expert Solution

1st question answered:

Economics has evoloved as a branch of study. There were various perspectives about different topics in economics. For example- International trade.

Mercantalists during 15th till mid 17th. (till Adam Smith wrote The wealth of nations in 1776) had a belied that international trade is only advantageous to a country that exports and always has disadvantages for importers.

Bullion or precious metal goes out from importing country and exporting country gets richer and richer and importing country gets poorer and poorer.

This is azero sum game as there is only one party that is better off.

However, when Adam smith proposed that international trade is not a zero sum game. He proposed that if a country focuses on a good in which it has absolutre advantage and then if they trade in between each other than both focusing on both goods, gain more for more. Hence trade becomes a positive sum game.

Hence evolution from zero sum game to positive sum game is based on numerical evidences.

Rahul Sunny answered 6 months ago
Next > < Previous

Related Solutions

Promoting international trade is not a zero-sum game. It is a win-win proposition; both parties gain...
Promoting international trade is not a zero-sum game. It is a win-win proposition; both parties gain from trade. Consider the following: Tariffs are paid by the citizens of the country imposing tariffs, not by the citizens of the country producing the products upon which the tariffs are levied. The term “trade deficits” is a misnomer. Every country’s trade is always in balance. Trade deficits do not mean the US no longer produces anything to export. The US is the world’s...
Explain why win-win situation is better than trade is a zero-sum game.
Explain why win-win situation is better than trade is a zero-sum game.
Is trade a zero sum game, i.e. are there any losers to increased liberalization?
Is trade a zero sum game, i.e. are there any losers to increased liberalization?
16. Which one do you agree, “trade is a zero-sum game” or “trade is a win-win...
16. Which one do you agree, “trade is a zero-sum game” or “trade is a win-win situation”? Explain your answer.
Provide an example of a strictly competitive game that is not a zero-sum game.
Provide an example of a strictly competitive game that is not a zero-sum game.
When a nation begins to allow imports, consumers lose and producers gain. Explain why this is...
When a nation begins to allow imports, consumers lose and producers gain. Explain why this is correct. Demonstrate in a graph.
Consider a following zero-sum game of two players a) Reduce the initial game to a 2x2...
Consider a following zero-sum game of two players a) Reduce the initial game to a 2x2 game. Eliminate only strictly dominated strategies. In the obtained 2x2 game name Player 1’s (Row player’s) strategies “Up” and “Down” and Player 2’s (Column player’s) strategies “Left” and “Right”. b) Find all Nash equilibria of the 2x2 game (both in pure and mixed strategies) ALL ANSWERS MUST BE EXPLAINED. 2 0 1 -1 1 0 1 2 3 1 2 0
Consider a following zero-sum game of two players a) Reduce the initial game to a 2x2...
Consider a following zero-sum game of two players a) Reduce the initial game to a 2x2 game. Eliminate only strictly dominated strategies. In the obtained 2x2 game name Player 1’s (Row player’s) strategies “Up” and “Down” and Player 2’s (Column player’s) strategies “Left” and “Right”. b) Find all Nash equilibria of the 2x2 game (both in pure and mixed strategies) ALL ANSWERS MUST BE EXPLAINED. 2          0          1          -1 1          0          1          2 3...
Why economic growth is not zero-sum?
Why economic growth is not zero-sum?
Given the distinction between zero-sum and non-zero-sum games, can you think of a current international situation...
Given the distinction between zero-sum and non-zero-sum games, can you think of a current international situation that is a zero-sum conflict and the one that is no-zero-sum, explain ?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT