Explain why economists generally argue that trade creates wealth. Your answer to this question should reflect...

Explain why economists generally argue that trade creates wealth. Your answer to this question should reflect what economists argue. Whether you agrees with the view held by economists is immaterial to this question: explain the economic argument.

Expert Solution

Wealth is created through free trade across the boundaries. Trade takes place only through the voluntary exchange, The trade is based on the comparative advantage theory where both parties to trade stand to gain from such exchange. A country is able to get more from international trade relative to domestic exchange. The domestic exchange is costly for the country, thus country specializes where it has a comparative advantage and imports such good at cheaper rates from other trade partners. In this way, a country is able to produce more output with available resources which would not be possible without free trade.

Thus, the overall welfare of the country rises, and international trade makes the country wealthier. China has been the most successful country in raising the country wealth through the international trade. International trade creates the wealth but it does not ensure the equitable distribution of wealth in country.

Rahul Sunny answered 2 years ago

Explain why economists generally argue that trade creates wealth. Your answer to this question should utilize...

Explain why economists generally argue that trade creates wealth. Your answer to this question should utilize material we’ve covered in class and should reflect what economists argue. Whether one agrees with the view held by economists is immaterial to this question: explain the economic argument. 600 words or less

Explain why economists generally argue that perfect competition is the most desirable market structure. Your answer...

Explain why economists generally argue that perfect competition is the most desirable market structure. Your answer should reflect what economists argue. Whether you agrees with the view held by economists is immaterial to this question: explain the economic argument.

Explain why economists argue that all cases should be plea bargained (and why there should not...

Explain why economists argue that all cases should be plea bargained (and why there should not be trials). Also, explain why divergent beliefs can justify the existence of jury trials.

Explain why some economists argue that payment by cheque is the same as giving trade credit....

Explain why some economists argue that payment by cheque is the same as giving trade credit. If this is the case and considering that cheques are drawn on bank current accounts (as are payments by bank debit cards), do cheque payments count as money?

Should the Electoral College be abolished? Should it remain as it is? Argue your answer using...

Should the Electoral College be abolished? Should it remain as it is? Argue your answer using at least two supporting points. In addition, discuss two arguments that are counter to yours, and argue against them.

In your own words, explain (briefly) why economists generally regard wage subsidies like the Earned Income...

In your own words, explain (briefly) why economists generally regard wage subsidies like the Earned Income Tax Credit (EITC) as better policy than minimum wage laws. Be sure to note at least one downside of the EITC.

Explain how economic growth is measured and how and why economists such as Nicholas Stern argue...

Explain how economic growth is measured and how and why economists such as Nicholas Stern argue that there might be a conflict between the policy objective of growth and the policies to deal with the problems of climate change? Word Limit: 200 words

Explain why many economists argue that the free market benefits both sides of the market

a) Explain why economists argue that the economic impact of sports teams is much less than...

a) Explain why economists argue that the economic impact of sports teams is much less than usually claimed, what it costs the city, and why the city isn’t going to make its money back. b) Explain in economic terms how a sports league makes the decision to expand or not to expand. Make sure to explain the economic goals of the league.

1. How do economists define a nation’s wealth? Be as specific as possible, and explain why...

1. How do economists define a nation’s wealth? Be as specific as possible, and explain why each component is included and why others that might seem appropriate really are not.

Question