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Questions tagged [free-trade]

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2
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1answer
42 views

How to calculate the intercept of an indifference curve in an Edgeworth box?

Consider an exchange economy with two goods (Good 1 and 2) and two individuals ($A$ and $B$): $A$'s utility function is $u_A(x_{A_1}, x_{A_2}) = 2x_{A_1} + 5x_{A_2}$ $B$'s utility function is $u_B(...
2
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0answers
24 views

Positive effects of a Tunisia-EU free trade agreement?

Tunisia might be signing a free trade agreement with the EU very soon. It's called ALECA or DCFTA. Many activists and labor unions are opposing such an agreement because it would result in losing ...
1
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2answers
19 views

Do free-trade agreements typically include clauses relating to services?

Do free-trade agreements typically include clauses relating to services? For example, reciprocal recognition of professional qualifications.
5
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2answers
61 views

Is free trade transitive?

If country A has a free trade agreement with country B, and country B has a free trade agreement with country C, does that mean country A effectively has a free trade agreement with country C? If the ...
1
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1answer
40 views

Is Iphone included in tariffs?

As the tariffs war getting escalating, I am curious about how the tariffs works on Iphone. Apple is an American company, and Iphone is its product. But manufactured by factory in China. Is there a ...
4
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1answer
131 views

The term “Most Favoured Nation” is misleading to me. Please explain

My understanding If Country A extends MFN status to Country B with reduced tariffs for a product, then it must treat all other nations in the same way. By this WTO encourages multilateral ...
1
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1answer
90 views

Which economical consequences could happen to a country if it forbiddes importing cars?

My country has major economical headaches each 10 years or so, like hyperinflation or defaults or things like that. It's been 17 years since the last major crisis (a larger crisis than the 1930's ...
1
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0answers
17 views

When finding targets in a trade war, does the goods balance or trade balance matter more?

By most measures, most people who look at trade balance, but it might include a good chunk of services imports/exports who might not be as readily subjected to tariffs.
0
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1answer
79 views

If South America were to unite as one country would they become an economic superpower? [closed]

Often borders can hold back different parts of the world and if they consolidated together they could succeed so much more. What would be the pros and cons If South America were to break down their ...
1
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2answers
58 views

How can China shield its public from the effects of a trade war?

I found an interesting read in the NYTimes today. It read: The Chinese government also has much greater control over the economy, allowing it to shield the public from job cuts or factory closings ...
3
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2answers
366 views

Abolishing all tariffs without reciprocity

Is a policy of abolishing tariffs without expecting other countries do so a sustainable economic policy? What are the arguments for or against it? Fear of imports is very common among people. Money ...
1
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4answers
63 views

Value vs. Price and its relation to tariffs

I’m naturally against tariffs as they impede on free trade, and end up hurting the consumer by inadvertently becoming a tax on imports as well as raising the cost of goods. So I'm trying to challenge ...
2
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1answer
28 views

Ban an import that is exported

Norway intends to shutdown the fur farming industry over the next 5+ years. In the meantime, can Norway ban imports and sales of fur without violating WTO regulation? Are there alternative strategies?...
3
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2answers
146 views

What exactly is the argument for Free Trade?

There's been a lot of talk about Free Trade. People seem to either know nothing about it, or they seem to either support or oppose it with such passion that if you didn't know any better, you would ...
4
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2answers
127 views

Adam Smith and wage gap?

Recently I was reading up on Adam Smith's economic philosophy of competition (i.e self interest) and division of labor. While I understand (and agree) with Smith's commentary that free markets and ...
4
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1answer
88 views

Have there been any attempts to turn free-trade agreements into Pareto improvements?

The textbook economic case for free trade agreements is that they constitute a Kaldor-Hicks improvement, which that in any given country the winners win more than the losers lose, when the benefits ...
5
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4answers
486 views

Do free-trade economies typically offer any protection for domestic markets?

The aimed-for outcome of the protectionist could be said to be the shielding of domestic markets from competition with an "unfair" advantage. For example, an emerging economy might have non-existent ...
1
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0answers
82 views

Are academics and policy makers confident that the benefits of free trade outweigh the downsides?

My (admittedly very limited) understanding is that free trade is seen by most academics and legislatures in the West as an ideal to strive for. The theory is that if a man in China can manufacture a ...
7
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3answers
143 views

Why don't prices of USA labor and Mexican labor equalise?

That Mexicans workers get paid less US workers is a dynamic which motivates the moving of production to Mexico. This idea can be abstracted to Developed Markets (DM) labor and Emerging Markets (EM) ...
2
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1answer
112 views

Is the Trans Pacific Partnership good or bad for the U.S?

I've explored a number of different articles and some say it's good because american consumers/business aren't impacted by the tarrifs, however some other sources say we barely export anything to the ...
0
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1answer
144 views

Are there countries with free banking?

Are there any countries in which banks do not need to follow any special regulation other than the regular business regulations. If not, are there any countries that come close? For more information ...
4
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2answers
912 views

Understanding Inflation in a video game

I don't understand where inflation occurs in a video games. Assuming "free market" ie unlimited new players can enter any universe at will. You will say that for an economy to form, both sides must be ...
3
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1answer
27 views

EU-Canada Comprehensive Economic and Trade Agreement?

Once applied, CETA will offer EU firms more and better business opportunities in Canada and support jobs in the EU, it will remove customs duties, end restrictions on access to public contracts, open-...
1
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1answer
33 views

Which institution (government or private) provides the complete data on HS (Harmonized System Code), tariff schedules for India, China and US?

Was looking out for options on building a data store having HS code and tariff schedule data for few countries, which I can use as a base for import calculations and general HS lookup. Is there a ...
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0answers
54 views

Basic theory of exchange

I'm looking for information about the basic commerce and trade. But all I've found is books about Free World Trade, Business Management and Economics. That is not what I'm looking for. I'm more ...
7
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3answers
2k views

What are some famous examples of infant industries that failed?

The Japanese and Korean car and steel industries are often touted as examples of successful infant industries. I'm trying to find some famous examples of failed infant industries. (They don't seem ...
6
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2answers
2k views

Ricardo's theory of comparative advantage for many countries

In textbooks on economics the Ricardo theory of comparative advantages is explained on the example of two countries with two goods. I suppose, there must be generalizations of Ricardo's theory for ...
3
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1answer
87 views

Does this cartoon about the transpacific partnership contain errors? [closed]

http://economixcomix.com/home/tpp/ Discussion of the cartoon spawned a very argumentative thread on reddit, with as far as I can tell no hint of a consensus. I'm specifically interested in whether ...
2
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0answers
21 views

Would trade openness reduce market-seeking FDI?

My question is motivated by thinking about the prospect of attracting FDI into developing countries. Since developing countries do not have high skilled labor or better financial / governance ...
6
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3answers
537 views

Economic consequences of a lingua franca

Although I'm specifically interested in the likely economic consequences of implementation of an official world auxiliary language, since this is only theoretical, I'd like to know what have been some ...
3
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1answer
1k views

What are some real-world examples of the different types of trading blocs?

The subsequent types of trading blocs have the following definitions: Free Trade Area -- free trade among members Customs Union -- free trade among members and common external tariff ...
14
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1answer
539 views

Have there been instances where economists have advocated a trade embargo?

Due to Comparative Advantage, it is generally accepted among economists that free-trade is the best policy for a country and increases the standard of living for the citizens of that country and the ...