Imports increase the domestic supply and lead to lower prices for consumers. Exports reduce the domestic supply and push prices upward. The net effect of international trade is an expansion in total output and higher income levels for both trading partners (law of comparative advantages). "Imports destroy jobs; exports create them. The average American is hurt by imports and helped by exports." Do you agree or disagree with this statement? Explain and support. Review absolute and comparative advantages. Personal private property protection allows for greater entrepreneurial ventures, and thus an expanding economy and job growth; can import tariffs and quotas reduce the benefits of trade? Review the mechanics of import tariffs and quotas and world price.
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Jennifer S.
Imports destroy jobs; exports create them. The average American is hurt by imports and helped by exports." Do you agree or disagree with this statement? Explain.
An economist discussing trade policy in $The$ $New$ $Republic$ wrote: "One of the benefits of the United States removing its trade restrictions [is] the gain to U.S. industries that produce goods for export. Export industries would find it easier to sell their goods abroad$-$even if other countries didn't follow our example and reduce their trade barriers." Explain in words why U.S. $export$ industries would benefit from a reduction in restrictions on $imports$ to the United States.
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