DukePencilParrot18
Could I please get help check the grammar for all the answers to…
Could I please get help check the grammar for all the answers to questions
1. What is the role of business in a global economy? How does international business impact the US economy? Explain and use specific examples when appropriate.
Businesses play an important role in global economy by expanding the boundaries of
trade beyond a single country or a region. There is no country in the world that has
unlimited natural resources. International businesses facilitate international trade
(overcoming the scarcity of resources in one country vs. the other), exchange information,
help cross-border investments and growth of the global economy. International trade has
its benefits and drawbacks. On one hand, international trade helps create employment
opportunities, higher wages for employees and purchasing power for the buyers. For
example, the new Boeing 787 is manufactured with the help of several nations/countries
that provide parts for the plane. On the other hand, if natural disasters happen, like
Hurricane Andrew in 1960 that destroyed citrus plants in Florida and the largest citrus
producing industry in the United States, it negatively impacts the economy, people
(employees) and international trade.
How do entrepreneurs, manufacturers, and governments decide what is available to trade with other nations? Explain and discuss.
The entrepreneurs, manufacturers, and governments take two main factors into
consideration when deciding what they have available to trade with other nations:
a) Opportunity cost – the value lost by deciding to invest or purchase one thing over
another. China buys cotton from US rare than growing it locally. However, China then
exports finished goods, like clothing, to the US.
b) Comparative advantage – ability of a country make a certain product for less. US has a
comparative advantage in technology and has become a largest exporter of services for
some sophisticated tools and devises.
What are the differences between domestic and world trade? What are the similarities? Compare and contrast domestic trade and world trade, explaining the similarities and differences between the two.
Some of the differences between domestic and world trades are: Domestic trades involve
exchange of goods and services within the boundaries of that country, while international
grades involve the trade transactions between multiple countries.
When the prices for goods or services are set by a certain country, those prices would be
typically higher for other countries than if they were to sell the same product within the
country. Also, quality standard for certain products could be different depending on a
country.
Some of the similarities are: Most of the domestic economies either free market
economies or mixed economies. Same with global trades. Countries are free to set their
prices and the products they would want to exchange on the international trade arena.
All trades – domestic or international – involve change of goods and currency. However, a
international trade may involve multiple currencies as well.
How do imports affect the US economy? How do exports impact the US economy? Does the impact an import or export has on the US economy differ based on the specific type of import or export? Explain.
When imports (goods and services we import from other countries) and exports (goods
and services we export to other countries) are out of balance US may experience a trade
deficit or a surplus. When the value of goods we import from other countries exceed our
exports, we are buying more than selling and it negatively impacts the economy by
creating a trade deficit. Visa versa, a trade surplus – when we export more than import,
creates a positive balance of trade. Any trade deficit is bad for out economy as it costs
people their jobs, purchasing power and, ultimately, weakens our economy.
An import or export of certain goods may have a different effect on the economy if those
specific goods or services are included in a list of imposed tariffs. The higher the traffic %,
the more expensive it is for s country to export certain goods they have in access, intern
negatively impacting the country’s economy.
What are some of the benefits and drawbacks of protectionism? Analyze and critique some of the most recent instances of protectionism by the US government and past and current presidents, including tariffs.
When international trade conflicts arise, countries may impose tariffs, limit imports or take
other actions to make imports more expensive for other countries – all part of
protectionism. However, that may backfire, as it happened to the US in 2018 when the
president imposed tariffs on washing machines imported from China – fro 20-to 50% over
the initial 1.2 million of imported machines. China, in turn, imposed tariffs on several
goods imported from the US, including soybeans. High tariffs may not necessarily resolve
trading defunct, and can negatively impact consumers when prices for the goods go up.
