SlideShare une entreprise Scribd logo
1  sur  11
Télécharger pour lire hors ligne
International
 Economics
Reasons for Trade
Abraham Lincoln was once advised to buy cheap iron rails
from Britain to finish the transcontinental railroad. He
replied, "It seems to me that if we buy the rails from
England, then we've got the rails and they've got the
money. But if we build the rails here, we've got our rails
and we've got our money."

To paraphrase: "If I buy meat from the butcher, then I
get the meat and he gets my money. But if I raise a cow in
my backyard for three years and slaughter it myself, then
I've got the meat and I've got my money.“
"You could say that globalization, driven not by human
goodness but by the profit motive, has done far more good
for more people than all the foreign aid and soft loans
provided by well-intentioned governments and aid
agencies."
                       -Paul Krugman


What evidence is there to support Krugman's claim?

What evidence is there to refute it?
Why do nations trade?

Three facts help answer this question:

• Uneven distribution of natural, human and capital resources

• Efficient production requires different combinations of
  resources

• People may simply prefer products made in other countries
  due to non-price attributes
Opportunity cost: the cost to society of producing a
particular good is what it could have produced with
those resources instead. The opportunity cost is
what was given up in order to produce something.
Comparative advantage: When a country can produce
a good or service at a lower domestic opportunity cost
than a potential trading partner.
Absolute advantage: When a country can produce a
particular good or service more efficiently than
another country. Fewer resources
are required to produce a particular good.
The principle of comparative advantage: says that
total output will be greatest when each nation produces
the good for which it has the lowest domestic
opportunity cost. Nations should specialize in the goods
they produce at the lowest opportunity cost, and trade
with other nations for other goods in which they do not
have a comparative advantage.
Goods     Televisions Financial
                      Services

Country
China         50          40

UK            10          30
•Who has the absolute advantage in television
  production? ________________ Financial services?
  ________________.

  •Who has the comparative advantage in television
  production? __________________ Financial services?
  __________________.

  •How do you know?
  •Should trade take place? If so, who should produce
  what?



5/31/2012
PPC for China and the UK
TVs
50

             China

10          UK


                     30   40

            Financial services

Production Possibilities Curve shows the different
quantities of two goods that an economy could
efficiently produce with limited productive
resources

5/31/2012
PPC analysis:

  •Clearly China has an absolute advantage in both TVs
  and financial services.

  •With its existing resources, China can produce more
  TVs and more financial services than the UK.




5/31/2012
Should China and the UK trade? If so, who should
specialize in what?

•China can either produce 50 TVs or 40 financial services.
To produce one TV it must give up 0.8 financial services.
1 financial service "costs" China 1.25 TVs

•The UK can either produce 10 TVs or 30 financial
services. To produce 1 TV it must give up 3 financial
services. 1 financial service only "costs" .33 TVs.

Financial services "cost" the UK less than they do
China. TVs "cost" China less than they do the UK.
China should produce TVs, the UK financial services

5/31/2012

Contenu connexe

En vedette

Nuremberg principle swahili
Nuremberg principle   swahiliNuremberg principle   swahili
Nuremberg principle swahiliVogelDenise
 
RESEARCH: Institution
RESEARCH: InstitutionRESEARCH: Institution
RESEARCH: InstitutionKIMSOP
 
092712 julian assange (president obama's audacity) - lao
092712   julian assange (president obama's audacity) - lao092712   julian assange (president obama's audacity) - lao
092712 julian assange (president obama's audacity) - laoVogelDenise
 
Obama read my lips -obama fraudgate (thai)
Obama   read my lips -obama fraudgate (thai)Obama   read my lips -obama fraudgate (thai)
Obama read my lips -obama fraudgate (thai)VogelDenise
 
04/14/13 PUBLIC NOTICE (03/11/13 FAX TO BARACK OBAMA) - finnish
04/14/13   PUBLIC NOTICE (03/11/13 FAX TO BARACK OBAMA) - finnish04/14/13   PUBLIC NOTICE (03/11/13 FAX TO BARACK OBAMA) - finnish
04/14/13 PUBLIC NOTICE (03/11/13 FAX TO BARACK OBAMA) - finnishVogelDenise
 
050113 - FAX TO JUDY CLARKE (Boston Marathon Bombing) - haitian creole
050113 - FAX TO JUDY CLARKE (Boston Marathon Bombing) - haitian creole050113 - FAX TO JUDY CLARKE (Boston Marathon Bombing) - haitian creole
050113 - FAX TO JUDY CLARKE (Boston Marathon Bombing) - haitian creoleVogelDenise
 
희민이의 포트폴리오
희민이의 포트폴리오희민이의 포트폴리오
희민이의 포트폴리오Hee-min Yoon
 
WASHINGTON DC - Wikipedia(031416)
WASHINGTON DC - Wikipedia(031416)WASHINGTON DC - Wikipedia(031416)
WASHINGTON DC - Wikipedia(031416)VogelDenise
 
TRAYVON MARTIN (Sanford Police Officers Wanted To Arrest Shooter George Zimme...
TRAYVON MARTIN (Sanford Police Officers Wanted To Arrest Shooter George Zimme...TRAYVON MARTIN (Sanford Police Officers Wanted To Arrest Shooter George Zimme...
TRAYVON MARTIN (Sanford Police Officers Wanted To Arrest Shooter George Zimme...VogelDenise
 
Heros power point
Heros power pointHeros power point
Heros power pointlaurabethb
 
BAKER DONELSON - INVISIBLE PRACTICES - PULLING THE STRINGS BEHIND-THE-SCENE P...
BAKER DONELSON - INVISIBLE PRACTICES - PULLING THE STRINGS BEHIND-THE-SCENE P...BAKER DONELSON - INVISIBLE PRACTICES - PULLING THE STRINGS BEHIND-THE-SCENE P...
BAKER DONELSON - INVISIBLE PRACTICES - PULLING THE STRINGS BEHIND-THE-SCENE P...VogelDenise
 

En vedette (16)

Nuremberg principle swahili
Nuremberg principle   swahiliNuremberg principle   swahili
Nuremberg principle swahili
 
RESEARCH: Institution
RESEARCH: InstitutionRESEARCH: Institution
RESEARCH: Institution
 
092712 julian assange (president obama's audacity) - lao
092712   julian assange (president obama's audacity) - lao092712   julian assange (president obama's audacity) - lao
092712 julian assange (president obama's audacity) - lao
 
โครงงาน ไอพอด
โครงงาน ไอพอดโครงงาน ไอพอด
โครงงาน ไอพอด
 
Obama read my lips -obama fraudgate (thai)
Obama   read my lips -obama fraudgate (thai)Obama   read my lips -obama fraudgate (thai)
Obama read my lips -obama fraudgate (thai)
 
Aggelopoulos cv
Aggelopoulos cvAggelopoulos cv
Aggelopoulos cv
 
04/14/13 PUBLIC NOTICE (03/11/13 FAX TO BARACK OBAMA) - finnish
04/14/13   PUBLIC NOTICE (03/11/13 FAX TO BARACK OBAMA) - finnish04/14/13   PUBLIC NOTICE (03/11/13 FAX TO BARACK OBAMA) - finnish
04/14/13 PUBLIC NOTICE (03/11/13 FAX TO BARACK OBAMA) - finnish
 
050113 - FAX TO JUDY CLARKE (Boston Marathon Bombing) - haitian creole
050113 - FAX TO JUDY CLARKE (Boston Marathon Bombing) - haitian creole050113 - FAX TO JUDY CLARKE (Boston Marathon Bombing) - haitian creole
050113 - FAX TO JUDY CLARKE (Boston Marathon Bombing) - haitian creole
 
희민이의 포트폴리오
희민이의 포트폴리오희민이의 포트폴리오
희민이의 포트폴리오
 
week3_presentation
week3_presentationweek3_presentation
week3_presentation
 
ปก
ปกปก
ปก
 
WASHINGTON DC - Wikipedia(031416)
WASHINGTON DC - Wikipedia(031416)WASHINGTON DC - Wikipedia(031416)
WASHINGTON DC - Wikipedia(031416)
 
Paspoort I4talent
Paspoort I4talentPaspoort I4talent
Paspoort I4talent
 
TRAYVON MARTIN (Sanford Police Officers Wanted To Arrest Shooter George Zimme...
TRAYVON MARTIN (Sanford Police Officers Wanted To Arrest Shooter George Zimme...TRAYVON MARTIN (Sanford Police Officers Wanted To Arrest Shooter George Zimme...
TRAYVON MARTIN (Sanford Police Officers Wanted To Arrest Shooter George Zimme...
 
Heros power point
Heros power pointHeros power point
Heros power point
 
BAKER DONELSON - INVISIBLE PRACTICES - PULLING THE STRINGS BEHIND-THE-SCENE P...
BAKER DONELSON - INVISIBLE PRACTICES - PULLING THE STRINGS BEHIND-THE-SCENE P...BAKER DONELSON - INVISIBLE PRACTICES - PULLING THE STRINGS BEHIND-THE-SCENE P...
BAKER DONELSON - INVISIBLE PRACTICES - PULLING THE STRINGS BEHIND-THE-SCENE P...
 

Similaire à International economics + reasons to trade

public service news - starting with the internet - william perrin salford
public service news - starting with the internet - william perrin salfordpublic service news - starting with the internet - william perrin salford
public service news - starting with the internet - william perrin salfordwilliam perrin
 
Local tv starting from the internet post IFNC
Local tv starting from the internet post IFNCLocal tv starting from the internet post IFNC
Local tv starting from the internet post IFNCwilliam perrin
 
Living Wage Norwich Presentation
Living Wage Norwich PresentationLiving Wage Norwich Presentation
Living Wage Norwich PresentationLWNadmin
 
Bu204 Macroeconomics Unit 2 Assignment Essay
Bu204 Macroeconomics Unit 2 Assignment EssayBu204 Macroeconomics Unit 2 Assignment Essay
Bu204 Macroeconomics Unit 2 Assignment EssayApril Wbnd
 
Ten Principles of Economics and Concept of Demand and Supply by Prof. K K Kri...
Ten Principles of Economics and Concept of Demand and Supply by Prof. K K Kri...Ten Principles of Economics and Concept of Demand and Supply by Prof. K K Kri...
Ten Principles of Economics and Concept of Demand and Supply by Prof. K K Kri...BIMTECH Greater Noida
 
2017-econ-lecture-17.pptx
2017-econ-lecture-17.pptx2017-econ-lecture-17.pptx
2017-econ-lecture-17.pptxPatricioDanti
 
Topic 9 - (Add) International Trade
Topic 9 - (Add) International TradeTopic 9 - (Add) International Trade
Topic 9 - (Add) International TradeFatin Nazihah Aziz
 
Institutions and Audiences: British Film
Institutions and Audiences: British FilmInstitutions and Audiences: British Film
Institutions and Audiences: British FilmM Taylor
 
Investigating the bbc
Investigating the bbcInvestigating the bbc
Investigating the bbc1Ahmedali
 
The External Environment That Influences Apple
The External Environment That Influences AppleThe External Environment That Influences Apple
The External Environment That Influences AppleTraci Webb
 
alt.local.tv local video news with public service values
alt.local.tv local video news with public service valuesalt.local.tv local video news with public service values
alt.local.tv local video news with public service valueswilliam perrin
 
International Business.pptx
International Business.pptxInternational Business.pptx
International Business.pptxharrisrahman2
 
How To Find Good Sources For Research Paper. How To Wr
How To Find Good Sources For Research Paper. How To WrHow To Find Good Sources For Research Paper. How To Wr
How To Find Good Sources For Research Paper. How To WrJessica Oatis
 
Essay Writing Tips For Highschool Students
Essay Writing Tips For Highschool StudentsEssay Writing Tips For Highschool Students
Essay Writing Tips For Highschool StudentsBeth Hall
 
Weather Writing Center By Lisa Bohaty TPT
Weather Writing Center By Lisa Bohaty TPTWeather Writing Center By Lisa Bohaty TPT
Weather Writing Center By Lisa Bohaty TPTJennifer Rivera
 

Similaire à International economics + reasons to trade (20)

public service news - starting with the internet - william perrin salford
public service news - starting with the internet - william perrin salfordpublic service news - starting with the internet - william perrin salford
public service news - starting with the internet - william perrin salford
 
Local tv starting from the internet post IFNC
Local tv starting from the internet post IFNCLocal tv starting from the internet post IFNC
Local tv starting from the internet post IFNC
 
Living Wage Norwich Presentation
Living Wage Norwich PresentationLiving Wage Norwich Presentation
Living Wage Norwich Presentation
 
Bu204 Macroeconomics Unit 2 Assignment Essay
Bu204 Macroeconomics Unit 2 Assignment EssayBu204 Macroeconomics Unit 2 Assignment Essay
Bu204 Macroeconomics Unit 2 Assignment Essay
 
Ten Principles of Economics and Concept of Demand and Supply by Prof. K K Kri...
Ten Principles of Economics and Concept of Demand and Supply by Prof. K K Kri...Ten Principles of Economics and Concept of Demand and Supply by Prof. K K Kri...
Ten Principles of Economics and Concept of Demand and Supply by Prof. K K Kri...
 
Lecture 1 introduction
Lecture 1   introductionLecture 1   introduction
Lecture 1 introduction
 
Unit 2 Powerpoint notes
Unit 2 Powerpoint notesUnit 2 Powerpoint notes
Unit 2 Powerpoint notes
 
2017-econ-lecture-17.pptx
2017-econ-lecture-17.pptx2017-econ-lecture-17.pptx
2017-econ-lecture-17.pptx
 
Topic 9 - (Add) International Trade
Topic 9 - (Add) International TradeTopic 9 - (Add) International Trade
Topic 9 - (Add) International Trade
 
Institutions and Audiences: British Film
Institutions and Audiences: British FilmInstitutions and Audiences: British Film
Institutions and Audiences: British Film
 
Chap001.ppt
Chap001.pptChap001.ppt
Chap001.ppt
 
L.n international trade
L.n international tradeL.n international trade
L.n international trade
 
Investigating the bbc
Investigating the bbcInvestigating the bbc
Investigating the bbc
 
The External Environment That Influences Apple
The External Environment That Influences AppleThe External Environment That Influences Apple
The External Environment That Influences Apple
 
alt.local.tv local video news with public service values
alt.local.tv local video news with public service valuesalt.local.tv local video news with public service values
alt.local.tv local video news with public service values
 
International Business.pptx
International Business.pptxInternational Business.pptx
International Business.pptx
 
How To Find Good Sources For Research Paper. How To Wr
How To Find Good Sources For Research Paper. How To WrHow To Find Good Sources For Research Paper. How To Wr
How To Find Good Sources For Research Paper. How To Wr
 
ECO.pdf
ECO.pdfECO.pdf
ECO.pdf
 
Essay Writing Tips For Highschool Students
Essay Writing Tips For Highschool StudentsEssay Writing Tips For Highschool Students
Essay Writing Tips For Highschool Students
 
Weather Writing Center By Lisa Bohaty TPT
Weather Writing Center By Lisa Bohaty TPTWeather Writing Center By Lisa Bohaty TPT
Weather Writing Center By Lisa Bohaty TPT
 

Plus de PaolaReyesR

Free trade & protectionism part 1-international economics
Free trade & protectionism part 1-international economicsFree trade & protectionism part 1-international economics
Free trade & protectionism part 1-international economicsPaolaReyesR
 
Free trade & protectionism part 1-international economics
Free trade & protectionism part 1-international economicsFree trade & protectionism part 1-international economics
Free trade & protectionism part 1-international economicsPaolaReyesR
 
Indigenas forestales
Indigenas forestalesIndigenas forestales
Indigenas forestalesPaolaReyesR
 
Iisec dt-2011-10
Iisec dt-2011-10Iisec dt-2011-10
Iisec dt-2011-10PaolaReyesR
 
Iisec dt-2011-10
Iisec dt-2011-10Iisec dt-2011-10
Iisec dt-2011-10PaolaReyesR
 
Economia boliviana
Economia bolivianaEconomia boliviana
Economia bolivianaPaolaReyesR
 
Distribution of income
Distribution of incomeDistribution of income
Distribution of incomePaolaReyesR
 
Macroeconomic models ppp
Macroeconomic models pppMacroeconomic models ppp
Macroeconomic models pppPaolaReyesR
 
Pp growthanddevelopment
Pp growthanddevelopmentPp growthanddevelopment
Pp growthanddevelopmentPaolaReyesR
 
Extended essay sample
Extended essay sampleExtended essay sample
Extended essay samplePaolaReyesR
 
Extended essay format_06
Extended essay format_06Extended essay format_06
Extended essay format_06PaolaReyesR
 
Unit 3.3 macroeconomic models
Unit 3.3 macroeconomic modelsUnit 3.3 macroeconomic models
Unit 3.3 macroeconomic modelsPaolaReyesR
 
Macroeconomic models ppp
Macroeconomic models pppMacroeconomic models ppp
Macroeconomic models pppPaolaReyesR
 

Plus de PaolaReyesR (16)

Free trade & protectionism part 1-international economics
Free trade & protectionism part 1-international economicsFree trade & protectionism part 1-international economics
Free trade & protectionism part 1-international economics
 
Free trade & protectionism part 1-international economics
Free trade & protectionism part 1-international economicsFree trade & protectionism part 1-international economics
Free trade & protectionism part 1-international economics
 
Indigenas forestales
Indigenas forestalesIndigenas forestales
Indigenas forestales
 
Iisec dt-2011-10
Iisec dt-2011-10Iisec dt-2011-10
Iisec dt-2011-10
 
Iisec dt-2011-10
Iisec dt-2011-10Iisec dt-2011-10
Iisec dt-2011-10
 
Economia boliviana
Economia bolivianaEconomia boliviana
Economia boliviana
 
Dda
DdaDda
Dda
 
Cs220
Cs220Cs220
Cs220
 
B pacheco0903
B pacheco0903B pacheco0903
B pacheco0903
 
Distribution of income
Distribution of incomeDistribution of income
Distribution of income
 
Macroeconomic models ppp
Macroeconomic models pppMacroeconomic models ppp
Macroeconomic models ppp
 
Pp growthanddevelopment
Pp growthanddevelopmentPp growthanddevelopment
Pp growthanddevelopment
 
Extended essay sample
Extended essay sampleExtended essay sample
Extended essay sample
 
Extended essay format_06
Extended essay format_06Extended essay format_06
Extended essay format_06
 
Unit 3.3 macroeconomic models
Unit 3.3 macroeconomic modelsUnit 3.3 macroeconomic models
Unit 3.3 macroeconomic models
 
Macroeconomic models ppp
Macroeconomic models pppMacroeconomic models ppp
Macroeconomic models ppp
 

Dernier

AUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptxAUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptxiammrhaywood
 
Protein Structure - threading Protein modelling pptx
Protein Structure - threading Protein modelling pptxProtein Structure - threading Protein modelling pptx
Protein Structure - threading Protein modelling pptxvidhisharma994099
 
Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.EnglishCEIPdeSigeiro
 
How to Show Error_Warning Messages in Odoo 17
How to Show Error_Warning Messages in Odoo 17How to Show Error_Warning Messages in Odoo 17
How to Show Error_Warning Messages in Odoo 17Celine George
 
How to Send Emails From Odoo 17 Using Code
How to Send Emails From Odoo 17 Using CodeHow to Send Emails From Odoo 17 Using Code
How to Send Emails From Odoo 17 Using CodeCeline George
 
The basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxThe basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxheathfieldcps1
 
Work Experience for psp3 portfolio sasha
Work Experience for psp3 portfolio sashaWork Experience for psp3 portfolio sasha
Work Experience for psp3 portfolio sashasashalaycock03
 
How to Make a Field read-only in Odoo 17
How to Make a Field read-only in Odoo 17How to Make a Field read-only in Odoo 17
How to Make a Field read-only in Odoo 17Celine George
 
How to Create a Toggle Button in Odoo 17
How to Create a Toggle Button in Odoo 17How to Create a Toggle Button in Odoo 17
How to Create a Toggle Button in Odoo 17Celine George
 
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRADUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRATanmoy Mishra
 
How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17Celine George
 
Diploma in Nursing Admission Test Question Solution 2023.pdf
Diploma in Nursing Admission Test Question Solution 2023.pdfDiploma in Nursing Admission Test Question Solution 2023.pdf
Diploma in Nursing Admission Test Question Solution 2023.pdfMohonDas
 
Riddhi Kevadiya. WILLIAM SHAKESPEARE....
Riddhi Kevadiya. WILLIAM SHAKESPEARE....Riddhi Kevadiya. WILLIAM SHAKESPEARE....
Riddhi Kevadiya. WILLIAM SHAKESPEARE....Riddhi Kevadiya
 
5 charts on South Africa as a source country for international student recrui...
5 charts on South Africa as a source country for international student recrui...5 charts on South Africa as a source country for international student recrui...
5 charts on South Africa as a source country for international student recrui...CaraSkikne1
 
Over the counter (OTC)- Sale, rational use.pptx
Over the counter (OTC)- Sale, rational use.pptxOver the counter (OTC)- Sale, rational use.pptx
Over the counter (OTC)- Sale, rational use.pptxraviapr7
 
In - Vivo and In - Vitro Correlation.pptx
In - Vivo and In - Vitro Correlation.pptxIn - Vivo and In - Vitro Correlation.pptx
In - Vivo and In - Vitro Correlation.pptxAditiChauhan701637
 
Department of Health Compounder Question ‍Solution 2022.pdf
Department of Health Compounder Question ‍Solution 2022.pdfDepartment of Health Compounder Question ‍Solution 2022.pdf
Department of Health Compounder Question ‍Solution 2022.pdfMohonDas
 
Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.raviapr7
 
What is the Future of QuickBooks DeskTop?
What is the Future of QuickBooks DeskTop?What is the Future of QuickBooks DeskTop?
What is the Future of QuickBooks DeskTop?TechSoup
 

Dernier (20)

AUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptxAUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptx
 
Protein Structure - threading Protein modelling pptx
Protein Structure - threading Protein modelling pptxProtein Structure - threading Protein modelling pptx
Protein Structure - threading Protein modelling pptx
 
Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.
 
How to Show Error_Warning Messages in Odoo 17
How to Show Error_Warning Messages in Odoo 17How to Show Error_Warning Messages in Odoo 17
How to Show Error_Warning Messages in Odoo 17
 
How to Send Emails From Odoo 17 Using Code
How to Send Emails From Odoo 17 Using CodeHow to Send Emails From Odoo 17 Using Code
How to Send Emails From Odoo 17 Using Code
 
The basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxThe basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptx
 
Work Experience for psp3 portfolio sasha
Work Experience for psp3 portfolio sashaWork Experience for psp3 portfolio sasha
Work Experience for psp3 portfolio sasha
 
How to Make a Field read-only in Odoo 17
How to Make a Field read-only in Odoo 17How to Make a Field read-only in Odoo 17
How to Make a Field read-only in Odoo 17
 
How to Create a Toggle Button in Odoo 17
How to Create a Toggle Button in Odoo 17How to Create a Toggle Button in Odoo 17
How to Create a Toggle Button in Odoo 17
 
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRADUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
 
How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17
 
Diploma in Nursing Admission Test Question Solution 2023.pdf
Diploma in Nursing Admission Test Question Solution 2023.pdfDiploma in Nursing Admission Test Question Solution 2023.pdf
Diploma in Nursing Admission Test Question Solution 2023.pdf
 
Riddhi Kevadiya. WILLIAM SHAKESPEARE....
Riddhi Kevadiya. WILLIAM SHAKESPEARE....Riddhi Kevadiya. WILLIAM SHAKESPEARE....
Riddhi Kevadiya. WILLIAM SHAKESPEARE....
 
5 charts on South Africa as a source country for international student recrui...
5 charts on South Africa as a source country for international student recrui...5 charts on South Africa as a source country for international student recrui...
5 charts on South Africa as a source country for international student recrui...
 
March 2024 Directors Meeting, Division of Student Affairs and Academic Support
March 2024 Directors Meeting, Division of Student Affairs and Academic SupportMarch 2024 Directors Meeting, Division of Student Affairs and Academic Support
March 2024 Directors Meeting, Division of Student Affairs and Academic Support
 
Over the counter (OTC)- Sale, rational use.pptx
Over the counter (OTC)- Sale, rational use.pptxOver the counter (OTC)- Sale, rational use.pptx
Over the counter (OTC)- Sale, rational use.pptx
 
In - Vivo and In - Vitro Correlation.pptx
In - Vivo and In - Vitro Correlation.pptxIn - Vivo and In - Vitro Correlation.pptx
In - Vivo and In - Vitro Correlation.pptx
 
Department of Health Compounder Question ‍Solution 2022.pdf
Department of Health Compounder Question ‍Solution 2022.pdfDepartment of Health Compounder Question ‍Solution 2022.pdf
Department of Health Compounder Question ‍Solution 2022.pdf
 
Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.
 
What is the Future of QuickBooks DeskTop?
What is the Future of QuickBooks DeskTop?What is the Future of QuickBooks DeskTop?
What is the Future of QuickBooks DeskTop?
 

International economics + reasons to trade

  • 2. Reasons for Trade Abraham Lincoln was once advised to buy cheap iron rails from Britain to finish the transcontinental railroad. He replied, "It seems to me that if we buy the rails from England, then we've got the rails and they've got the money. But if we build the rails here, we've got our rails and we've got our money." To paraphrase: "If I buy meat from the butcher, then I get the meat and he gets my money. But if I raise a cow in my backyard for three years and slaughter it myself, then I've got the meat and I've got my money.“
  • 3. "You could say that globalization, driven not by human goodness but by the profit motive, has done far more good for more people than all the foreign aid and soft loans provided by well-intentioned governments and aid agencies." -Paul Krugman What evidence is there to support Krugman's claim? What evidence is there to refute it?
  • 4. Why do nations trade? Three facts help answer this question: • Uneven distribution of natural, human and capital resources • Efficient production requires different combinations of resources • People may simply prefer products made in other countries due to non-price attributes
  • 5. Opportunity cost: the cost to society of producing a particular good is what it could have produced with those resources instead. The opportunity cost is what was given up in order to produce something. Comparative advantage: When a country can produce a good or service at a lower domestic opportunity cost than a potential trading partner. Absolute advantage: When a country can produce a particular good or service more efficiently than another country. Fewer resources are required to produce a particular good.
  • 6. The principle of comparative advantage: says that total output will be greatest when each nation produces the good for which it has the lowest domestic opportunity cost. Nations should specialize in the goods they produce at the lowest opportunity cost, and trade with other nations for other goods in which they do not have a comparative advantage.
  • 7. Goods Televisions Financial Services Country China 50 40 UK 10 30
  • 8. •Who has the absolute advantage in television production? ________________ Financial services? ________________. •Who has the comparative advantage in television production? __________________ Financial services? __________________. •How do you know? •Should trade take place? If so, who should produce what? 5/31/2012
  • 9. PPC for China and the UK TVs 50 China 10 UK 30 40 Financial services Production Possibilities Curve shows the different quantities of two goods that an economy could efficiently produce with limited productive resources 5/31/2012
  • 10. PPC analysis: •Clearly China has an absolute advantage in both TVs and financial services. •With its existing resources, China can produce more TVs and more financial services than the UK. 5/31/2012
  • 11. Should China and the UK trade? If so, who should specialize in what? •China can either produce 50 TVs or 40 financial services. To produce one TV it must give up 0.8 financial services. 1 financial service "costs" China 1.25 TVs •The UK can either produce 10 TVs or 30 financial services. To produce 1 TV it must give up 3 financial services. 1 financial service only "costs" .33 TVs. Financial services "cost" the UK less than they do China. TVs "cost" China less than they do the UK. China should produce TVs, the UK financial services 5/31/2012