International Trade and Comparative Advantage Essay Example for Free

International Trade and Comparative Advantage Essay ? In spite of the strong theoretical case that can be made for free international trade, every country in the world has erected at least some barriers to trade. Trade restrictions are typically undertaken in an effort to protect companies and workers in the home economy from competition by foreign firms. A protectionist policy is one in which a country restricts the importation of goods and services produced in foreign countries. The India, for example, uses protectionist policies to limit the quantity of foreign- produced sugar coming into country. In general, protectionist policies imposed for a particular good always reduce its supply, raise its price, and reduce the equilibrium quantity. Protection often takes the form of an import tax or a limit on the amount that can be imported, but it can also come in the form of voluntary export restrictions and other barriers. Tariff rates on dutiable imports have fallen dramatically over the course of history. A tariff is a tax on imported goods and services. A tariff raises the cost of selling imported goods. It thus shifts the supply curve for goods to the left. The price of the protected good rises and the quantity available to consumers falls. Protectionist policies reduce the quantities of foreign goods and services supplied to the country that imposes the restriction. As a result, such policies shift the supply curve to the left for the good or service whose imports are restricted. In the case shown, the supply curve shifts to S2, the equilibrium price rises to P2, and the equilibrium quantity falls to Q2. One of the most common protectionist measures now in use is the antidumping proceeding. A domestic firm, faced with competition by a foreign competitor, files charges with its government that the foreign firm is dumping, or charging an unfair price. Under rules spelled out in international negotiations that preceded approval of the World Trade Organization, an unfair price was defined as a price below production cost or below the price the foreign firm charges for the same good in its own country. While these definitions may seem straightforward enough, they have proven to be quite troublesome. A quota is a direct restriction on the total quantity of a good or service that may be imported during a specified period. Quotas restrict total supply and therefore increase the domestic price of the good or service on which they are imposed. Quotas generally specify that an exporting countrys share of a domestic market may not exceed a certain limit. In some cases, quotas are set to raise the domestic price to a particular level. A quota restricting the quantity of a particular good imported into an economy shifts the supply curve to the left, as in. It raises price and reduces quantity. An important distinction between quotas and tariffs is that quotas do not increase costs to foreign producers; tariffs do. In the short run, a tariff will reduce the profits of foreign exporters of a good or service. A quota, however, raises price but not costs of production and thus may increase profits. Because the quota imposes a limit on quantity, any profits it creates in other countries will not induce the entry of new firms that ordinarily eliminates profits in perfect competition. Voluntary export restrictions are a form of trade barrier by which foreign firms agree to limit the quantity of goods exported to a particular country. Although such restrictions are called voluntary, they typically are agreed to only after pressure is applied by the country whose industries they protect. A voluntary export restriction works precisely like an ordinary quota. It raises prices for the domestic product and reduces the quantity consumed of the good or service affected by the quota. It can also increase the profits of the firms that agree to the quota because it raises the price they receive for their products. In addition to tariffs and quotas, measures such as safety standards, labeling requirements, pollution controls, and quality restrictions all may have the effect of restricting imports. Many restrictions aimed at protecting consumers in the domestic market create barriers as a purely unintended, and probably desirable, side effect. These standards tend to discourage the import of foreign goods, but their primary purpose appears to be to protect consumers from harmful chemicals, not to restrict trade. But other nontariff barriers seem to serve no purpose other than to keep foreign goods out. The conceptual justification for free trade is one of the oldest arguments in economics; there is no disputing the logic of the argument that free trade increases global production, worldwide consumption, and international efficiency. But critics stress that the argument is a theoretical one. In the real world, they say, there are several arguments that can be made to justify protectionist measures. One argument for trade barriers is that they serve as a kind of buffer to protect fledgling domestic industries. The desire to maintain existing jobs threatened by foreign competition is probably the single most important source of todays protectionist policies. Some industries that at one time had a comparative advantage are no longer among the worlds lowest-cost producers; they struggle to stay afloat. Cost cutting leads to layoffs, and layoffs lead to demands for protection. The model of international trade in perfect competition suggests that trade will threaten some industries. As countries specialize in activities in which they have a comparative advantage, sectors in which they do not have this advantage will shrink. Maintaining those sectors through trade barriers blocks a nation from enjoying the gains possible from free trade. A further difficulty with the use of trade barriers to shore up employment in a particular sector is that it can be an enormously expensive strategy. That shifts the supply curve slightly to the left, raising prices for countries consumers and reducing their consumer surplus. The loss to consumers is the cost per job saved. One reason often given for the perceived need to protect Indian workers against free international trade is that workers must be protected against cheap foreign labor. This is an extension of the job protection argument in the previous section. From a theoretical point of view, of course, if foreign countries can produce a good at lower cost than we can, it is in our collective interest to obtain it from them. But workers counter by saying that the low wages of foreign workers means that foreign workers are exploited. This objection, however, fails to recognize that differences in wage rates generally reflect differences in worker productivity. Further, we have seen that what matters for trade is comparative advantage, not comparative labor costs. When each nation specializes in goods and services in which it has a comparative advantage measured in the amounts of other goods and services given up to produce them then world production, and therefore world consumption, rises. By definition, each nation will have a comparative advantage in something. Exports restrictions are the limitations on the goods and services exported to foreign country by the government. These limitations are imposed to prevent a shortage of goods in the domestic market when it is more profitable to export. As a part of foreign policy for a example as a competent of trade sanctions. Government also promotes exports by making following incentives policies under EXIM policy like Duty Entitlement Passbook (DEPB), Export Promotion Capital Goods, Special Economic Zones (SEZ’s) etc.

The Factors Leading to Harry’s Demise in O’Connor’s The River :: O’Connor The RiverÂÂ

The Factors Leading to Harry’s Demise in O’Connor’s The River  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In O’Connor’s story The River a young boy takes his own life in order to travel to the Kingdom of Christ. The boy lacks structure in his life, is neglected, and is bored. He lives with his parents in an apartment in a "city that rose like a cluster of warts on the side of the mountain". (P.35) There is not one particular incident that leads him to "baptise himself" (p.45), but a conglomeration of many. From his apartment and his parents, to his treatment as an adult, the only place in which he can find sanctuary is in the River of Christ’s blood. His new faith paired with his longing for acceptance is what will ultimately led to Harry Ashfield’s demise. Descriptions of the apartment throughout the story introduce the reader to the world in which this young boy lived in. In the beginning of the story the reader is told of how the apartment’s air is stale with the smell of smoke. It is so bad that Mrs. Connin tells Harry that she will not be able to visit him in the apartment if she has to "smell those dead cigarette butts long". (p. 24) Yet another "flaw" Mrs. Connin addressed in the apartment is the picture on the wall. It is full of "black lines crossing into broken planes of violent color". (p. 24) The abstract picture in the apartment is symbolic of the life that Harry lead. He lives in a chaotic world without much guidance or many rules. Harry’s life up to the point of meeting Mrs. Connin lacks structure. The very fact that the family lives in an apartment rather than a house represents a lack of permanence. There is no commitment when living in an apartment. There is no mortgage to pay or yard to tend to. Because Harry had lived in this world of concrete for probably all of his life he has never really experienced nature. Nature represents permanence in a world that is anything but. When he was walking with Mrs. Connin down to the river, he walks through the paths as if he’s "never been in the woods before". (p.32) Nature is preferable to an urban setting and a character that is not one with nature can be seen as lacking. This lacking is visible in Harry throughout the story. The Factors Leading to Harry’s Demise in O’Connor’s The River :: O’Connor The River   The Factors Leading to Harry’s Demise in O’Connor’s The River  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In O’Connor’s story The River a young boy takes his own life in order to travel to the Kingdom of Christ. The boy lacks structure in his life, is neglected, and is bored. He lives with his parents in an apartment in a "city that rose like a cluster of warts on the side of the mountain". (P.35) There is not one particular incident that leads him to "baptise himself" (p.45), but a conglomeration of many. From his apartment and his parents, to his treatment as an adult, the only place in which he can find sanctuary is in the River of Christ’s blood. His new faith paired with his longing for acceptance is what will ultimately led to Harry Ashfield’s demise. Descriptions of the apartment throughout the story introduce the reader to the world in which this young boy lived in. In the beginning of the story the reader is told of how the apartment’s air is stale with the smell of smoke. It is so bad that Mrs. Connin tells Harry that she will not be able to visit him in the apartment if she has to "smell those dead cigarette butts long". (p. 24) Yet another "flaw" Mrs. Connin addressed in the apartment is the picture on the wall. It is full of "black lines crossing into broken planes of violent color". (p. 24) The abstract picture in the apartment is symbolic of the life that Harry lead. He lives in a chaotic world without much guidance or many rules. Harry’s life up to the point of meeting Mrs. Connin lacks structure. The very fact that the family lives in an apartment rather than a house represents a lack of permanence. There is no commitment when living in an apartment. There is no mortgage to pay or yard to tend to. Because Harry had lived in this world of concrete for probably all of his life he has never really experienced nature. Nature represents permanence in a world that is anything but. When he was walking with Mrs. Connin down to the river, he walks through the paths as if he’s "never been in the woods before". (p.32) Nature is preferable to an urban setting and a character that is not one with nature can be seen as lacking. This lacking is visible in Harry throughout the story.

Google Generates Revenue Essay

Explain how Google generates revenue and identify future levels of revenue given some of the risk factors are for future revenue generation. Google generates the bulk of its revenue from its advertisers and a relatively small portion from enterprise search products like Google Mini. Google uses the pay per click cost basis which is an advertising model used to direct traffic to websites. The advertisers pay Google when the ad is clicked and according to analyst about 25% of searches results in an ad click. Google future levels of revenue include Google Audio Ads which are ads placed in radio programs. Google print ads which as the names suggest are ads placed by Google in printed material like magazines and newspapers. Google TV ads follow the same idea by putting ads in television commercials. Google Video Ads is a revolutionary concept where Google get paid when users click to play video ads. These stream of income come in stark comparison to the risk factors when because all of the risks are geared to stop ads. Ad blocking technology would affect Goggles result especially since this technology has existed for quite some time. Another factor that Google should seriously consider is the Index spammers harming the integrity of the search results. Spam is a nuisance and just like with email Google will have to develop some type of spam blocker to keep from alienating their customer base. Discuss the extent to which SOA will reduce reliance on a single provider of enterprise software and increase flexibility in deploying new applications and functionality. SOA will reduce reliance on a single provider and increase flexibility by leveling the playing field of sorts. The concept is to automate the business process that run across different IT systems. Usually different companies will set up their IT functions completely different from one another. This is understandable because every business has different technological needs. SOA has the ability to automate business processes that run across different IT systems and provide the option of tying them together. This would make working with a project that spans several businesses across the country not only feasible but affordable. This will increase flexibility and functionality when deploying new applications because the system will be able to instantly talk to each other even if they handle a different aspect of the business. Ideally this would be a seamless transition causing a more cost effect use of time and resources.

The Treaty Of 1783 S Essay - 1632 Words

In the 1780’s a treaty was signed in Paris on September 3, 1783, it brought the American Revolution to its successful conclusion. The American negotiators consisted of Benjamin Franklin and John Adams amongst others, they ended up winning under good terms for the new nation. In this win its independence is not without reservation and it is agreed frontiers. The coastal strip of the thirteen colonies is now added to the entire region west as far as the Mississippi and north to the Great Lakes. The same area that was bitterly fought over between Britain and France earlier in 1754-60. The land was seen by the colonists as an immensely rich area available for westward expansion. The treaty of 1783 opened doors to obtain the thirteen united colonies as a joint entity and that made their independence internationally recognized. Being that the colonies have described themselves as states, the United State of America was formally in existence, but how united was it and what form? These crucial questions dominated the 1780’s, my first attempt to answer this question led me to look at the thirteen states and the title articles of the Confederation. After researching I noticed that the articles treat each colony as virtually a sovereign state, making the task of congress- which I see played the role of the federal government almost an impossible task. It had no real power to demand either troops or funds from individual states. Having these problems caused widespread post warShow MoreRelatedThe Treaty Of Paris After The War Between Great Britain And The United States1693 Words   |  7 Pagesconsider a peace treaty to separate from France, which was one of America’s allies. Franklin agreed to the negotiations with the British for an end to the war. Peace commissioners John Adams and John Jay joined in, Franklin engaged the British in formal discussions beginning on September 27, 1782. 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