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Author Question: Which of the following is NOT a likely goal of macroeconomic coordination between nations? A) ... (Read 51 times)

vicotolentino

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on: Jun 30, 2018
Which of the following is NOT a likely goal of macroeconomic coordination between nations?
 
  A) Reducing trade barriers
  B) Achieving a desirable level of world economic growth
  C) Avoiding a global economic crisis
  D) Correcting global economic imbalances

Question 2

How would the opening of trade affect the incomes of workers in the U.S. and China? Use the case studies in the chapter on U.S. trade with China to support your answer.
 
  What will be an ideal response?


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jxjsniuniu

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Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

Students should have a clear statement of the Stolper-Samuelson theorem.
 Trade benefits the nation's abundant factor and harms the nation's scarce factor.
 Thus, since the U.S. is abundant in skilled labor, skilled workers should be better off, and unskilled workers should be worse off. The reverse is true in China.


vicotolentino

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Reply 2 on: Jun 30, 2018
Gracias!

sultana.d

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Reply 3 on: Yesterday
Excellent

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