Chapter 9. Application: International Trade. Principle of Economics. Gregory Mankiw

Explanation of Chapter 9. Application: International Trade. Principle of Economics. Gregory Mankiw. The determinants of trade- The equilibrium without trade. The determinants of trade-The world price and comparative advantage. The winners and losers from trade-The gains and losses of an exporting country. The winners and losers from trade-The gains and losses of an importing country. The effects of a tariff. The effects of an import quota. The lessons for trade policy. The argument for restricting trade-The jobs argument. The argument for restricting trade-The national-security argument. The argument for restricting trade-The infant-industry argument. The argument for restricting trade-The unfair-competition argument. The argument for restricting trade-The protection-as-a-bargaining-chip argument